Guarantor plight
2 months ago
I stood guarantor for purchase of fishing vessel. They are 20 partners. Not repaid the loan amount. Bank initiated action against me.i made complaint with sp . police intervention they said the boat to be sold and the loan amount to be repaid.
The vessel was given by them for lease to one person. That person said he will buy the boat for 32 lacs and issued cheque which was not honoured.
I am a senior citizen. The banker are not caring to seize the boat saying that it is not possible to handle fisherman. Bankers are telling we will auction your house. My question is while releasing loan amount they not followed anything mentioned in the sanction letter.
A. Personal guarantee of the partners not got.
B. Boat was not insured
C.govt sanction letter was not got
D. Not even a single notice was issued to partners to recover loan.
In this situation what I have to do.
A.Dear Client,
A Guarantor is equally liable for repayment of the debt of the principal Borrower and if after exercising all the steps for recovery of debt against the Borrower fails, the Bank takes steps for recovery of debts from the Guarantor attaching the security offered by the guarantor against the loan. Being Guarantor you can make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your loans for any reason whatsoever. Moreover, legal actions may also be taken against a guarantor including filing a civil suit in court or initiating criminal proceedings against him. The banks may also make use of debt recovery tribunals to recover the dues they are owed from the defaulter borrower by attaching the guarantor's property. Under the Indian Contract Act, 1872, the liability of the guarantor is co-extensive with that of the principal debtor unless it is otherwise provided by the contract. If the guarantor has created any security interest over any property/asset owned by him, the Bank takes steps under Sec.13 of the SARAFESI Act, 2002 for recovery of debts from the guarantor. Even if the guarantor has not created any security interest over his property but owns a property or asset, the Bank can make an application before the Debt Recovery Tribunal for attachment of said property and sale of such property through auction under RDDB & FI Act, 1993 for recovery of debt lying outstanding against the loan. Every business loan does not require a personal guarantee, but it depends on the discretion of the lender and the type of loan. Since the Boat is not insured, the Borrowers and guarantor shall be personally liable for repayment of the loan. As per the extant guidelines, no third-party guarantee should be obtained if the account is to be covered under the Credit Guarantee Scheme. However, in case the constitution of the borrower is proprietary or partnership, the personal guarantee of the proprietor/ partner is not treated as a third-party guarantee. In the given situation, if you are aggrieved with the biased and arbitrary actions of the Bank taken for the recovery of a loan, you may escalate your grievance before the regulatory authority RBI ,under the integrated Banking Ombudsman Scheme online at https://cms. rbi.org.in or by calling the helpline number 14440. The complaint may be lodged online or by filing an offline complaint and submitting the same at the Centralised Receipt and Processing Centre (CRPC) at RBI, 4th Floor, Sector 17, Chandigarh, PIN-160017. Further, a quick counseling session with a certified credit counselor can help you discover your options and choose the right path to resolve or settle the matter.
A Guarantor is equally liable for repayment of the debt of the principal Borrower and if after exercising all the steps for recovery of debt against the Borrower fails, the Bank takes steps for recovery of debts from the Guarantor attaching the security offered by the guarantor against the loan. Being Guarantor you can make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your loans for any reason whatsoever. Moreover, legal actions may also be taken against a guarantor including filing a civil suit in court or initiating criminal proceedings against him. The banks may also make use of debt recovery tribunals to recover the dues they are owed from the defaulter borrower by attaching the guarantor's property. Under the Indian Contract Act, 1872, the liability of the guarantor is co-extensive with that of the principal debtor unless it is otherwise provided by the contract. If the guarantor has created any security interest over any property/asset owned by him, the Bank takes steps under Sec.13 of the SARAFESI Act, 2002 for recovery of debts from the guarantor. Even if the guarantor has not created any security interest over his property but owns a property or asset, the Bank can make an application before the Debt Recovery Tribunal for attachment of said property and sale of such property through auction under RDDB & FI Act, 1993 for recovery of debt lying outstanding against the loan. Every business loan does not require a personal guarantee, but it depends on the discretion of the lender and the type of loan. Since the Boat is not insured, the Borrowers and guarantor shall be personally liable for repayment of the loan. As per the extant guidelines, no third-party guarantee should be obtained if the account is to be covered under the Credit Guarantee Scheme. However, in case the constitution of the borrower is proprietary or partnership, the personal guarantee of the proprietor/ partner is not treated as a third-party guarantee. In the given situation, if you are aggrieved with the biased and arbitrary actions of the Bank taken for the recovery of a loan, you may escalate your grievance before the regulatory authority RBI ,under the integrated Banking Ombudsman Scheme online at https://cms. rbi.org.in or by calling the helpline number 14440. The complaint may be lodged online or by filing an offline complaint and submitting the same at the Centralised Receipt and Processing Centre (CRPC) at RBI, 4th Floor, Sector 17, Chandigarh, PIN-160017. Further, a quick counseling session with a certified credit counselor can help you discover your options and choose the right path to resolve or settle the matter.
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