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Kani   19 July 2022

Borrower is in prison. how to save loan account

Two of the partners of a 3 person partnership firm (borrower form) is arrested for murder of the third partner. Now, their business has stopped functioning as the other two partners are arrested. What will happen to the firm? Account is not yet NPA. How to save the loan and recover bank's dues. EM was created over land and there is hypothecation of stocks. Can legal notice for title suit be issued in prison.


 4 Replies

Shashi Dhara   19 July 2022

Take GPA from them along with dead partners lrs  and continue.

Dr J C Vashista (Advocate)     20 July 2022

Consult and engage a local prudent lawyer for professional advise and necessary proceeding.

G.L.N. Prasad (Retired employee.)     20 July 2022

If you are a banker, take possession of hypothecated stocks, inform your controlling office of all the facts and explore recovery through assets attachment or collateral securities of the loan.  (One for all and all for one is the principle in the firm and study the deed and assets statement of the individual partners ).  Keep all inspection reports of hypothecated stocks intact.

1 Like

P. Venu (Advocate)     20 July 2022

How you are connected with the issue?

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