Father's bank loan debt
Renjith
(Querist) 29 December 2015
This query is : Resolved
I am facing one serious concern from the bank, that my father had taken a loan from Canara Bank in 2005 for business purpose. unfortunately collapsed all the business and it turned to become his death as well. We were living rented house and studying as well at that time. I got a job in gulf after and i bought a house in my name.Recently(after 10 years)bank manager came to our house and talking about fathers debt and warning us that the liability will recover from our house. is it possible? i didn't get any fathers property (he lost everything in his business) i bought it myself? Kindly advise me what to be done in this situation
Advocate Kappil Cchandna
(Expert) 29 December 2015
Sir,
Are you Hindu? Can you provide me the date of the actual loan when it was taken?
Warm Regards
Kapil Chandna Advocate
9899011450
SAINATH DEVALLA
(Expert) 30 December 2015
Banks and other financial institutions cannot force the heirs to pay the liability of the deceased person,unless any property is given as collateral security.But after 10 years the loan is time barred as limitation act comes into picture.
P. Venu 
(Expert) 30 December 2015
You are liable for repayment of the loan only to the extent of the estate you had inherited from the father. However, the sureties are fully liable and Bank can move against them, unless the recovery is barred. In such an eventuality the children have the moral obligation to clear the debt.
Renjith
(Querist) 30 December 2015
Yes. I am from hindu religion.
The loan was taken on Nov 2015.
I hadn't inherited any estate from my father.
the asset which i have is bought my self.
SAINATH DEVALLA
(Expert) 30 December 2015
U an be assured that the bank cannot touch any properties bought by U.
When was the last instalment paid by UR father,do U remember?
Renjith
(Querist) 30 December 2015
we requested them to give all the details but they denied and said all the documents has been given to the court
SAINATH DEVALLA
(Expert) 30 December 2015
One thing is the loan is time barred as of now.The bank had it proceeded legally during the limitation period,would have certainly given legal notices to the borrower or his family.Even within the limitation period first it becomes NPA,even then if the borrower does not respond the case will be referred to DRT if it is an unsecured loan.Legal action will be taken through court only on secured loans.
If the version of the bank is true wait till U(the legal heirs) receive any communication from the court regarding the case.
Rajendra K Goyal
(Expert) 05 January 2016
Whether loan was taken in 2005 or in 2015 as mentioned by you? If it was taken in 2005 and no liability papers were signed by the legal heirs in last three years, loan is time barred.
