Death of proprietor of a firm
Dalip Singh
(Querist) 04 June 2015
This query is : Resolved
Proprietor of a firm died. Firm had been availing term loan from the bank against security of moveable and immovable properties. After the death of proprietor, the surviving members are - wife, married daughter, two unmarried daughter and two minor sons. None of the LRs coming forward to operate the term loan account and the account has become NPA. A suit is to be filed against the proprietory firm but after the death of proprietor there is no firm. How to implead the firm as party when no LR is coming forward to take the liability.
Anirudh
(Expert) 04 June 2015
The proprietor and the proprietory firm are not two different entities. Both are one and the same. The proprietory firm is not a legal entity at all.
Therefore, you have to straight away array the proprietor through the LRs.
Once you file the suit, naturally all the LRs will come and answer before the Court.
Rajendra K Goyal
(Expert) 04 June 2015
Suit is to be filed against the LRs and recovery can be effected from immovable / movable property.
