Hi,
I had given a loan of Rs 22 lakhs to my cousin (my father's younger brother's son) who wanted to do business. Now due to loss in his business, he cannot repay my loan and also he has debts of another Rs 10 lakhs to other sources (individuals). He has asked me to buy his ancestral property that is worth Rs 45 lakhs. His father has expired, his mother is dependent on him and his 2 sisters are married. His mother and 2 sisters had given a registered release deed to him. But recently we learnt that he got married 3 years back without informing any of us including his mother and sisters. His wife is living with her parents and he has a minor child aged 1.5 years. Hence as per lawyer's advice, we filed for court permission for buying the property since his minor son also has a share in the property.
Now court has asked to deposit 50% of the sale amount (22.5 lakhs) in the court that the minor can use after he becomes 18 years old. We expected for a smaller amount based on our lawyer's calculation, but court is insisting on 50%. If we deposit that in court, then my cousin will get only Rs 50000 in hand (since I already paid 22 lakhs to him and another 22.5 lakhs has to be submitted in court now). His other creditors (individuals) are pressurising him to repay their loan of 10 lakhs. Also, his minor son has developmental problems due to Birth Asphyxia and is under continuous treatment - medicines, physiotherapy,etc. Hence he cannot manage these problems if he does not get any money out of the sale now.
Court says after depositing 22.5 lakhs to the court, he can apply for permission application for medical expenses for the child and can claim the actuals.
Now there are 2 questions :
1. How long will the court take to release money for medical expenses from the date of permission application? Can my cousin claim lumpsum money once in 6 months for all the expenses incurred or can he claim in advance? Is there any maximum limit?
2. Can he submit permission application for repaying his creditors? He cannot pay interest or repay those debts with his current situation. This will have an impact on his ability to take care of his family and the minor son as well.
Appreciate your kind reply and suggestions.
Thanks in advance.
