Gurantor property

1. my wife have received court notice asking to attend the hearing. it was like a shock. 2. it is understood that her mother has executed a gift deed of properties on daughters name, (where daughter also has accepted through sale deed and registered in a sub registrar office). in fact, the property is sold for an amount and in the guise of less amount of registration charges, the gift deed was executed by mother in law. 3. it is under stood that her mother has given a suriety ( the property which was registered in daughters name) to a chit fund co which has given loan to another person' 4. now, the person, who took the loan is absconding by initiating the i.p proceedings and not traceable. 5. all these issues were not known to us until the court notice is received.( it was kept a secret by mother in law) 6. how to proceed now AS WE ARE CLUE LESS. FEEL CHEATED BY MOTHER IN LAW. 7. WHETHER THE PROPERTY WILL BE LOST? (OR) IN WHICH WAY WE ARE RESPONSIBLE ? DO WE NEED TO ATTEND THE COURT?