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Uday Sharma (Service)     10 June 2008

Never ending loan

      This is just for the sake of suggestion and advice.
        My father was running a business in 1980's. Both the business were in my mother's name and she was the sole propreitor and also the signing authority. My Father had taken business loans on both the firms from one Co-operative Bank. As she was the propreitor and signing authority both the loans were in my mothers name. The loans were of 2 Bill discounting and one cash credit, totally amounting to Rs. 1.20 lacs in 80's.
         In 1983/84 my father left us and became abscounding. He left our family  because the business did not do well. He is abscounding since 1983/84 and his whereabouts are not known till date. It became really difficult for us because the sole bread earner became abscounding and the banks started haressing my mother. Even the bank knew about my fathers disappearance from the scene but they could not help. My Mother even lodged a police complaint but nothing worked. As she had two small children to bring up and a big loan to be paid, she was left with no option and she joined a School as a teacher in 1986. As the bank was unable to recover the loans they put up a case against her and the court awarded the bank to deduct compulsory Rs. 700/- from her salary. Her salary at that time was only Rs. 1500/- and two childrens to be educated, to be brought up etc but still the court gave the justice in banks favour and deduction of Rs. 700 from Rs. 1500/- salary started in 1989 . Since 1989 till 2007 i.e for 18 years they deducted Rs. 700/- from her salary and my mother paid the dues for the loans that she had never used. 
         Incidently last year in November she was detected for stomach cancer. She is no more now. There were two guarantors for the loan, one of them declared himself insolvent while the other had similar salary deduction for few years. All the three loans i.e 2 BDs and 1 CC were transferred under one account by the bank and compounded interest alongwith the principal comes to approx. 15 lacs as on date.
The Bank had offered us OTS in 2003 and asked to pay Rs. 2.89 lacs and settle the dues, we too agreed by paying Rs. 30000/- but couldnt arange for remaining amount and the same remained as it is. I recently consulted one renowned journalist, who forwarded this case to RBI, who in turn questioned the bank. The bank officials immediately called me up and said that they are right by recovering the dues from the legal heir of the borrower. The recovery head has now offered me to pay Rs. 2.89 (OTS amount offered by bank in 2003) and close the case once and for all, he even promised to issue a no dues certificate on the spot.
        My only question to you is whether I and my brother are liable for this loan. I have tried to approach many lawyers and advocates but and all of them have big charges but no solutions. If we are liable then we will definitely pay, but would request you to give your suggestion on this. 
       All the above incidents narrated are true and all of them are available with me on paper, would you require any of them to cross check, I will be able to provide you the same.
Please help me out in this and I will be very very grateful to you.
Thanks & Regards,
Uday Sharma


 2 Replies

amit gupta_lawyer (lawyer)     10 June 2008

the past liability of parents extended to childrens only upto the extent of the property of parents transfered to them. in case ur mother property has not transfered to u by way of sucession or she has no property in her name at the time of death.then in case u and ur brother are not liable for the same ,as u both have not taken that loan and ur not liable for that unless u acknowledge for the same.

Uday Sharma (Service)     11 June 2008

Thanks a lot for your reply.......but as you said my mother had no property in her name but her PF, Gratuity and some insurance amount we have received as she had worked as a teacher for 17 years.....What in that case?

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