Bank loan

siddhartha shankar Mahapatra (Querist) 06 July 2014 This query is : Resolved
borrower husband a govt.service holder availed bersonal loan from bank for repairing of house paid some installments but defaulted and died subsequently leaving behind his wife got service benefit of husband.Bank filed case against wife for reconvery of loan of her husband. Is wife liable or not?

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Devajyoti Barman (Expert) 06 July 2014
Wife is not liable since it is not secured loan.

P. Venu (Expert) 07 July 2014
Wife is liable to the extent the estate she had inherited from her husband. However, the service benefits which she received in the capacity as widow does not form the estate she had inherited.

Arvind Singh Chauhan (Expert) 07 July 2014
Agree with P Venu Sir

Guest (Expert) 07 July 2014
Mr. Mahapatra,

You may better check the contents of the agreement also, as made by the deceased employee with the bank while taking loan.

As an advocate, if you fight the case merely by linking her inheritance of any estate but without going through the contents of the loan agreement of the deceased, you may probably lose the ground, as the bankers and financial institutions usually bind the heirs, individually and severally also, of the applicant for the liability of the deceased. So, irrespective of whether his wife has inherited any property from her deceased husband, she would still be liable to pay the dues of her husband.

Advocate. Arunagiri (Expert) 07 July 2014
I agree with Adv.Mr.Venu on this point.

Rajendra K Goyal (Expert) 07 July 2014
Agree with the advise of expert P Venu ji.

ajay sethi (Expert) 07 July 2014
agree with Mr venu

T. Kalaiselvan, Advocate (Expert) 07 July 2014
The personal loan availed by the deceased i the capacity of his employment. The bankers could have approached the employer with the claim towards the balance of loan and its interest amount. The terminal benefits in the hands of widow of the employer cannot be attached by the banker towards the repayment of personal loan availed by the deceased. the inheritance of intestate property of the deceased by his legal heirs in common can be made liable towards the repayment.