Bank case of legal heir

Hello sir, greetings of the day.
In order to answer your query, there are a few things you must know.  A loan account turns into a Non-Performing Asset (NPA) if the customer fails to pay either the interest or part of the principal or even both. In such cases banks take immediate action to mitigate the issue. They reach out to customers, and provide them with the necessary assistance in order to avoid a bad loan and settle the issue. When the bank notices that the customer is indeed stressed about their financial condition, they provide them with solutions such as offering the option of re-structuring the loan, which helps reduce the Equated Monthly Instalment (EMI) burden on the customer. The banks do file a case against the customers, who have a higher amount pending, under fraud. You can find precedents in cases like Dr. Yashwant Singh & Anr. vs Indian Bank & Anr. on 23 April, 2015.
Hope this solves your query.
Regards
Nirali Nayak
Law Student