A pensioner of State Government who is alone and whose wife is also employee of Electricity Board died and who is sick has taken loan from another and is not able to repay it. Further, the creditor has rendered services to the debtor for long period and attending to his medical needs. The debtor pensioner in consideration of the services rendered by the creditor proposes to execute an Assignment Deed cum GPA in favour of the creditor assigning in his favour the amounts of terminal benefits of his deceased employee wife in consideration of his services rendered by him / creditor to him / the pensioners and also to recover / adjust out of the same, the outstanding debt together with interest. The sick pensioners proposes to execute Assignment Deed cum GPA to enable the creditor to pursue with the Electricity Board for realization of the amount of terminal benefits of the late wife including power to sue the Electricity Board. The idea is that even if the creditor / pensioner dies, the creditor will continue to have power and authorisation to recover the terminal benefits of the wife of the creditor from the Electricity Board and to realise his outstanding dues from the pensioners either during his life time or after the death of the pensioner / debtor. I think the proposed Deed of Assignment cum GPA is legal and enforceable. Any suggestions on this please.
Thanks,
M R Ghodkar, Advocate
