Children liable for parents debt
Jinesh
(Querist) 20 April 2013
This query is : Resolved
Sir, My father had two brothers and we lived in joint family. My father's elder brother handled everything as a head of family. He took loans from banks in the name of different family members. He took loans on my the name of my mother and father. but they are unable to repay it. Actually they not get a single rupee from that loans but name was their so they are defaulter now. When they did this, me and my brother was minor and now we both are working and managing ourselves gradually. My father has nothing to give us as we are heirs. Are we liable to repay that loan? What should I do? Please Reply.
Thank You sirs for your humble reply.
Mr. Prabhakar Singh:
One of the Loans is taken on 27/11/1996 and from criminal court one decision document was there that you have taken loan on this date of this amount and on 18/12/2003 due amount is this. you have to present within 10 days.
But my father has not payed anything. And I heard that that bank's licence is going to cancel by RBI. Its a co-operative bank. and after this date 18/12/2003 no communication from bank.
Mr. Kumar Doab : What if loan is taken before 2005?
Kumar Doab
(Expert) 20 April 2013
You have posted that:
“My father has nothing to give us as we are heirs. Are we liable to repay that loan?”
If the son inherits estate of father he is liable to that extent only. It is obligation to pay the decreed debt out of the estate of the deceased and not out of personal assets of the legal heir.
If your father availed loan after year 2005 and If you are Hindu, the amendment as given below should offer you reprieve.
Hindu Succession (Amendment) Act, 2005
(4) After the commencement of the Hindu Succession (Amendment) Act, 2005, no court shall recognize any right to proceed against a son, grandson or great-grandson for the recovery of any debt due from his father, and father or great grandfather solely on the ground of the pious obligation under the Hindu law, of such son, grandson or great-grandson to discharge any such debt...................
Valuable advice of learned experts is sought.
Devajyoti Barman
(Expert) 20 April 2013
It it is not secured debt, the legal heir is not responsible for the debt of his predecessor in interest.
Son's pious liability to repay debt of his father is no more in force in India.
prabhakar singh
(Expert) 21 April 2013
"He took loans from banks in the name of different family members. "
THIS CAN NEVER HAPPEN PRACTICALLY.
Banks would never lent in such a fashion.Different family members
must have signed documents of loan
and loans would showing debits in
their name and not in 'HIS' name.
Banks have lended to your father and
mother.
QQQ@ Are we liable to repay that loan? What should I do? Please Reply. ????
To ANSWER this part of your query you need to tell the date of loans.And also is there any recovery suit already filed then at what date?
ajay sethi
(Expert) 21 April 2013
agree with experts
malipeddi jaggarao
(Expert) 22 April 2013
As Mr.Prabhakar Singh rightly said, unless the loan documents are signed, banks will not give loan. Though the other person manages preparation of documents with the consent of your parents or family members, and he has utilized the money, it is the liability on the part of the persons who signed the documents and in whose name the debt is created. Hence, you have to take out of your mind, that your parents/family members are not liable. For answer to your remaining part of the question, please refer to the advices of the experts given above.
Jinesh
(Querist) 22 April 2013
Thank You sirs for your humble reply.
Mr. Prabhakar Singh:
One of the Loans is taken on 27/11/1996 and from criminal court one decision document was there that you have taken loan on this date of this amount and on 18/12/2003 due amount is this. you have to present within 10 days.
But my father has not payed anything. And I heard that that bank's licence is going to cancel by RBI. Its a co-operative bank. and after this date 18/12/2003 no communication from bank.
Mr. Kumar Doab : What if loan is taken before 2005?
Jinesh
(Querist) 22 April 2013
Thank You sirs for your humble reply.
Mr. Prabhakar Singh:
One of the Loans is taken on 27/11/1996 and from criminal court one decision document was there that you have taken loan on this date of this amount and on 18/12/2003 due amount is this. you have to present within 10 days.
But my father has not payed anything. And I heard that that bank's licence is going to cancel by RBI. Its a co-operative bank. and after this date 18/12/2003 no communication from bank.
Mr. Kumar Doab : What if loan is taken before 2005?
