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piyushverma (private job)     26 August 2009

theory of pious obligation

Please read the following to get the picture of my problem:
my father was in the habit of taking loans from private money lenders and banks to give shape to his unrealistic dreams.
myself and my brother tried to stop him from all this but he never listened to our suggestions.
between 2002to2005 we were in serious trouble as private money lenders started threatening us when our father was absconding.
myself and my brother sworn in an affidavit in front of a notary advocate that"we have no relation with our father and if any individual or organisation enters into any financial contract with him they may do so at there at own risk"
my father died in july 2007 and at that time he was heavely indept.
however we were able to save ourselves from private money lenders.
between july 2007 tojuly 2009 there was no communcation with any bank.
We made no claim over any property left by our father.
but recently my unmarried sister applied for family pension of my father.
after this a nationalised bank send us summon through a civil court.
the bank has taken this step when they have auctioned the property.
my question is that "do we become liable to pay the bank dues of our father"?even when we have not claimed any property left by himand the bank has auctioned the property.

the lawer to which i am consulting says that under the theory of pious obligation in hindu law ,sons are liable for the debts of deseased father irrrespective of inheritance.



Learning

 5 Replies

A V Vishal (Advocate)     26 August 2009

"The doctrine of pious obligation under which sons are held liable to discharge their father's debts is based solely on religious considerations; the doctrine inevitably postulates that the father's debts must be vyavaharik. If the debts are not vyavaharik or are avyavaharik the doctrine of pious obligation cannot be invoked." The principle relating to the liability of the sons for debts incurred by the father may be briefly recapitulated.

# In respect of debts contracted by the father, even for his personal benefit, at a point of time when he is joint with his sons, the sons are liable to pay such debts, unless the debts were incurred for immoral or illegal purposes.
# This liability of the sons, which had its origin in an obligation of piety and religion, has since metamorphosed into one of legal liability but this 'does not, however, extend to debts tainted with immorality.
# The liability is not, however, personal in the sense that the creditor of the father cannot proceed either against the person or separate Property of the sons, but such liability is Restricted to the interest of the sons in the family property.
# It is settled that if the debt is contracted by the father after partition, the son cannot be made liable
# If, however, the debt is a pre-partition debt, the share of the sons would be liable even after partition, if the debts of the father are not immoral or illegal and the partition arrangement does not make any provision for the discharge of such debts.
# In case a creditor institutes a suit for the recovery of a debt against the father before partition and obtains a decree, the sons would be liable to discharge the decree passed against the father even after the partition.
# Even in respect of a pre-partition debt, if a suit is instituted against the father, after partition, but he dies and his separated sons are impleaded as legal representatives, the remedy of the decree-holder against the shares allotted to the sons on partition, would be in execution and not by way of an independent suit.
# If, however, after partition, a suit is instituted against the father on a pre-partition debt and a decree is obtained against him, such a decree cannot be executed against the sons and a separate suit has to be brought against the sons in order to enable creditor to realize the amounts out of their shares.
Thus the liability of the interest of the sons in such cases to discharge the debts incurred by the father is undisputed, though the method and manner of its enforcement by the creditor would vary and the sons must be afforded every opportunity, be it in a suit or execution proceedings to question the binding nature of the debt' or liability.

After the commencement of the Hindu Succession (Amendment) Act, 2005, no court shall recognize any right to proceed against a son, grandson or great-grandson for the recovery of any debt due from his father, grandfather or great-grandfather solely on the ground of the pious obligation under the Hindu law, of such son, grandson or great-grandson to discharge any such debt.

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A V Vishal (Advocate)     27 August 2009

Provided that in the case of any debt contracted before the commencement of the Hindu Succession (Amendment) Act, 2005, nothing contained in this sub-section shall affect-

(a) the right of any creditor to proceed against the son, grandson or great-grandson, as the case may be; or

(b) any alienation made in respect of or in satisfaction of, any such debt, and any such right or alienation shall be enforceable under the rule of pious obligation in the same manner and to the same extent as it would have been enforceable as if the Hindu Succession (Amendment) Act, 2005 had not been enacted.

Explanation.-For the purposes of clause (a), the expression "son", "grandson" or "great-grandson" shall be deemed to refer to the son, grandson or great-grandson, as the case may be, who was born or adopted prior to the commencement of the Hindu Succession (Amendment) Act, 2005.

(5) Nothing contained in this section shall apply to a partition, which has been effected before the 20th day of December, 2004.

Explanation.- For the purposes of this section "partition" means any partition made by execution of a deed of partition duly registered under the Registration Act, 1908 (16 of 1908) or partition effected by a decree of a court.'.

piyushverma (private job)     27 August 2009

When did hindu sucession ammendment act 2005came into force

A V Vishal (Advocate)     28 August 2009

The Hindu Succession (Amendment) Act 2005, came into effect on September 9, 2005.

Sandeep (Manager)     01 March 2010

Dear Mr. Vishal,

thanks for such a great advice.

what I came to know is Son is not liable for father's debt in any situation if its been taken after September 9, 2005.

Am I correct.

Hope to hear soon from you.

Sandeep Rao


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