Civil Procedure Code (CPC)

Death of proprietor and legal heir dilema


Greetings Advisors, My father passed away recently and am seeking your expert advice. In this regard, he was running an X construction company as a proprietor (my father - A) + a partner (B). The X firm has got into a Joint Development Construction Project where the same document states as "Y Landlord is into an JD agreement with X construction firm represented by its proprietor - A + B" to construct apartments with a share of 50%. Henceforth, A+B considered as Developers who would build and sell units. Any liabilities to such project would be the responsibility of the developers. The project is currently at 60% complete. The accounts of the project has not been maintained properly.

Scenarios

1. Would me and my mother be held responsible for any liabilities arising due to my fathers death ?

2. Could we orally state that we are not interested in Legal Heir and would that stand legal. If not, what are the things to be taken care if we want no part as Legar Heir.

3. Can Partner B use a legal action against us if we disagree to be legal heirs? What are its implications?

4. My father has issued blank chequess to various private lenders as security. - Are we liable to repay debts made by my father that I am not aware of. 

5. Even before we become legal heirs, can me and my mother provide all rights to Partner B to continue business under a different name, take over all liabilities and accept a consideration amount as efforts put in by my father. Can we provide all rights to Partner B and how? 

 
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Secunderabad/Highcourt practice watsapp no.9989324294

None of us like to think about our own or our loved ones’ mortality, but ignoring that eventuality will not make a stressful situation any easier. When a family member dies, it’s important for you to know what responsibilities you might be facing.the creditors submit proof of the debts, and ask for repayment from the estate. So legal heirs have to fulfil it.

 
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ADVOCATE & SOLICITOR divyatta.r@gmail.com

first  legal  heirs have right over profit /loss and liabilities also .

but to contact local advocate or solicitor if you are in mumbai

divyatta.r@gamil.com 

 
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Lawyer

LRs of the deceased shall have to share his/her assets and liabilities, income and expenditure, profit & loss.

Consult a local lawyer..

 
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Thank you all for your guidance!... The problem I am facing is Me and my family do not hold any account details of my fathers assets, liabilities, income and expenditure. The records are missing. Partner B only states of his liabilities limited to bank records. Not all creditors have come forward with their claim and its becoming difficult to track them.

In my situation how do I proceed legally with the estate, when in reality he does not own any personal assets? Basically, he has no penny other than liabilities. Why should his wife and son take any liablities/profit that we were are not aware?

Honestly, we do not intend to run away from such a situation, its only that we do not have anyone who can give genuine legal advise (when everybody is trying to take advantage of our situation). Hence, my apathy towards taking up as legal heirs :( .

 
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I am in Bangalore. Can an Arbritrator solve this dispute? Clearly, the Partner B does not want to undergo an Arbritration and clearly my family does not want to take up as legal heirs as we will loose everything that I have earned personally.

 

Please provide some insights/solutions - How can one resolve this dispute?

 
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Advocate

Why are you jumpimg in the fire when your late father has liabilities only?  Normally wife, sons and daughters are the first class legal heirs of the deceased father but when your deceased father has no assets except liabilities why you will put your feet in the shoes of liabilities. Keep silence. If any body calls you to take up liabilities of your deceased father then you come to this forum for opinion. Unless you hold assets of the deceased you have no legal obligation to meet his liabilities.

 
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Hello Sir Biswanath, Thank you for your advise. My situation is that my father was a sole proprietor for a construction firm. The current project is at 60%completion. There are much investments made by Customers, Investors, Builders. I feel the project has to be completed or it would be a major financial loss for all. Only thing is, me and my family do not want to continue the construction business/project in our hands but another person is willing to take it up now.

 

1. How can I exit legally from legal heirship of this business?

2. Would a registered MOU agreement to transfer the business treated as closure of business?

 
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Advocate

You may mail me scanned copy of the JD agreement between X and Y to enable me to give you APPROPRIATE REPLY AND ADVICE as asked for. Such service can be rendered on usual professional terms.

 
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