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Prabhakar (proprietor)     01 December 2014

Consequence of one brother's loan on another

My friend's brother had taken a loan from a nationalized bank several years ago. Since the business failed very badly, he was in no position to return it. Meanwhile, he happened to go through an inter-religion marriage because of which he kept himself aloof and didnt contact much of his friends and family since it had created lot of animosity on both sides.


Due to the failure of repayment, the bank kept sending notices which couldnt be delivered to the defaulting brother because his whereabouts were not known. Now, an attachment notice has been sent wherein if he fails to appear within a week, the property of the guarantor (his Late father) will be attached for recovery. Both the parents of my friend have passed away recently. The property is to be transferred to my friend, but the formalities are yet not complete.

It is impossible to get the message across to the defaulting brother and cause him to appear within a week. As a consequence, my friend is fearing losing the property that he was about to inherit.

What legal options are open in this regard ? Thanks a lot for your help.

 



Learning

 2 Replies

Anand Bali Adv. (Advocate Solicitor & Consultant)     02 December 2014

Dear Friend,

The the factual condition of the case is that your father during his life time has given the guarantee against the loan granted by the bank to his son, your brother who is now absconding and is not in position to attend the hearing.

Your position to inherit the property comes only after the situation if there is no lean or liability is created on the property, So in this situation your right to inherit the property comes after the realisation of the loan amount from that property going by its auction and only then after  if there any thing left you can inherit that 1/2 only leaving 1/2 for the brother's share. As the unpaid liability of your brother's loan comes second on the guarantor's head and if he is dead his legal heir apparent has to repay that burden in case he inherits his ancestor's property because rights and liabilities go side by side which can not be denied by any Law.

T. Kalaiselvan, Advocate (Advocate)     05 December 2014

Upon default in repayment of loan amount, the bank has full rights to attach the properties of the guarantor, thereby either try to trace out the defaulter or challenge the bank's action legally on the basis of legal heirs of the guarantor by obliging the liabilities of the guarantor in order to avail the benefits of the deceased.


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