Guarantor for hypothicated goods
Querist : Anonymous
Now the bankers are pressurizing my dad to pay the loan or else they will get attachment on our properties and auction it off.
Some of the points to ponder in the matter are:
1) Since the hypothication was done on movable goods, bank officials should visit the site regularly and see the hypothicated goods are in order. If any fraud is found they should file a complaint with police.
Even after 5 years of sale of the hypothicated goods, bank has still not given any complaint to police.
2) The properties that my dad has are
a) My house which is actually in name of my dad's HUF, my mom, myself and my wife are other members of HUF
b) My factory which infact is run in a rented shed.
c) Machinery of my factory. My factory is Proprietorship firm and my dad is the Proprietor.
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Since the bankers have not complained to police I believe that some of the officials were corrupt and didn't let the facts to surface. Can my dad be released out of his guarantor liability since it were the bank officials who didn't follow the procedure at the right time and my nephew got chance to sell off his factory as well.
Can bank get attachment on my house (HUF Property)? We do not have any other residential property.
Since it is internal matter, can I sell off all the machinery in name of my father's company to another company which is in my name?
first, are u suggesting that your nephew committed a fraud?
does annual stock audit/ annual inspection part of the sanction terms by the bank?
guarantee is given to cover instances of inability of the actual borrower to pay off. I see no reason why the guarantee should not be invoked.
If you have good reason to believe that there is a collusion between your cousin and bank officials, then it could be worthwhile to proceed against them for charges of conspiracy to commit fraud, committing actual fraud. You may also approach the senior bank officials in this regard.
Querist : Anonymous
1) My nephew was a big man then. He had large turnover and was mostly working with PSU companies. Hence bank used to ignore many of their faults.
He may or may not have done fraud but he definitely had good hold on the officers and directors of the bank and hence smaller matters didn't surface then.
What I want to say that the bank has not followed the procedure laid by the law and due to it the borrower was able to sell off his remaining assets and thus bank can't do anything to him now but my dad who is the guarantor has few assets in his name and hence bank is after him now.
2) When the loan is given against movable goods, routine inspection is almost always part of the contract.
3) My nephew might have, by hook or crook, influenced the bank directors and officials to suppress the matter. It is now that the bank is taken over by other larger bank which is from outside the state, the matter has surfaced.
I believe this bank should be Bank of Rajasthan!!
Querist : Anonymous
BTW bank is not "BOR" its a Multi State Co-Operative Bank :)
Querist : Anonymous
I wish to know if directors can become guarantor in the loan of its company?
All the three directors of the company are also the guarantors in addition to my dad.
The guarantee remains in force until the terms of the sanction letter are changed.
Querist : Anonymous
1) Bank has shown that the "Stock" was maintained even after 3 years of the account becoming NPA but bank didn't take possession of the said stock.
Should I show my willingness to negotiate the outstanding if the stock is handed over to me or if they are able to show that they still have the stock.
I know that there is no stock as on actual and hence bank can be proved to be showing wrong facts. If that can be proved I believe under section 139, The Indian Contract Act of 1872, since the bank has strayed from the contract, the guarantor can plead for release from his duty.
2) What happens to the assets of the guarantor? The assets are as follows:
a) A residence which is infact in owner ship of HUF where the guarantor is Karta. The loan wasn't taken for the benefit of the HUF. Over & above the said residence is given as security against the guarantor's business loan (CC & Machinery).
b) A factory which is infact on rented land & building. There is some machinery in name of the company where the guarantor is the proprietor. Again the machinery, furniture & fixtures are mortgaged to the bank for business loan (CC & Machinery).
Apart from the above, the guarantor is a Farmer and can he be granted any relaxation under the Section 60, CPC of 1908.
Can any property be attached? If attached, can the other bank under which the said properties are mortgaged sue the attaching bank?
Querist : Anonymous
What about the attachment of properties?
Querist : Anonymous
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