CAN BANK TAKE ACTION AGAINST PERSONAL GUARANTOR
2 years ago
CAN BANK TAKE ACTION AGAINST PERSONAL GUARANTOR IF THE PERSON (DEBTOR) TO WHOM THE GUARANTOR HAS SIGNED HAS FILED IP IN COURT ?
Vijay kr Arora
Responded 2 years ago
Bank has option either against personal guarantor or principal borrower. You cannot resist the option of the Banker to be exercised. You may be in good books in Bankers and help them to find out properties of borrower to attach the same.
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According to the Supreme Court, banks can utilise personal guarantees to initiate bankruptcy proceedings against personal guarantors. If creditors may file bankruptcy proceedings against personal guarantors, banks will be able to pursue their remedies. As a result, the bank is permitted to take such action under the IBC.
Thank you very much.
Ayantika Mondal @ Prime Legal
Responded 2 years ago
Banks can use personal guarantees to begin bankruptcy procedures against personal guarantors, according to the Supreme Court. Banks would be able to pursue their remedies against personal guarantors if creditors may begin bankruptcy procedures against them. Therefore, under the IBC, the bank can take such action.
thank you.
Lucem Leg
Responded 2 years ago
A.Dear Sir,
If the debtor is died or has fled away from their place, then, the bank will come back against the personal guarantor as the personal guarantor has signed it. As the personal guarantor is liable to pay the outstanding due amount which in respect of the debtor has taken it.
In case the bank has filed the case in the court, then, they must have made you the party and a summon must have reach to you or may reach to you before the next date of hearing. At the time of hearing, you will have to appear and submit your arguments before the court.
Under the Provincial Insolvency Act 1920
Repayment of loans and credit cards
Multiple unsecured loan defaults
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