Extent of son liability for father debts
virender mahajan
(Querist) 17 February 2013
This query is : Resolved
Dear respected experts.
I am CA virender working in industry. My father was sole proprietor A class contractor doing liquor business in himachal pradesh from yr 1983 to yr 1998.busines closed in yr 1998.he owed debt to govt as well as private debt for yr 1998.these debts to be paid by my father is pending due to cases pending.this amount very high.there was prospective
Amendment in yr 2004 in hsa act which will not apply .since debt of yr 1998.in this case hindu law applies. My father alive.i am newly married sir. I think my father will unable to pay full debt. I am very afraid about my personal property to be attached and whether i have to go to jail if debt is not paid.i am very afraid pls clarify sir with reasons i am newly maried and salaried pls help.
Devajyoti Barman
(Expert) 17 February 2013
Do not worry. If the debts are not secured debt then you are away from its clutch.
In any case even if the same is secured one then also only the properties inherited by you would be under its effect and not your personal ones.
Raj Kumar Makkad
(Expert) 17 February 2013
The debt f 1998 is time barred and legally cannot be recovered from your father. You have nothing to do with the debt of your father during his life time. No recovery can be made against any of your properities.
ajay sethi
(Expert) 19 February 2013
your self acquired property cannot be attached or sold for your father debts . only your father is liable to pay his debts
prabhakar singh
(Expert) 19 February 2013
ONLY DEBTORS' PROPERTIES ARE SUBJECTED TO DISCHARGE THE DEBT,HEIRS OF DEBTORS OR THEIR
PERSONAL PROPERTIES ARE NOT LIABLE.
prabhakar singh
(Expert) 19 February 2013
FORGOT TO WRIGHT SON OR ANY HEIR?
RULE OF 'PIOUS OBLIGATION OF SON' HAS BEEN SAID GOOD BY FROM DATE OF ENFORCEMENT OF AMENDMENT BY CENTRAL LEGISLATION.
prabhakar singh
(Expert) 19 February 2013
HEY IT LOOKS IF I AM COMMUNICATING WITH EXPERTS ONLY?
THEN WHAT?
TAKE THE REFERENCE OF HINDU SUCCESSION ACT.
kindly read:
"s.6(4) 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:"
virender mahajan
(Querist) 20 February 2013
Dear sir amendment in hindu succession act in sec 6(4) is prospective amendment .it applies if debt contracted on and after 2004 . It does not apply if debt prior to yr 2004. In my father case debt of yr 1998 and case pending in court .then what is setlled law on this point respected experts.
prabhakar singh
(Expert) 20 February 2013
Dear virender !
True the amendment is prospective and shall not apply to debts contracted before its enforcement.
What restrained you to tell us at very first time that a recovery suit is already pending.The liability is on you too here.
virender mahajan
(Querist) 20 February 2013
Dear respected experts.
Suits are pending on my father not on me .since hindu law will aplly to debt contracted in yr 1998 by my father if my father defaults. But as per settled hindu law only share in corparcernery property can be attached.son personal asset cant be attached .i am very worried sir .i am ca civil law not my area.i am worried on my personal assets and is there that son has to go to jail also if father defaults.
prabhakar singh
(Expert) 20 February 2013
Are you governed by Mitakshra school?
The law about debt is so that the separate property of a Hindu ,whether he is joint or separate,is liable for the payments of his debts both in his life time as well as after his death. His undivided interest in coparcenary is not liable after his death unless it was attached or sold in his life time.
However there is an exception to this rule to the effect that where a father or grandfather or great grand father dies leaving PRIVATE DEBTS AND THE DEBTS ARE NOT OF IMMORAL CHARACTER,the entire joint family property including his son's UNDIVIDED INTEREST THEREIN is liable for the payment of his debts even after his death even if such interest was not attached in his life time.This what they laid as rule of pious obligation.This liability is however not a PERSONAL LIABILITY,THAT IS TO SAY,THE SEPARATE PROPERTY OF SON'S,GRAND SON'S OR GREAT GRANDSON'S IS NOT LIABLE TO PAY THE PERSONAL DEBTS OF HIS ANCESTOR. THEIR LIABILITY IS CONFINED TO THEIR UNDIVIDED INTEREST IN THE joint family property.
It is judicially settled view is that an heir is not PERSONALLY LIABLE to pay the debts of his ancestor only because of being a son or grand or great grand son.
When there is no personal liability of the heir then naturally the heir's personal properties are also not liable.
HENCE NO EXECUTION CAN TAKE PLACE AGAINST THE PERSON OR AGAINST THE PERSONAL PROPERTY OF THE HEIR.That means you do not need to be afraid that you shall be put behind the bars in execution or properties created in your name from your earning and never put into the joint pool JHUF could be attached in any manner whatsoever.
Where a decree has been passed against father in respect of debt incurred by him,and father dies before satisfaction and discharge of the decree then the same could be executed under section 53 Of C.P.C.by attachment and sale of ONLY ANCESTRAL PROPERTY IN THE HANDS OF SON(S)UNLESS The son(s)prove that the debt was incurred for an illegal purpose.
virender mahajan
(Querist) 20 February 2013
I am resident of himachal .i am governed by mithakshra school of thought. Over all conclusion i came from your guidance is that .there is no personal liability on me and i cant be jailed for this. Only my share in ancestral asset can be attached only .my personal asset cant be attached.
Regards
Ca virender
R.V.RAO
(Expert) 26 February 2014
Mr.Virenderji
.LCI experts have repeatedly and very patiently explained that your personal and self acquired properties will not be appropriated towards the debts of your father.
if you have any inherited properties,such properties will be appropriated toewards the father's debts.
your going to jail does not arise at all.
u r c.a .must have well understood by now.
