Greetings to my respected colleagues.
Law is common to all.
I am not familiar with the lower court proceedings. One of my family friend, took personal loan from Syndicate Bank in 2005 died in 2007 in an accident. Neither his uneducated wife and minor children were not aware of this. In 2010 Bank people came to their house enquired about him. Wife and kids told that they are not aware of any of his transactions. After coming to know they took signature on some papers telling loan account will be closed, but filed money suit against them showing some fake statements that the deceased remitted money on various dates from 2007 to 2010. Now the appeal is filed in the District Court.
If anyone takes loan from the Bank etc., it is the fundamental responsibility to repay the loan. Since the very borrower died without any information to his family or not attaching any of estate, is his surviving family responsible to repay.
As per my study, personal loan is an unsecured loan, since it is covered with insurance and the debt is of 2005 (17 years) are the deceased borrower family held as defaulters vide the law.
Inputs from the esteemed colleagues is highly appreciated.
Advocate - High Court only