Dismissed

Surrender Kumar v. the Delhi State Co-Operative Bank Ltd. and Ors.

Delhi HC15 Jan 2020W.P.(C)/30/2020

Case brief

AI extract

What is this about?

In a writ petition, the Delhi High Court dismissed the petitioner's challenge to an arbitration award holding him jointly and severally liable as a guarantor. The Court held that the bank is not barred from proceeding against the guarantor and refused to stay recoveries from his salary.

What did the court decide?

Relief sought to direct recovery only from legal representatives and not from petitioners was denied; petition dismissed.

Surrender Kumar Vs the Delhi State… — Contract and Commercial Disputes | Delhi HC (2020)

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$~6

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- W.P.(C) 30/2020 and C.M. APPL. 77/2020 (stay)

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SURENDER KUMAR ..... Petitioner

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Through: Mr. Dalip Kumar Santoshi and Mr. Anil Kumar, Advocates.

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versus

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THE DELHI STATE CO-OPERATIVE BANK LTD. AND ORS. ..... Respondents

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Through:

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CORAM: JUSTICE S.MURALIDHAR JUSTICE TALWANT SINGH

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O R D E R % 15.01.2020

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The Petitioner is aggrieved by the arbitration award dated 26^th September, 2016 and the order dated 14^th November, 2018 disposing of an appeal thereagainst, by which the Petitioner, as a guarantor for the loan availed by the original borrower, was held jointly and severally liable to make payments to the Respondent No. 1 bank.

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The Petitioner also seeks a writ of mandamus directing the Respondent No. 1 bank to recover the entire loan amount from the legal representatives (‘LRs’) of the deceased original borrower.

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Learned counsel for the Petitioner does not dispute that he in fact stood as guarantor for the loan availed by the original borrower from the Respondent No. 1 bank. His submission is that the bank is making recoveries not only

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W.P.(C) 30/2020 Page 1 of 2

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from the original borrower, but also from the Petitioner, and given the present financial status of the Petitioner, the direction to recover as much as Rs. 10,000/- from his salary is unfair.

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As long as the Petitioner does not dispute having stood as guarantor for the loan borrowed by the original borrower, it is open to the Respondent No. 1 bank to proceed against him and the borrower both jointly and severally.

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With the arbitral award and appellate order against the Petitioner, the Court is unable to appreciate how a direction can be issued to the bank to not proceed against the Petitioner but only proceed against the LRs of the original borrower. The relief sought cannot be granted.

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The petition is dismissed. Pending application is also disposed of. No costs.

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S. MURALIDHAR, J.

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TALWANT SINGH, J.

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JANUARY 15, 2020 nk

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W.P.(C) 30/2020 Page 2 of 2

Surrender Kumar v. the Delhi State Co-Operative Bank Ltd. and Ors.

Case brief

What is this about?

What did the court decide?

Surrender Kumar v. the Delhi State Co-Operative Bank Ltd. and Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

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