You are liable for your father debts only to extent of your inheritance 

2) if you have not inherited any assets you don’t have to pay your father debts 

3) nominee is only trustee for legal heirs . Obtain NOC of other legal heirs for transfer of money in bank accounts 

4) bank may  insist on succession certificate for transfer of money lying in bank accounts 

1. It can be done if all other legal heirs agree to transfer the current business name of SL Industries by executing a registered Release Deed relinquishing their individual rights over their deceased father's business in your favour by registering the Release Deed in the jurisdictional Sub Registrar's Office.

2.  Based on above, furnish a copy of the Release Deed to the Bank and in this way the existing account can be continued.

3.  For clearing the debts, it depends on the agreement signed by your deceased father and the creditors. If in the agreement there's anything in writing that legal heirs are to clear the loan, then only the liability of loan has to be borne by the legal heirs. However, unless and until the documents are scrutinised, a correct opinion can't be arrived.

4.  Whether the legal heirs have to clear the debt or not can only be decided after scrutinising the connected documents.

1. Yes if other heirs give no objection.

2. It can be done only if the a/c was run in the trade name of the business and other legal heirs give no objection.

3. For unsecured debt legal heirs are not personally liable.

4. In a pending case you would be substituted as legal heirs. 

In case of death of the sole proprietor, his legal heirs can legally continue the business but other legal compliance, either fresh firm will form or legal heirs will replace. 

You have to apply in same office which have issued certificate enclosing death certificate and legal heir certificate if required by authority.

In case of death of sole proprietor, if the business is continued by any person being transferee or successor of business, it shall be construed as transfer of business.

Transfer or change in the ownership of business will include transfer or change in the ownership of business due to death of the sole proprietor.

A  circular issued by the Central Board of Indirect Taxes and Customs (CBIC) mentioned that the transferee or the successor, will be liable to be registered with effect from the date of such transfer or succession, where a business is transferred to another person for any reasons, including death of the proprietor. 

In case of death of sole proprietor, if the business is continued by any person being transferee or successor of business, it shall be construed as transfer of business. 

Further, such persons would be required to pay all liabilities due from them for the relevant period in case they apply for revocation of cancellation of registration.

Sole proprietors are personally liable for the debts and obligations of the business. Creditor claims against the business would typically need to be brought against the original sole proprietor’s estate, but choosing to continue operations could expose the successor entrepreneurs to liability for claims that arose when the original sole proprietor was alive.

Sole Proprietorship exists as long as the Owner is alive. A Sole Proprietor is a business owned by one person and has unlimited Liabilities, he can sue or be sued in individual’s own name, can own property if individual has legal capacity owner personally liable for debts and losses of business. Whatever the Sole Proprietor owns as a business sole proprietor is treated as his personal assets and will be distributed according to his/her Will or under the rules of Indian Succession Act. The business assets that can be transferred will be passed on to the deceased Sole Proprietor’s beneficiaries under the law.

In fact, the business and the man are the same, it does not have a separate legal entity. When a sole proprietor dies, all of his assets and liabilities become part of his estate, including the assets and liabilities generated from the business activity. After the death of the Sole proprietor his assets are equally distributed to his legal heirs. Remember, registrations such as service tax, PAN and other governmental requirements will be either in your father’s name or in the name of the firm. In either case only your father is responsible for both. For unsecured debt legal heirs are not personally liable.

The death, retirement, bankruptcy. insanity, imprisonment etc will have an effect on the sole proprietorship. In such situations, the proprietorship will cease to exist and the business will come to an end. In cases of death of the sole proprietor/all partners, reconstitution may be made in favor of the legal heir(s)/family members(s) with the consent of legal heir(s).

Please do understand that reconstitution of sole proprietorship on the death of the sole proprietor can be permitted to be made in favour of the legal heirs/family members only with the consent of all legal heirs.

Consent letter along with legal heirship certificate is enough for using the business accounts.

1. The name can be transferred by executing an agreement between all Class 1 heirs if he passed away intestate.

2. The bank account can then also be transferred.

3. Since you have inherited the business of your deceased father the creditors can enforce the debts against you. So you are liable to clear those debts.

4. Speak to the lawyer whom your father had engaged for defending the case filed against  him.

Dear Sir,

 My answers are as follows 

1) can we get his business name(SL Industries) transferred 
to one of the legal heirs if so what will be the process 
Ans: Yes 


2) Can we also get the existing bank account transferred 
to one of the legal heirs name, we have nomination on the 
account but we really don't want to close the account as 
that business has some credits to receive from market
Ans: Yes

3) At the same time we also have some debts, as legal 
heirs do we need to clear this business debts this I am 
asking because if we decide not to continue this business 
in the same name so we will also try and forget debts and credits.
Ans: It goes according to your mutual settlement.

4) One of the supplier had a existing court case with 
my dad he already send us a notice and said we as 
legal heirs we have to clear the debt because that is 
what was decided between them when my father was alive, 
I cannot find any legal copy in the emails between my dad 
and this supplier.
Ans: You must deny and fight in the court and court will decide.

Dear Sir,

1) Yes the business can be transferred to the legal heirs name, after undertaking the required legal proceedings.

2) The nominee is trustee of the heirs of the account holder he can get the money transferred to his account but other heirs have right to claim their share in such assets.

3) You as legal heir are liable only to pay the debts to the extent of your inheritance and if you have subscribed as guarantor to any such debts taken by your father.

4) The legal heirs will have contest the pending cases in place of father, get in touch with the lawyer of your father to peruse the relevant documents of the case and contest the same.

Thank you

1. Yes, you can convert the firm name as after the death of your father the firm ceased, and you can apply for the same before the competent authority 

2. Bank account in the name of firm or father cannot be transferred , and  a new account should be open .

3. If you will continue the business in the same firm name , you will be accountable for the debt of your father legally

- However if you changed the name , then you will not responsible for the said debts.

4. If that case was against the business of your father and not personal , then the legal heirs are not responsible for the payment .

- You should change the firm name with a new name , then that creditor will not recover amount from you under the sole proprietorship business.