Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Succession

Querist : Anonymous (Querist) 05 January 2011 This query is : Resolved 
my father was having a case with a bank over default of home loan... after the death of my father & the garentor
the bank took possesion of the property and they filed a subsitution application in court to subsitute the name of myself , my brother and my sister.( mother has already passed and we have not inherited any thing from our parents).

though we have not inherited even a penny... a policy of my father in which my mother was a nominee had been claimed by my sister and me & my brother gave NOC..

1- i want to know whether it will count under inherting property

2 - in this case for whom it will count
n.k.sarin (Expert) 05 January 2011
Mr anonymous presentation of substitution application after the death of loany and guarantor is a general procedure.Be care full you and other heir must present before the court and submit your reply as you mention above that you and other heirs not inherited even a penny etc.As far as the policy is concerned in my view if it is matured due to the death of your father it is not inheriting property, if it is matured before the death of your father then it is inheriting property .
Y V Vishweshwar Rao (Expert) 06 January 2011
You are impleaded as Legal heirs of Borrower in the Suit filed by the Bank against your father /Borrower in House loan Case-Civil Suit-pursue the Suit till last proceeding! if the House is sold for recovery of due amount -verify for what amount it is sold with reference to value of the Property - If the Value of the property is more and loan liability is less - pay the due amount and get release the Property and claim the same as successors -as owners of the property !
R.Ramachandran (Expert) 06 January 2011
Dear Anonymous,
As rightly pointed out by Mr. Y.V.Rao, you and your sister have been made Legal Heirs (in fact you are legal heir of your deceased father) to recover the bank dues from you after your father's death. This is on the legal principle that the legal heirs inherit the property of the deceased father. (It does not mean that you have already inherited any property - rather it only means that you are legally entitled to inherit the properties - movable and immovable left behind by your deceased father).
If any of the property has been acquired (in this case the house) by borrowing money and the said loan had not been repaid, then the lender has the right to recover the same by selling the properties of the deceased borrower.
Since you are the legal heirs of the deceased person and legally entitled to inherit the same, you will definitely object if the bank tries to sell the same to satisfy the outstanding bank loan.
Therefore, it is necessary for the bank, to get you as party to the Money recovery suit (as legal heirs of the deceased borrower).
You have two options - (i) pay the outstanding loan amount along with interest - either through the EMI which your father used to pay - or in lumpsum and keep the property with you the children of the deceased. or(ii) if you do not wish to do suggestion (i) above, then the bank would be allowed to sell the properties and after adjusting the outstanding loan amount if any amount of the sale proceeds is left with the bank, as advised by Mr. Y.V.Rao, you can claim the same from the bank as legal heirs of the deceased father.
Kirti Kar Tripathi (Expert) 06 January 2011
I agree with Mr. Ramachandran, He has explained the query in nice way.
Amit Minocha (Expert) 06 January 2011
Mr. Ramachandran has explained the query rightly .


You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :