Regarding surity and stay of execution
1 week ago
Hello sir, I and 2 others have put a surity signature to a person in 2012, but since he did not cleared the loan amount, the amount is being deducted from my job, I am a government teacher and my salary is getting cut every month from the last 2 years that is from march 2022, at that time my MEO madam has told it will continue for 2 years and you can stop after that, but now the MEO has changed and wants a court paper to stop my salary cutting. I want Stay of Execution of Order for atleast an year to cover my own financial needs. Please help with how to t proceed forward with this
A.Dear Client,
The guarantor of the loan has similar liabilities as that of the borrower and is responsible to repay the loan amount. Section 128 of the Indian Contract Act, 1872 provides for the surety’s liability and states that the liability of the surety is co-extensive with that of the principal debtor. The Supreme Court in multiple judicial pronouncements has emphasized that surety of a loan is liable to pay it if the debtor fails to clear it. It has also ruled that the creditor has a right to obtain a decree against the surety and the surety has no right to restrain execution of the decree against the creditor until the entire loan amount is repaid. However, the Court is empowered to stay the execution of decree under Rule 29 of Order 21 of Code of Civil Procedure (CPC) in favor of the judgement debtor. If required, you can consult an advocate for advice and assistance.
Hope it helps.
Thank You.
The guarantor of the loan has similar liabilities as that of the borrower and is responsible to repay the loan amount. Section 128 of the Indian Contract Act, 1872 provides for the surety’s liability and states that the liability of the surety is co-extensive with that of the principal debtor. The Supreme Court in multiple judicial pronouncements has emphasized that surety of a loan is liable to pay it if the debtor fails to clear it. It has also ruled that the creditor has a right to obtain a decree against the surety and the surety has no right to restrain execution of the decree against the creditor until the entire loan amount is repaid. However, the Court is empowered to stay the execution of decree under Rule 29 of Order 21 of Code of Civil Procedure (CPC) in favor of the judgement debtor. If required, you can consult an advocate for advice and assistance.
Hope it helps.
Thank You.
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A.Dear sir,
You have to implead yourself as a party in the pending case if any otherwise file separate case to discharge you from suretyship.
You have to implead yourself as a party in the pending case if any otherwise file separate case to discharge you from suretyship.
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