{"id":6436,"date":"2014-09-22T09:09:00","date_gmt":"2014-09-22T09:09:00","guid":{"rendered":"http:\/\/localhost\/sccblog\/?p=6436"},"modified":"2015-10-14T15:41:39","modified_gmt":"2015-10-14T10:11:39","slug":"bank-entitled-to-choose-between-the-guarantor-and-the-borrower-for-recovery-of-dues","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2014\/09\/22\/bank-entitled-to-choose-between-the-guarantor-and-the-borrower-for-recovery-of-dues\/","title":{"rendered":"Bank entitled to choose between the guarantor and the borrower for recovery of dues"},"content":{"rendered":"<p ><b><span  >National Consumer Disputes Redressal Commission (NCDRC): <\/span><\/b><span  >\u201cIt is the choice of the bank to recover the money either from the guarantor or the borrower.&nbsp; It is abhorrent from the principles of law to say that the Bank must first of all recover the money from the borrower and thereafter it can proceed against the guarantor,\u201d held NCDRC while allowing a petition filed by Canara Bank challenging the order of Kerala State <\/span><span  >Consumer Disputes Redressal Commission which decided against the recovery made by the bank from the complainant against the dues payable by a person who was introduced by the complainant. The dispute arose when after the demise of borrower; his dues were adjusted against the term deposit of the complainant. The complainant denied the intention to be a guarantor or a surety for the borrower and alleged that he was made to sign on some blank papers. He also contended that the bank should have first approached the family of the borrower who had died. The District Forum as well as the State Commission both decided in favor of the petitioner. After perusing the records, NCDRC set aside the orders of District Forum and State Commission and held that bank is entitled to choose between the guarantor and the borrower for recovery of dues. NCDRC also upheld the recovery made by the bank on the ground that \u201cthe complainant signed the blank papers, if any, with his open eyes and on his own volition. Even if he has signed the blank papers, he did it at his own peril<i>.\u201d(Canara Bank v. R.S.Vasan, Revision Petition No. 914 of 2014,<\/i> decided on September 3, 2014<i>)<o:p><\/o:p><\/i><\/span><\/p>\n<p ><span  ><i>To read the full judgment, refer <a href=\"http:\/\/www.scconline.com\/LoginForNewsLink.aspx?q=2014_SCC_OnLine_NCDRC_337&amp;db=0 \">SCCOnLine<\/a><\/i><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Consumer Disputes Redressal Commission (NCDRC): \u201cIt is the choice of the bank to recover the money either from the guarantor or <\/p>\n","protected":false},"author":3,"featured_media":7321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11],"tags":[3009],"class_list":["post-6436","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tribunals_commissions_regulatorybodies","tag-recovery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin 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of guarantor is co-extensive with that of principal debtor and borrower has a right to recover the dues from guarantor","author":"Saba","date":"October 30, 2017","format":false,"excerpt":"High Court of Himachal Pradesh: A Single Judge Bench of Tarlok Singh Chauhan, J. dismissed a petition holding that the respondent-Bank was well within its right to recover the dues from the amount payable to the petitioner who stood guarantor for a loan. The petitioner filed the instant petition praying\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/Himachal-HC_1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":100001,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/01\/18\/indian-overseas-bank-directed-to-pay-rs-50000-for-delay-in-processing-cheque\/","url_meta":{"origin":6436,"position":1},"title":"Indian Overseas Bank directed to pay Rs 50,000 for delay in processing cheque","author":"Saba","date":"January 18, 2017","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC):\u00a0While directing Indian Overseas Bank to pay Rs 50,000 to a person for delay in processing cheque, NCDRC upheld the order of District Forum asking the bank to pay the money to the man while holding deficiency in service on part of the bank. Said\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":238380,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/11\/02\/del-hc-is-the-liability-of-principal-borrower-and-guarantor-co-extensive-court-reiterates-scs-position-on-continuation-of-sarfaesi-proceedings-against-guarantor-by-banks\/","url_meta":{"origin":6436,"position":2},"title":"Del HC | Is the liability of Principal Borrower and Guarantor co-extensive? Court reiterates SC&#8217;s position on continuation of SARFAESI proceedings against Guarantor by banks","author":"Bhumika Indulia","date":"November 2, 2020","format":false,"excerpt":"Delhi High Court:\u00a0A Division Bench of Hima Kohli and Subramonium Prasad, JJ., considered the following question: Whether a bank\/financial institution can institute or continue with proceedings against a guarantor under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), when proceedings under the\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":243195,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/02\/01\/ncdrc-if-there-is-no-express-provision-in-allotment-letter-and-sale-agreement-can-allottee-be-asked-to-pay-pending-dues-of-previous-allottee-commission-answers\/","url_meta":{"origin":6436,"position":3},"title":"NCDRC | If there is no express provision in allotment letter and Sale agreement, can allottee be asked to pay pending electricity dues of previous allottee? Commission answers\u00a0","author":"Bhumika Indulia","date":"February 1, 2021","format":false,"excerpt":"National Disputes Redressal Commission (NCDRC): C. Viswanath (Presiding Member) addressed an issue wherein an allottee after the purchase of the Shed could not get electricity connected due to pending dues of the previous allottee. The instant revision was filed against the Order passed by the State Consumer Disputes Redressal Commission,\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":300931,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/06\/ncdrc-directs-icici-bank-pay-25-lakhs-compensation-lost-property-documents\/","url_meta":{"origin":6436,"position":4},"title":"NCDRC directs ICICI bank to pay 25 lakhs compensation over lost property documents","author":"Ridhi","date":"September 6, 2023","format":false,"excerpt":"\u201cThe issue is not of fixing a value to a piece of real estate which the complainant is in possession of. Rather, it is one of compensation for the deficiency in service and of indemnifying the complaint against any future loss.\u201d","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"national consumer disputes redressal commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":42211,"url":"https:\/\/www.scconline.com\/blog\/post\/2016\/04\/07\/resort-to-strong-arm-tactics-to-recover-loans-strongly-deprecated-as-unethical-opposed-to-public-policy\/","url_meta":{"origin":6436,"position":5},"title":"Resort to strong arm tactics to recover loans strongly deprecated as unethical &#038; opposed to public policy","author":"Sucheta","date":"April 7, 2016","format":false,"excerpt":"Kerala High Court: While considering an appeal filed by a recovery agent\u00a0 against a nationalised bank for payment of commission towards a loan recovery, P. B. 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