Dear Experts,

One of my friend was granted loan of Rs 4,75,000 to purchase a house from union bank. He had purchased the home and deposited initial 5 premiums regularly , meanwhile he expired and also the property was not insured by the bank. Then We contacted branch manager for continuation of the premium but BM had advised us not to deposit premium since Lonee was a government servant and bank will collect the terminal benefits against the loan granted to him.

After the laps of 1 and half year bank has given us notice under sarfacia act to deposit complete amount with interest within 30 days which is amounting Rs 5,75,000.

Question 1 : Is it fair in the eyes of law.

2 : Weather the bank can declare the amount NPA without informing guarantor.

3 : Weather bank can implement sarfacia act on this issue.

4 : In this case bank have not insure the property so weather bank can refuse to insure the property without informing guarantor.

Please advise… Thanking YOU.