House ownership

Dear VIJ.........

If you admit that you have taken loan from your relative and created second charge over the property, then it is required to pay him the amount borrowed with interest or in the event of not admitting it, there will be no liability for repayment.

It is a moral responsibility to discharge the loan taken by you.

True it is Moral Responsibilty.  But what is the legal position here?

There is no second charge created over the property but the amounts can be recovered by way of a recovery suit and attachment of property may be sought for enforcing recovery. Any such attachment is subject to first charge of bank.

The stamp paper document can be used as proof of debt subject to limitation. 

I AGREE WITH THE CONTENTION OF Mr. KUMAR TVS

Dear all,

Thank you very much for the clarification. However, would be very helpful if you clarify me whether the Rs.20 stamp paper i signed is sufficient proof of admission of loan even though that stamp paper is not registered.