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Manjunath   13 October 2019

Witnesses for loan agreement

A and B are sisters. B took loan from A. While making loan agreement can son and daughter of A sign as witness to loan agreement.


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 3 Replies

Tapal Manjunath Reddy (Advocate)     13 October 2019

No... Witnesses should not have interest in the subject matter... Get any other third party witnesses...

G.L.N. Prasad (Retired employee.)     13 October 2019

In general, the witness is that so and so has signed in presence of so and so witness.  The contents are not relevant and witness duty is to identify the signatories.

This is not an indemnity or guarantee.

Most of the litigants, knowing that their relatives borrowed from some outsiders, after the death of borrower deny responsibility and state that they are not aware and undue influence is used to get the signatures by playing fraud.

According to my knowledge, as a precaution for due repayment, witness signatures are being  taken from legal heirs

When B took a loan, her legal heirs may or may not have an interest in subject matter, and when borrowed amount purpose involves legal heir interest, advocates suggest to get a witness from legal heirs.

P. Venu (Advocate)     13 October 2019

Yes, they can provided they are not minors or otherwise disqualified.


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