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JollyGud (Employee)     20 August 2014

Bank threatens me - father's debt son liability

Hello Law Experts,

 

I am 30 yr old married young IT professional (no kids yet) . My father had borrowed money from several places , including banks for wrong reasons (Gambling, liquor )  and i was told  the debts are worth around 1 crore 20 lakhs rupees today. Now the bank is coming after his property (a house registered on my mother’s name worth 60 lakhs) .

 
My dad made several debts for all the wrong purposes ( his Gambling (pekata),liquor), Extravagant Luxurious life etc..) . We are not asking father to give a single penny as property to me...We just don't want to be held responsible for his debts.......We are  just worried that if this is not the end of his debts...and he continues to borrow more from wherever possible, to how much and to what extent are we held responsible? Again I am not complaining that my father is bad or something, it's just his friends circle, influenced by them,. And so on so forth that landed him up in this situation...
 
The house is my father's own. It is not ancestral property. The house was bought in 2005 for 13 lakhs, when he was all in good condition and today's value has risen to 60 lakhs. During these past 9 yrs he has changed tremendously and got involved in all bad habits, wrong friends circles that landed him in debts...... I definitely agree  that it is up to him to enjoy, he has full rights on it and we(all 3 children) are not denying that . 
 
But now the Bank is threatening to take away even my (Son's) properties as well. I have 3 plots worth Rs. 1 crore today. This is my hard earned money ( i work as a software engineer in USA) and I borrowed money from banks paid EMI's  every month from 2007 till 2013 and cleared off my bank loans using my Salary alone.  
 
 
Please advice what i should do in advance before they sieze my(Son's) property  as well for father's debts.
 
 
Thanks,
KPK


 12 Replies

Nishant (Lawyer)     20 August 2014

call  me +919892931504 , So we will help you. I am a lawyer , So if I resolve  you from depth then , I need  2% of depth yes before handling yours case as first fee . then 10% on 1 month after problem was resolved by me.  Its  Easy but you have to gave me all  Original Assets papers and depth  procedures done by yours dad. I resolved so many cases like this and knows the Depth Regional Tribunal (DRT) even in Auctions and before it. So call me or meet  me as soon as possible !

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     20 August 2014

As per the extant acts, legal heirs are responsible for the debts of parents to the extent of the property inherited by them from such parent.  In your case, you are telling that your father had taken loans from banks also for bad habits.  Banks do not give loans for gambling etc. May be he took loan showing some purpose and misused the funds and cheated the banks also.  As long as your Father is alive, no creditor of his can sue you or attach your properties, unless you have signed as a Guarantor or Coobligant for his loans. In case you have signed as Guarantor or Coobligant for the loans of your Father, the Creditors of your father can surely proceed against the property which is self acquired by you also.  If you have not signed any papers as noted above,  the Creditor cannot sue you attaching the property which you have self acquired. In your question you have also  not clearly mentioned whether your Father gave you any property which is now in your name.  You have only mentioned about a house which is in your Mother's name.

 

In case, any Creditor sues you attaching your own self acquired property, although you have not signed any papers standing as Guarantor or Coobligant to your Father's debts,  you have to appear before the Court and prove that the property so attached is self acquired and no harm shall come your way if your are right.  Of course the time the case takes to complete its full course is naturally longer and during that period you have to undergo the tension and agony, which you have to take in the strides of life.

1 Like

Rajiv Chauhan (Advocate) (Advocate (Shimla) 9418614888 098160-92892)     20 August 2014

I agree with Ld. Mr Sivaramaprasad Kappagantu sir.

1 Like

Kumar Doab (FIN)     20 August 2014

Agreed with Mr. Kappagantu.

Wife and Son is not liable as explained.

Record all calls/meetings with bank (audio/visual) and keep witness/evidence.

Demand authenticated copies of loan documents e.g. Loan application ;loan offer, loan approval, loan agreement, under proper seal and signature of bank' s competent employee preferably BM, by Redg. post.

If you are disturbed submit a complaint to BM, Nodal Officer, Chairman of the bank preferably drafted by your able lawyer and issue legal notice if required.

 

The bank/recovery agencies/agents, shall apply each tactics and shall not stop chasing you easily.

Hence it shall be sensible to approach your lawyer AS AP.

 

 

 

1 Like

K.K.Ganguly (Advocate)     20 August 2014

1. In the 1st para you have mentioned that "Now the bank is coming after his property (a house registered on my mother’s name worth 60 lakhs)", 

 

2. In the third paragraph you mentioned that "The house is my father's own". Whish statement is correct?

 

3. However, if the house is in the name of your mother, then the Bank can not do anything,

 

4. Next time when the Bank approaches you, tell them that you have nothing to do with your father's loan and the property does not belong to your father,

 

5. The Bank is trying to terrorise you to extract some money against your father's loan,

 

6. If the property belongs to your father, then the Bank can take possession of and sell of the said house to realise the outstanding loan amount lying in your father's name,

 

7. The Bank has nothing to do with your property,

 

8. Lodge a police complaint if Bank disturbs you for your father's loan next time..

1 Like

JollyGud (Employee)     22 August 2014

Thanks a lot for all your replies dear law experts. We citizens are so grateful to all of you law experts for the kind of guidance/service you are providing to the community. 

So the update I learnt from my family  is that , as a first step the Bank has filed a cheating case on Aug 20th (mentioning some 10+ IPC sections) in the local police station against my father  saying he cheated for an amount 1 crore 10 lakhs. My father did not surrender yet and is trying for bail. Would it be possible to get a bail for him ? Are there any conditions involved.

 

He was a President of a Co operative Society , from where the misappropriation/misuse of Funds have been done since 2008 and this got bursted now in 2014 . I heard that the same (old staff) Bank personnel(new manager of bank that took office recently filed case against my father) who were granting loans every year to this Co operative society also ate away some money in the form of Bribes every year. Even the auditors who audit also took bribes every year. But Case have been filed against the accountant of the Society and ex-president (my father) of the socitey only.
 
Although my father did make some debts  and probably be responsible for 30% of the money,he needs to be out side and consult lawyers etc..Would it be possible for getting him a bail?There is no one else in my family to go around and deal with this .

The house was bought in 2005 for 11 lakhs taking a housing loan in some local private bank for Rs . 5,50,000/- (rest of the amount was arranged from savings of grand mother but  no proofs as she gave in cash ,my father's funds were not used )   using my mother's name (she is a LIC agent) and the property also is registered on her name since then. Her monthly LIC commission is around Rs. 1000 only and the monthly EMI we have been paying since 2005 is Rs.5000/-. So my father definetly helped to pay monthly EMIs., as he is a govt employee and gets salary regulary around Rs.45,000/- per month. As a son ,using my own NRE funds I repayed outstanding Rs. 4,25,000 and cleared the housing loan in april 2014 and got the housing docs relieved from the local private bank. 

Currently the cooperative BANK is planning to attach my Mother's name registerd property as an attachment to My father's case, claiming that the mis appropraiated funds were used to purchase the HOUSE on wife's name.

I am thniking the next steps for the bank is to seize the HOUSE which is registered on my mother's name??. Will my family be kicke out onto the road.There is no single property on my father's name...

Please advise.

 

Thanks,

KPK

 

 

K.K.Ganguly (Advocate)     22 August 2014

1 The Bank can not attach your mother's house of their own without due process of law,

 

2. There is a procedure for such attachment and the said attachment order will be issued by the Court after hearing both the parties,

 

3. You better try to arrange for evidence in connection with the cash your mother had accumulated for paying tye consideration while buying the house,

 

4. Without seeing the FIR or case lodged/filed by the Bank, it will not be proper to part with any suggestion regarding your father's bail. 

1 Like

JollyGud (Employee)     23 August 2014

thanks a lot for all your replies so far mr ganguly ,mr . kumar doab &  mr.sivaramprasad and mr.nishant. appreciate your help .I will get more details.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     23 August 2014

Mr. Jolly Good,

Your last paragraph was as follows:

"...I am thniking the next steps for the bank is to seize the HOUSE which is registered on my mother's name??. Will my family be kicke out onto the road.There is no single property on my father's name..."

 

  1. "the bank is to seize the HOUSE which is registered on my mother's name"  Your usage of words "Registered on my Mother's name" is quite ambiguous.  Was the property acquired by your Mother out of her own source of income and funds? or was it purchased by your father and registered in your Mother's Name.  If it is latter, the property is subject to litigation now and Bank can attach it and try to get the matter proved that in fact the property is acquired, may be out of the loan funds,  by your father and to evade his Creditors put the property in the name of your Mother.
  2. Another crucial point is when the property "Registered" in the your mother's name.  Was it before your father went on a loan taking spree or after such misdemeanour,  as an after thought, your father did the registration in your mother's name to escape from the attachment of property at a later date?
  3. Another point you are mentioning is "There is no single property on my father's name".  Was there no property at all in your father's property at any time? or was he owning property at some point of time.   If he was owning property at some point of time and such property  now happens to be registered in the name of your Mother, the property in the name of your mother shall be open for litigation.

Kindly note Sir, Law is a wonderful thing and it always strives to get the naked truth out of the litigation and when we are seeking justice, we should appear before the Court with clean hands and full truth and the whole truth.  Then only we shall succeed in the long run.  Some people may give you advice that they would get this and get that,  may be in the short run but ultimately when the case unwinds in its logical course towards judgement, if the details placed by you before Court do not have their basis on TRUTH, the case will be lost.

T. Kalaiselvan, Advocate (Advocate)     24 August 2014

@ Nishant: soliciting business through this forum is not advisable, your act discourages other experts from giving proper opinions to the needy people.  If the querist approaches you directly, you can proceed, but never continue with such unethical practice.

T. Kalaiselvan, Advocate (Advocate)     25 August 2014

@Jollygud: Please make sure that you do not get involved in your father's debt trap and you stand losing your assets.Better consult a good advocate in the local and proceed further as per his advise.

1 Like

Sudhir Kumar (Dy Director)     04 October 2014

well advised.           


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