Hi,

This is a case of my father, who signed as a guarantor in a loan agreement of mini-bus which was sanctioned by Delhi Finance Corporation in 1995. The borrower was Mukhtiyar Singh and Three Guarantors were taken including my father. Sanctioned amount was a Rs. 4,61,000/- + Rs. 61,000/-(margin money).

Now in 1997, father has sent a letter from registered/AD post for withdrawal of guarantee to DFC- reply of which never received.

Now since 2005, DFC is issuing a notice to us for recovery of more than Rs. 50 lakhs , mentioning that borrower had sold the vehicle without closing the loan account.

DFC was well aware of the borrower`s intention to sale the vehicle and gave sale permission to the borrower. and borrower has given a stamped letter in 2004 to DFC mentioning the sale of vehicle in scrap and even after that DFC has not taken any steps to inform guarantors about the sale and sent notice in 2005-after more than 1.5 yrs regarding the issue.

since 2005 there has been too many ups and downs in the case as we went to High Court also bt high court referred back the case to DFC.


DFC in other hand is not listening to us, not even giving reply to our review petition filed and continously issuing notices of property attachment/ jail. All the officers below chairman are saying that they cannot take any decision regarding the case and from past two weeks we are trying for an appointment with the chairman but that too is in vein.

B/w there was a one time settlement also in this case in 2006, which was under the guidance of previous chairman Ms. Neeru Nand a-money was deposited by each guarantor and borrower as OTS but DFC didn`t give any no dues to them, as a result when she got transferred , case was reopened by the new chairman.

There are so many other strong points in our case here..

I seek legal advise in this case which is unnecessary harassing my father who is a senior citizen and is having no continuous source of income.

Want to finish off the case. Please advise


You can contact me at sakshi.sagar@yahoo.com, 09619205356