Liability transfer
Sanjay Kulkarni
(Querist) 26 October 2015
This query is : Resolved
Friends, I need advice/opinion on following situation. A father had taken vehicle loan from a finincial institution. He had given auto debit authorisation from the firm account. He died before the vehicle was permanently registered.His widow and 3 sons continued the family business. The repayment of loan is continued from firm account. Vehicle insurance is discontinued as per advice/ill advice by insurance agent. The legal heirs wants the outstanding loan to be transferred in the name of anyone among them. The financial institution is refusing to transfer the debt and asking to repay loan in one go. The legal heirs are deprived of using the vehicle.
What remedy available available to the legal heirs? Is the stand of the financial institution correct?
Anirudh
(Expert) 27 October 2015
It is not clear whether the loan was taken in the name of the Firm or your father's individual name?
If it was in his individual name, then how the Firm's account can be debited?
When you say Firm, who are the partners of the said Firm?
How many partners are there in the Firm after demise of your father?
When the Firm is continuing, and when the loan is being repaid by the Firm, why do you want the loan to be transferred to any one of the sons of the deceased partner? You have to come out and explain, so that one can examine the issue and try to explain to you the real issues involved.
The bank is not obliged to accept your request. The stand of the bank is legally quite correct.
P. Venu
(Expert) 27 October 2015
What do you mean by "The legal heirs are deprived of using the vehicle."?
Rajendra K Goyal
(Expert) 27 October 2015
Author need to reply the questions from expert before any advise can be given.
alexander
(Expert) 27 October 2015
who has the custody of the vehicle. If it in your firm's possession who is preventing you from using it ( lack of insurance?).After the financial institution gets its money ,it shall be out of the picture . You can then approach the RTO for transfer the vehicle on any of the legal successors of your late Father. As a matter of fact you can apply to the RTO for re-registration of the vehicle in any of the legal successor's name so that the vehicle could be insured for putting it on road again
The tehsildar or the SDM is competent to issue a legal successor certificate on completing a few formalites.
Sanjay Kulkarni
(Querist) 27 October 2015
Father was sole proprietor of the firm while giving authorisation.
What would be the implecation if the vehicle meets with an accident?
Possession of the vehicle is with legal heirs in joint.
There is no dispute among legal heirs.
Sanjay Kulkarni
(Querist) 27 October 2015
If the vehicle is to be transferred in the name any one of the legal heirs, what is the procedure.
Dr J C Vashista
(Expert) 27 October 2015
What is the actual problem? The query is vague.
You want to know about the inheritance of the vehicle vis-a-vis loan or regarding insurance/accident claim of the vehicle?
Sanjay Kulkarni
(Querist) 28 October 2015
Dear, Dr J C Vashista sir, that's exactly what I want.
K.S.Srinivas
(Expert) 28 October 2015
When the vehicle is purchased in the name of the firm, then the firm is responsible for everything.
Sanjay Kulkarni
(Querist) 29 October 2015
Vehicle is in name of father and repayment is from firm account of which he was proprietor
T. Kalaiselvan, Advocate
(Expert) 01 November 2015
If the loan was on individual's name, it cannot be transferred on the legal heirs name, it is the discretion of the financier, he may refuse it. So better repay the entire loan at one go, get the vehicle transferred on one of the legal heirs and now arrange for HP on the subsequent individual's name or even on the firm's name.
