Son liability in father's debit

karan (Querist) 06 October 2015 This query is : Resolved
My Father who works for a reputed company got into debit.
He borrowed money to start chitfund many years ago and got into losses.
To cover the losses he borrowed more money from more people and started paying interest (He took money from lot of people at a different interest rate (2%, 3% & 4%) by providing a Promissory note to them.)
He has been paying interest to each of them for many years (He paid so much interest over the years that its almost double the principle amount)
Most of the lenders are from his office and now started asking him to return the principle amount as he would get retired in this year.
Now he has sold everything (House, PF, Savings) and left with nothing to pay the principle amount.

I or my Mother did not have any clue about his loans until the end.
Lenders started threatening us for money.

I know my Father has made a mistake and he agrees that he is responsible for this situation.

Please guide me how to come out of this situation.

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Kumar Doab (Expert) 06 October 2015
It is believed that you are Hindu, and your father is alive.

As per title of the query 'Son liability in father's debit'.................and Hindu Succession (Amendment)Act,2005 the son is not liable.

The debt can be recovered from estate of the borrower.

As per your father has paid double the principle and has signed some promissory note.

It is not clear that you have the copies of promissory notes, and proof of having made the payment or not.

Record the threats (audio/visual/witnessed).

Approach an able lawyer ASAP with whatsoever documents and record you have and proceed further under expert advise of your able lawyer.

Rajendra K Goyal (Expert) 06 October 2015
If any case is filed, defend with the help of a lawyer.

For threats, lodge complaint with the police.

karan (Querist) 06 October 2015
Thanks for the prompt response.

As he is guilty of not able to repay the amount, Please let me know what could be the severity of the punishment?

Guest (Expert) 06 October 2015
Consult A Local Good Advocate and Let Your father File the" Insolvent Petition" in Court.Better See that he Does Not Issue Any Cheque to any one to avoid any Harassment which would Invite him for More Troubles.Consult A Local good Senior Advocate Or Free Legal Aid Forums in all the Courts.Take Care.

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