Bank can recover loan dues from guarantor after principal borrower defaults: HC

Dainik Bhaskar

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The Lucknow bench of the Allahabad High Court has given an important decision for those who give guarantees for loans. The court has clarified that in case of default in repayment of loan, the bank cannot be forced to recover the amount first from the main borrower. The bank can recover its dues from both the borrower and the guarantor simultaneously. The division bench of Justice Shekhar B Saraf and Justice AK Chaudhary gave this decision while…