Liability of legal heirs of guarantor
Saumya Jain
(Querist) 28 April 2014
This query is : Resolved
A person has taken agricultural loan form Bank and put his father as guarantor. Both son & father died in a period of 1 year without repaying the loan. Bank put the land on auction, but full amount could not be recovered. Further recovery proceedings are initiated against the brother of the person who has taken loan as their father stood guarantor. On what points the recovery proceedings can be objected or could the bank initiate the recovery ?
R.V.RAO
(Expert) 29 April 2014
only the estate/assets of the deceased (original debtor/borrower) is liable for his debt and can be attached .the legal heir's personal or self acquired property cannot be touched.
if the legal heir has inherited any property from the deceased borrower,then such inherited property is liable for the debts.
Sudhir Kumar, Advocate
(Expert) 29 April 2014
agreed. Please state if brother of borrower has acquired any wealth through guarantor father.
Rajendra K Goyal
(Expert) 29 April 2014
Agree with the advise of expert RV RAO sir.
ajay sethi
(Expert) 29 April 2014
agree with Mr Rao
Saumya Jain
(Querist) 04 May 2014
Thanks for your response, brother of the borrower has not inherited any land as such, but some money is only given for meeting some expenses by his father on some occasions that was in cash.
R.V.RAO
(Expert) 04 May 2014
thanks.sri R.K.Goyal ji,sri Sudhir kumar ji and sri Ajay sethi ji.
