Hello Sir, My father has taken few unsecured business loans and we are not aware about his business or what's happening with his business and we were never involved in it. Me or my mother is not even partners. It's a proprietorship firm just on my father's name. Since he is not a calculated person and wasting money on bad habits, we have already given a public paper notice few years ago not to give any debts to him and we are not responsible for his debts if someone lends him money. Now my father has committed suicide because of unable to repay the debt and one of the finance agency mentioned that my mom is the co-applicant and they are asking to send the Aadhar copy of my mom and a copy of bank account as they want to apply for insurance claim. My mom never signed any application for any loan as co-applicant. Should I send the copy of aadhar and bank passbook to them ? I feel they are trying to include her as co-applicant to recover the loan later incase insurance may reject the claim as suicidal death. Please help. Can they really include my mom now as a co-applicant ? We have only single house and it seems they are trying to recover loan by suing on it which is a joint self acquired property of me and my mom. As the outstanding amount is around 1L, do they really go to court on it for this less amount ? And other loans which my father has taken also under 5L and all of them are unsecured business loans. Do these finance agencies approach court to recover them by adding my mom as co-applicant ? What are the chances that they can do this fraud ? I am very much worried.
If your mother was not the co applicant for loan then never send such details. It may be a trap to implicate her as co borrower so that they can pressurise your mother through lawful means to repay the loan of your father.
For unsecured loan like this one they cna no go after the house of you after the death of your father.
So ignore such calls. They are short of any legal remedy to recover this loan.
Hello Sir, Thanks for the response. But they are asking the document to claim the insurance as a nominee of my father. They are saying that they can close the loan if the insurance gets approved. Since my mother is nominee, they stated that insurance companies ask for the documents and they credit the amount to the nominee and then we have to pay that to close the loan.
The version of the creditor seems to be misleading and not reliable at all. Ask for details of the Insurance claims from them first.
Your mother cannot be included as co applicant after father demise
don’t send documents sought by bank
you are not liable for your father debts if you have not inherited any property from father
Ask them to give in writing that they will not mane any claim for recovery of loan amount from mother
Hello Sir, Thanks for the suggestions. As you mentioned that "you are not liable for your father debts if you have not inherited any property from father", I want to ask you one more thing because I have got some property from my father as gift deed. "One and half year ago, my father has gifted me 1.5 acres of agricultural land which is located in my village. Actually that was the self acquired property of my grand father and after the demise of my grandfather, my father and his brothers did a partition of my grandfather's property. And so my father got his share of 1.5 acres of land on his name. But since it's a property of my grandfather, we asked him to transfer the property to me as I don't want to keep it on my father's name as we know he may sell it without our notice. After lot of request, he made a gift deed and transferred it to me. Now am I liable to pay the loans to the extent of this 1.5 acres of land as I have inherited from my father ? Don't I have full rights on that property as the gift deed was done one and half year before my father's demise ? Can the finance agencies attach that property for recovery of their loans ? Also 4 out of 5 loans he taken are taken after the date of gift deed ? So is that land still be liable for his debts which are taken after the gift deed date ? How can I safeguard that land from them as its my grandfather's property and his wish was also to give that land to me only ? If I am liable, do complete 1.5 acres of property be liable or do I get my separate share out of it as it's not my father's self acquired property ? I heard somewhere that grandson will be eligible to get half of the share from the property that son received. So even if its liable, only 0.75 acres is liable as other 0.75 acres is my share from my grandfather property ? Please help me how can i safeguard that property or at least half of that 1.5 acres."
you are liable to pay loans to extent of 1.5 acres inherited from your father
2) creditors will have to take proceedings to set aside gift deed if done to evade creditors
3) if 4 loans were taken later your property would not be subject to attachment
4) sell the agricultural land at the earliest
Your mother should not give the details of aadhar card or the bank account and issue them a legal notice to not to contact her for any reason because she is not the borrower.
Neither your mother nor you are responsible to repay the loan availed by your father in his individual capacity.
The lender financiers are trying to trap your mother to somehow recover the loan amount.
If you people do not inherit the properties lying on your name then you both are not liable to repay the loan amount.
The house property on joint names of you and your mother cannot be touched by the finance company.
Life insurance death claim amount will not be considered as an individual assets of your deceased father, the claimants are entitled which will become their own assets subsequently.
The borrowers cannot do anything to compensate the loan amount with the insurance amount
,They cannot claim any amount out of the death claim amount, if your mother is a nominee then she can claim the amount from the insurance company directly, and she is not liable to pay the creditors the debt amount amount.
Let your mother not divulge any details for whatever reason it may be.
You can approach the insurance company directly and fill up the claim forms. If the policy is more than one year then the suicide clause will not be operative and the insurance company has to settle the death claim amount to the nominee.
If you have inherited any property from your father out of his assets after his death then you are liable to pay the loan to that extent, this gift deed was executed by him long ago hence it will not be considered as an inheritance.
Hence the finance companies cannot attach this property, you remain silent about it without even discussing about it with anyone.
- As per law, if the debt is purely personal debt of the father, then it cannot be passed over to the legal heirs.
- Further, they cannot get order of attachment property of son of family members for the debt of your father, because father and son`s assets will be treated as their respective separate properties.
- However, if you got property of father both movable or immovable properties through inheritance then only, your liability to pay the debs, after selling those inherited property.
- Since, your father has committed suicide due to pressure and threatening of the financial , hence you can lodge a complaint before the police and higher official against the said finance company for the offence of abetment to commit suicide.
- Further, if your mother has not signed any agreement with the said finance company, then you must not provide any documents , otherwise it may misused by the said company.
- Further, the limitation period for the recovery of loan amount is limited to 3 years.
- If you has got property from your father , then you can transfer it in the name of your wife or other as a safeguard.
Dear Client,
From the loans your father borrowed, it is noteworthy that they borrowed under a proprietorship firm in your father’s name then you or your mother cannot be held responsible for those debts if you or your mother did not co-sign for the loans or were not involved in the signing of the loans. In India, The Hindu Succession Act, 1956 lays down the law of inheritance of property and according to the section 6 of the act, the heirs cannot be held responsible for the payment of the deceased’s debts if they stand to inherit something from him. The notice you published in the newspaper to searching anyone to blame for your father’s debts also do support your defense that you are not responsible. If your mother did not sign any of the documents as the co-applicant for the finance company then you cannot make her responsible for your father’s loans. The finance company which is seeking your mother’s Aadhaar and bank details may be trying to falsely intimate her as co-applicant which is illegal.
The property transferred to you by your father, that is, the agricultural land are governed by the Transfer of Property Act, 1882. The gift deed that had been prepared and registered prior to your father’s demise, you and your siblings therefore qualify as legal. A valid gift is done irrevocably and when the property is conveyed, it becomes the donee’s self acquired asset. If, in most cases, the loans were obtained after the preparation of the gift deed then such loans cannot be used to touch the property in question. Further, it is a well-known fact that the land was your grandfather’s self-acquired property and was legally demised to the defendants and hence the piece of land you got through the gift deed of 1.5 acres belongs to you. In other cases, the finance agencies may attempt to seize this property. But if the transfer was carried out bona fide and long before any question of debt was contemplated then you have excellent legal perspective.
Any loans which may have been received by the beneficiaries after the gift deed had been prepared should not be recovered from the property. As we have seen the property is now your self-acquired property, all the 1.5 acres should be protected and not half of it. The concept of splitting it doesn’t apply because after the gift deed only you stand as the owner of the house. Use of the gift deed in exchange for the money can also be actionable in case of any legal on the property because according to the Transfer of Property Act, gift deed is legal. You can also initiate a case where you seek an order of perpetual prohibition which will restrain the creditors on the property.
