Banking
Liability of HUF in case of personal guarantee
I have given personal guarantee with respect to a cc loan given in the name of a pvt ltd company where I am a director.The company has incurred huge losses and account has become NPA.Does the bank have the right to attach the property purchased in the name of my HUF or my wife?
By  ullas ahuja  |  09 Mar 2016  |  Upvotes: 0  | 

3 Answer(s)

Vishal Kumar Thakur
Advocate

The bank cannot sell of the HUF property on its own. The bank will have to obtain a decree from a competant court attaching your share in the HUF, then only the bank can proceed further.

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Tushar Bhargava
Advocate

Your share in HUF can be attached and sold in execution of decree or Recovery Certificate that may be obtained by the bank against you to enforce your guarantee liability. However your property (your share) cannot be enforced under SARFAESI Act if your share is not mortgaged in addition to your personal guarantee.

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Harshit Bhurani
Advocate
Your share in the HUF property can be attached, but your wife's exclusive property cannot be attached as the guarantee is personal and the liability arising therefrom is also personal.But any property gifted to wife after this dispute arises may be assailed and challenged as being to done to defraud creditors.
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