Guarantee

If the principal borrower dies, Bank can proceed against his estate only, the legal heirs of the principal borrowers are not personally  liable to discharge the debt borrowed by principal borrower. I am of the opinion that the limitation period for the recovery of money is three years.

 

The lender can proceed to recover from estate of deceased borrower, co-borrower, guarantor, sureity, legal heirs per facts of the matter..

If there have been life insurance policies in the name of borrower or one attached with loan to cover the debt use the same to set off the debt.

Look into 3Y from each advance made, admission of debt, and in case of waiver of default the date on which last installment was payable…

On isues on liability of legal representatives and limitation go thru applicabl enactments and some judgments also and relate with your matter;

e.g;

THE LIMITATION ACT, 1963: 18, Article 37

Delhi High Court

Kamal Gupta vs Bank Of India on 1 November, 2007

Equivalent citations: AIR 2008 Delhi 51

Author: M Sharma

Bench: M Sharma, S Khanna

Delhi District Court

21 vs Sh. Darshan Singh (Deceased) on 14 July, 2009

Author: Sh. Rajiv Mehra

Punjab-Haryana High Court

Official Liquidatior, Punjab ... vs Mohan Lal And Anr. on 27 September, 1977

Equivalent citations: 1978 48 CompCas 271 P H

Author: H Lal

Bench: H Lal