Guarantor in personal loan, borrower defualter
1 month ago
Sir, I am a guarantor in my friends personal loan
Now he has become defaulter
As a guarantor I have received summon
From the court.
What are my liability & legal course of action available
My signatures were also forged
A.Dear Client,
A guarantor holds equal liability for repaying the debt of the principal borrower. If the bank's efforts to recover the debt from the borrower prove unsuccessful, the bank can pursue recovery from the guarantor, including attaching the security provided by the guarantor. Even in the absence of a guarantor, the legal heirs of the deceased guarantor may be held responsible for settling the debt from inherited assets.
While a guarantor can request additional time to settle the dues, they cannot evade the responsibility for loan repayment. Legal actions, such as filing a civil suit or initiating criminal proceedings, may be taken against a guarantor. Debt recovery tribunals can also be utilized by banks to recover dues by attaching the guarantor's property.
If a recovery suit has been filed before the Debt Recovery Tribunal (DRT) seeking attachment of the guarantor's property, obtaining relief through litigation might be challenging. However, you have the option to file a criminal suit for forgery under Section 463 of the IPC, punishable under Section 465. The burden of proving forgery rests with the complainant/plaintiff in such cases.
A guarantor holds equal liability for repaying the debt of the principal borrower. If the bank's efforts to recover the debt from the borrower prove unsuccessful, the bank can pursue recovery from the guarantor, including attaching the security provided by the guarantor. Even in the absence of a guarantor, the legal heirs of the deceased guarantor may be held responsible for settling the debt from inherited assets.
While a guarantor can request additional time to settle the dues, they cannot evade the responsibility for loan repayment. Legal actions, such as filing a civil suit or initiating criminal proceedings, may be taken against a guarantor. Debt recovery tribunals can also be utilized by banks to recover dues by attaching the guarantor's property.
If a recovery suit has been filed before the Debt Recovery Tribunal (DRT) seeking attachment of the guarantor's property, obtaining relief through litigation might be challenging. However, you have the option to file a criminal suit for forgery under Section 463 of the IPC, punishable under Section 465. The burden of proving forgery rests with the complainant/plaintiff in such cases.
Helpful
Helpful
Share
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. Even in the absence of a Guarnator his or her surviving legal heirs are held liable to write off the debt from the asset or property they inherited from the deceased guarantor. 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. The Lender has probably filed a recovery suit before the Debt Recovery Tribunal(DRT) seeking attachment of the guarantor's property. So, desired relief in the matter is almost remote even through litigation before the Court. However, you can file a criminal suit for forgery under Sec.463 of IPC punishable under Sec.465 of IPC and the onus to prove forgery lies on the complainant/Plaintiff. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
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. Even in the absence of a Guarnator his or her surviving legal heirs are held liable to write off the debt from the asset or property they inherited from the deceased guarantor. 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. The Lender has probably filed a recovery suit before the Debt Recovery Tribunal(DRT) seeking attachment of the guarantor's property. So, desired relief in the matter is almost remote even through litigation before the Court. However, you can file a criminal suit for forgery under Sec.463 of IPC punishable under Sec.465 of IPC and the onus to prove forgery lies on the complainant/Plaintiff. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
Helpful
Helpful
Share
Read Related Answers
Compassionate appointment
Dear Client,
The SBI rules can not be breached. it could be the policy of the bank to not hire anyone. Please check with the rules and guidelines for heiring employees
Education Loan OTS
Dear Client,
Try to go to the online portal of the said bank and complaint about grievance through the same. it is advisable to repay the loan amount within the stipulated time or you may face seizur...
Sbi account put on stop by cyber security
Dear Sir/Madam,
Under the following provisions the Hon’ble Magistrate Court having ample powers to unfreeze the Bank accounts. Further, the Hon’ble Court has vast powers to hand over the properties/v...
My bank account got freezed
Dear Client,
Once a cybercrime scam or fraudulent transaction is reported online to the National Cyber Crime Reporting Portal(NCCRP), on the instruction of the Cyber Crime Cell, the investigating tea...
Bank loan harassment
Dear Client,
In the given scenario, you can escalate your grievance with the Grievance Redressal Officer of the concerned Bank, and in case no suitable response is received from the GRO of the Bank yo...
Read Blogs on Banking
Banking Lawyers
Find Lawyers by Location
