Paladin Banishment on a creature grappling party members?

[Bloodmere]

My level 20 Paladin used smite evil and the evil outsider was banished due to its failed saves. During this two party members were in a grapple with him. What happens to the party members?

[Nefreet]

They lose the grappled condition.

[Claxon]

If the question is: Do they go along with the banished creature?

The answer is no.

[blahpers]

They fix the cable?

[Hogeyhead]

Congratulations on getting a char to 20, as an aside.