Settlement of loan against property

Guest (Querist) 10 July 2010 This query is : Resolved
Dear Ld Friends,

Father has mortgaged the ancestral house property (year 1987) with ABC Saswatha Nidhi and availed loan (approx. Rs.75000/-).

After a year, father passed away.

Father has four sons.

Loan was settled (year 1998) by 3rd son and he collected the documents and kept it under his custody. He is not showing the documents to anybody and always claiming that he only put initiative and settled the loan.

Query

Is it legally permissible that any legal heir with money can settle the amount and collect back the documents without consent of other legal heirs ?

Is it right on the Lender part to just collect the amount for the mortgage loan and hand over the documents to the person, who is settling the loan ?

I shall wait for your views on the matter.

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Y V Vishweshwar Rao (Expert) 10 July 2010
The Amount is Settled by one Son and received the title Deeds from bank on behlaf of all the Legal Heirs . For Settleement of loan & Payment of loan by one son there is no restriction -After payment of loan & discharge ,the Bank to insist for acknowledgement for receipt of the Documents from all the sons . However the said one son is holding the title Deed on behalf of all the sons- subject to his claim of adjustment of amount paid by him to Bank.

Chanchal Nag Chowdhury (Expert) 10 July 2010
It depends on the type of mortgage entered. However, in general,a mortgage may be settled by any legal heir & he may hold it subject to settlement of A/Cs.
As for the lender, he is under no obligation to inform other heirs.

Devajyoti Barman (Expert) 10 July 2010
Yes the deal is legally struck out.
However only because that the said son has settled the loan amount he can have exclusvie right over the property though at the time of partition his contribution will be accounted for adjustments by other co-sharers.

Uma parameswaran (Expert) 10 July 2010

Bank ought to have insist the presence or the consent of the other legal heirs.But Bank have n't done.Bank could not come to the conclusion that the repayment made alone by the one son.Try to move against Bank and the son.

Guest (Querist) 12 July 2010
Dear Ld Friends,

Thank you for your advise / views on the matter.

D. KARTHIKEYAN.

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