My father in law has signed as guarantor for a loan which was taken by his previous driver long back.
2 years ago
My father in law has signed as guarantor for a loan which was taken by his previous driver long back.he has left the job long ago and now he is not paying the loan back.The bank has asked my father in law to make the payment,and they have send a notice 6 months ago to make the payment.Is there anything can be done ?
Lucem Leg
Responded 2 years ago
A.Dear Sir/Mam,
Your father in law is liable to pay the loan which is outstanding as he is a guarantor of his driver.
Bank will take serious action against your father in law if he does not reply to them on time. OR Bank can also file case against your father in law to recover the loan amount as he is liable to pay. If your father in law pays off the outstanding liability to the bank, then, he has the right to recover the same amount from the driver by firstly sending the legal notice and then if no reply of the said legal notice, he can file the case in the competent court of law to recover it from the driver.
If your father in law has signed as guarantor the. He is liable to pay the money to the bank to fulfill his obligation as a guarantor. Although after that he has all right to recover that money from the his driver i.e. the principal debtor. If he denies then your father in law could move to the court to get the same.
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
As per the Contract Act, the guarantor enjoys the right of subrogation wherein the guarantor gets to claim indemnity from the principal debtor in case the guarantor when the principal debtor defaults.
So you father in law could claim the money back from the driver after paying the payment to the bank.
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