National Consumer Disputes Redressal Commission (NCDRC), presided by Justice J M Malik, dismissed the complaint filed by Kerala resident R S Vasan against Canara Bank, while rejecting his contention that he was not a guarantor and that for the recovery, the bank should have first approached the family of the borrower who had died.

"It is well-settled that it is the choice of the bank to recover the money either from the guarantor or the borrower. It is abhorrent from the principles of law to say that the bank must first of all recover the money from the borrower and thereafter it can proceed against the guarantor," NCDRC said.

It passed the order while hearing a revision petition filed by the bank against Kerala State Consumer Commission, which had directed it to pay Rs 1,49,698 to Vasan.

The district forum, too, had decided the case in Vasan's favour. NCDRC reversed both the orders passed by the lower foras.

NCDRC, while rejecting Vasan's claim that he had no intention to be a guarantor, said that he had signed the blank papers at his own peril.

"The complainant signed the blank papers, if any, with his open eyes and on his own volition. Even if he has signed the blank papers, he did it at his own peril," it said.

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