Q. At the time of taking loan from bank by A, B gives his imm prop as collateral, stands as guarantor . After2 years, B withdraws his guarantee &property papers are released by bank to B and replaced with new collateral of C.bank loan becomes bad. recovery of loan can be claimed from B

Question

At the time of taking loan from bank by A, B gives his immovable property as collateral and thereby stands as guarantor . After two years, B withdraws his guarantee and property papers are released by bank to B. New guarantors C and his collateral are replaced. But bank specifically not mention the release of collateral of B in sanction letter. After another 3 years , bank loan becomes bad. Whether  recovery of loan can be claimed from B under securitization. Bank sues B also on the pretext that his guarantee is not released.

Answer 1

As per understanding of question B shall not be liable.