Loan from Sriram chits finance company

Hi All, My grandfather had taken a loan of 4 lakhs from finance company, he was railway employee, 2 government employees surity has been taken for this loan. This was in 2012, they had deducted the amount for insurance in the loan amount sanctioned. They had paid some 7 to 8 installments, after that my grandfather expired, the manager of finance company told us to submit the death certificate to do the rest formalities to close the loan account. As advised they submitted the death certificate in 2013. Now in 2019 May the surity gave people have recieved legal notice to appear in the court, as the finance company wants to recover from the surity providers salary for this loan, now they are telling the amount is now 13lakhs, this has to be paid. The finance company did not give any insurance documents to us after sanctioning the loan, and also they did not give any confirmation that the loan account is closed after producing death certificate. Now the manager of the finance company is different, he is calling in 2019 to surity provided people to pay the dues. Now what the surity provided people or family members have to do in this case.