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Recovery of loan – Liability of guarantors – Is Co-extensive and Joint as well as Several: SFC Act 1951. Section 29 :

Dr. K. Shivaram
Usha Rani & Anr vs. Delhi Financial Corporation & Ors AIR 2013 Delhi 207

The respondent No. 1 Delhi Financial Corporation sanctioneda loan of Rs. 14,58,000/- to respondent No. 2 Shyam Lal for purchase of a CNG bus. A Term Loan  Agreement-cum-Hypothecation Deed was executedin favour of respondent No. 1. The petitioners had  stood as guarantors for the loan taken by respondentNo. 2 from respondent No. 1. Since respondent No.  2 defaulted in payment of the loan taken from respondentNo. 1, the bus which was purchased from the funds provided by respondent No. 1, was seized by respondent No. 1 and was sold for recovery of its dues. The respondent No. 1 filed an application u/s. 32(G) of S...

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