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pradeep   06 January 2021

Mortgage suit

1. One loan account of a borrower limitation expired, AOD not obtained (charge created on agri-land) 2. Another loan of Same borrower secured by mortgage, mortgage within limitation. 3. Same property for both loans 4. Borrower deceased 5. Can it possible to file mortgage suit aginst borrower/ mortgagor/legal heirs? Can file suit for both loan accounts?

 9 Replies

Sridaran Ganapathysubramanian   07 January 2021

If the financier had filed the suit against the legal heirs of the borrower with in three years from fro date of death of the borrower,it holds good as per law.Financier has got legal right to file the suit for both loans with in above mentioned period.

G.L.N. Prasad (Retired employee.)     07 January 2021

Please provide exact dates, and date of last credit in the accounts, period of loan sanctioned etc.  Contact a local advocate as several things are to be looked into to revive such assumed expiry of limitation period.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     07 January 2021


  1. What is the nature of the loan ie? Pro-note based or Stamped Agreement based?
  2. Date of Pro-note and/or Agreement
  3. Date of the last amount paid by the borrower and whether the payment is made by the borrower himself duly with a signed letter/pay in slip?
  4. Date of Borrower's Death and when the financier came to know about the death of the borrower.
  5. Date of the Mortgage Transaction and whether in the mortgage

Without these details, it is difficult to give proper guidance.


Dr J C Vashista (Lawyer)     08 January 2021

The mortgaged property is under charge of the Bank/ financier, accordingly they have every right to proceed against LRs of deceased borrower.

pradeep   21 January 2021


1. Loans are agreement based of agreement- a. KCC loan-18-06-2007 b.tractor loan-20-02-2009 repayments in both the loans

4.Borrower deceased on- 18-12-2019 of mortgage- 18-02-2009




G.L.N. Prasad (Retired employee.)     21 January 2021

Who is the financier?  This is most unlikely in financial institutions like Bank,.  Whether there was a Debt acknowledgment or exchange of notices and replies are important,. Still, there is a limitation period as the loan is backed up by a mortgage agreement.

pradeep   21 January 2021

1. For KCC loan - AOD not available, mortgage not available.

2. For tractor loan - AOD not available but mortgage is within the limitation period

3. As the borrower (deceased) is same for both loans, can it possible to file mortgage suit against legal hiers of borrower for total dues to bank from both loans or only for amount due from one loan which backed by mortage, plz guide.

4. property mortgaged for second loan is same charged to bank at the time of availing first loan






G.L.N. Prasad (Retired employee.)     21 January 2021

The bank can exercise the right of general lien on all securities, whether the charge is available for other loans or not.   It is better to compromise with banker instead of spoiling the credit rating and image in society.

pradeep   22 January 2021 hiers of borrower not ready to execute AOS hiers denied banks offer under OTS also 

3.clarification required- whether the fisrt loan can be added while filing mortgage suit or not? 



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