06 October 2012
My fathers's friend Mr. X take a loan of Rs. 1,00,000 in 20007 form Delhi narik Sehkari Bank Ltd. which is register under Delhi Co Op Societies Act 2003 and my father and one other person give surety/guarantee for loan of him, as they are already member of that society.
Mr.x was paying loan regularly, but in 2011 that man lost his job and is not paying his loan, after one year notice to Mr.X, but he did not respond to any notice of bank of Rs. 70,000
and now in oct 2012 my father got summened from Registrar of Arbitration, registrar called both the surety on 9.10.2012
I want to ask position of two surety (one o f of him is my father ),
who will be first liable for loan, 1. Personal Assets of Mr. x is first liable ( as he have two home in Delhi which valued about 30 Lacs ) 2. or two surety have to pay Loan of Mr. X
and if Two Surety have to paid loan , are both surety can recover amount from him. legally
Please help me in this case, so that i can help my father
07 October 2012
The primary liability of payment is of the principal debtor. But in case of his default such amount can be recovered from the surety. Where there are more than one surety then they will be jointly and severely liable for such amount. If such amount is paid by surety then he/they can legally recover such amount from the principal debtor.
CAclubindia
