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Yogesh Prabhu   31 March 2018

Bank force recovery

my father had taken loan in 1980 of 4 lac for some machinery installation and died n 1997 leaving behind the unpaid loan. bank use to contact us fpr recovery but we three sister had given letter to the bank that we dont have money and if u want to recovery it from our brother or sell the property and recovery your loan. bank dint take any forced action and kept the matter hanging . now the bank suddenly woken up in 2018 and showed us an oustanding ledger of 2 crores with intrest approx 2 lac per months

my question is
1 can the bank keep on adding interest after my dads death

2 are we liable to pay the loan

3 and if we are ready how much should we pay

please some one guide as its on urgent basis

thank you


 9 Replies

Kapil Chandna (Lawyer at Supreme Court of India)     31 March 2018



What kind of a loan was that ... 


Warm Regards 

Kapil Chandna Advocate 


G.L.N. Prasad (Retired employee.)     31 March 2018

It is presumed that it is a term loan and recovering it in 2017, after 20 years of your father's death is shocking.  This is particularly  shocking, as the amount was advanced in 1980 and your father died in 1997.  Forget about such threats for the present, and they can not bring any action against you unless you have signed.  I can not still believe how they are remaining silent without obaining any debt acknowledgment etc.  (Or else they might have treated it as a lost account, and suddenly if the real estates prices are increasing, they may be trying to get some amount back by disposing collateral security)

Chandan Chandan   31 March 2018

according to my opinion, bank can take steps against you all for recovery of amount. But, there is some limitation period to recover the same. How ever the facts may come to light. during the trail before the court. Contact senior advocate to defend your case. limitation period for un registered deed is only 3 years and limitation period for registered deed is 12 years. But the transaction was taken in the year 1980.

Yogesh Prabhu   31 March 2018

They had calles us at bank and explained some ots scheme wher we signed some form but it was done forcebly by us by threatening us that the amount will be liable on my son too and they have to repay them

Yogesh Prabhu   31 March 2018

My question still arises can they charge interest even after he is dead

Yogesh Prabhu   31 March 2018

I googled a lot Bank can take action only on the property which belongs to him why are they harrasing us for recovery and that to loan amount is 4 lac and their ledger is showing 2 crores

G.L.N. Prasad (Retired employee.)     31 March 2018

They can charge interest till the amount is fully repaid, but they will not show the income / revenue and have such calculation on the ledger..  Once it is declared as loss asset, charging interest is against RBI directives.

Immediately file RTI Application and seek those documents on which your signatures were obtained under RTI, you ought to have consulted a known friend or relative before going to Bank and signing.  To state  "we signed some forms is  not a responsible act.


Yogesh Prabhu   31 March 2018

They have given us a printed leger sheet with outstanding of 2 crores the bank already knows that my father is dead and death certificates have been produced that time and we sisters had instructed to bank to collect theri loan amount by selling my dads property

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     01 April 2018

The bank have a charge only on any asset left behind by your father and not on anything else.

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