Cheques issued to a demised person
k n nagaraj
(Querist) 15 November 2014
This query is : Resolved
a person has given certain amount on loan to two or three persons by taking promissory note and post dated cheques. Now he has passed away. Are the cheques still valid. What action can the family take to recover the amount given on loan. Please advise.It is the lender who has passed away.
Kumar Doab
(Expert) 15 November 2014
The deceased depositor A/c can be kept operational by nominees/successors.....for certain permitted purposes.
The lender can recover the debt from estate of the deceased.
Approach a seasoned lawyer at your location.
ajay sethi
(Expert) 16 November 2014
you have to inform the bank of demise of said person . banks permit account to be kept operational for deposit of cheques for certain period .
you can also obtain fresh cheque from the borrower in name of deceased legal heirs
Advocate. Arunagiri
(Expert) 16 November 2014
You can send a notice demanding the loan amount to the legal heirs.
Failing which you can initiate civil suit on them.
Rajendra K Goyal
(Expert) 16 November 2014
Bank may allow deposit of uncleared effects / collections in the account of the deceased. Withdrawal is possible only by closing of the account and after following the set procedure of the Bank.
Once the person expired intestate all assets belong to his legal heirs. proceeds of such cheque is also the property of the heirs.
Cheques are valid till drawer is alive.
Otherwise Legal heirs may claim by sending notice.
V R SHROFF
(Expert) 16 November 2014
demand from heirs, recover thru civil suit.
Sudhir Kumar, Advocate
(Expert) 17 November 2014
cannot agree/disagree. You have not even intimated whether the borrower died or the lender.
T. Kalaiselvan, Advocate
(Expert) 17 November 2014
Expert Mr. Sudhir Kumar may note that the author has very clearly stated in his post that the lender has passed away.
A demand notice on behalf of the legal heirs may be issued to the borrowers after which proper legal action can be initiated.
