Non Payment of Personal Loan?
Querist :
Anonymous
(Querist) 07 May 2011
This query is : Resolved
My father had taken loan of Rs. 4,00,000 lakhs in the year 2000 in the local branch of Co-operative bank. For this loan amount there is no property is been plunged as well as no post dated checks also given, I am not sure on what basis such a loan has been given to my father. This loan amount has been utilized for doing a construction work on government contract by my father. On completion of the work, the amount which is supposed to be disbursed by government is not yet done, the payment is been struck in some government department for the past 10 years. My father died in road accident in 2001, after which this loan has been transferred to my mother, she is a housewife and now we are in a situation that we have to repay the loan and its interest almost now around Rs.10,000,000 lakhs. Bank has sent some notification through court to us to appear and we did a no show, however we sent a registered letter as well as telegram to them on we wont be able to attend due to ill health condition of my mother.
Further now, we are not having any property on my mother’s name, we are staying in rental house, with very less income which is just sufficient for our living.
In the above situation, is there any legal action possible from bank? Is there a possibility of getting this sorted out amicably out of court? What if we say we cannot pay the loan and file insolvency? Is there a way we can show the proof that we are yet to receive payment from government on the work completed by my father, and on receipt of the same we will pay the dues?
Guest
(Expert) 07 May 2011
Loan by cooperative banks are disbursed in fixed multiples of the share holding pattern of the member. So, your father would have received the loan on the basis of shares held with him.
It is not understood, under what circumstances the loan was transferred in the name of your mother on death of your mother.
About payment, on failure of the member in payment, an arbitrator is appointed in the case and the case are sent to the arbitrator for arbitration. On not attending the hearings the award of the arbitrator is given ex-parte in favour of the bank.
Still on non-compliance of the award by the member the case is filed in the court of the Registrar of cooperative Societies. You can expect the same fate in that court also if you don't prefer to attend the hearing.
So, it is better to present your case and present the facts to the court about non-receipt of payment from Government department and also that you don't have even any property to sell to repay the loan and get some relief from that court.
Guest
(Expert) 07 May 2011
Rest all depends on the issue of transfer of loan, whether made legally or not, in the name of your mother on the death of your father.
Isaac Gabriel
(Expert) 07 May 2011
Your mother could have been added as guarantor for the loan and some pledge could have been given before santioning of the loan.Pl sheck up with the bank for the full details.In any event, action should be taken within the ambit of cooperative societies actby filing arbitration,when everything would be brought to light.You have not stated the name of the bank.
Guest
(Expert) 07 May 2011
Mr. Isaac,
It is useless to presume anything, unless the author of the question clarifies about the circumstances undert which his mother could be made accountable for the loan taken by his father. May be due to shrewed tactics by some bank official some documents would have been got signed from her mother after the death of his father.
Querist :
Anonymous
(Querist) 08 May 2011
Thank you very much sir for the reply. My mother is uneducated, she cannot understand, read or write, however she learnt to sign. After death of my father, bank people came to our house with all papers, and got singed on some documents, we were not sure about those documents. At that juncture, she believed bank people and signed those documents, as bank manager was a family friend. Now the letters we are receiving do not state that, the loan has been transferred to my mother, instead all letters denote that as if my mother has taken the loan.
I am not aware of that my father has any shares with the bank.
Isaac Gabriel
(Expert) 08 May 2011
Collect all the informations through an RTI application,ie.Name of borrower,name of surety,property pledged,purpose of loan,category under which loan was granted etc., so that you can proceed further legally.
