• Father took a loan, is unable to pay back

Hello, my father took a loan from someone....and paid all but 3 lakhs ....gave a cheque for remaining amount to friend, but due to his heavy losses in business..he has not been able to pay further... a case was filed against him..in which my father promised to pay back the amount but is still unable to do so! he missed few hearings in court, and visited only when non bailable warrant was issue. However judge was absent and he was given another date. 

my questions :-
1)will he be arrested for missing court hearings?
2)will he be jailed for unable to pay back
3)are we , his sons, liable to pay back for it?he has no assets left, all sold, no property, no cash left in his bank account, literally broke! 
4)if he is arrested and sent to jail, which he is ready to go to, does he still have to pay back the amount?or it gets over once he goes to prison
5) how long can the jail tenure be?
Asked 7 years ago in Civil Law

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7 Answers

1) NBW can be set aside by court

2) in case father is convicted he would be sentenced to imprisonment

3) sons are not liable for your father debts

4) your father can be setenced to maximum 2 years imprisonment

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

1) your father can seek stay of his conviction and file appeal against the order.

2) if appeal is dismissed your father would have to go to jail

3) complainant would simulatneously file civil suit to recover the money and obtain decree against your father .

4) in execution of decree your father property if any can be attached

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

If the office issued the warrant the police will act upon that. So file an advance application to recall the Warrant. An explain why he was absent continuously in hearing dates. If the cheque is in your fathers name then he will be prosecuted . In 138 cases the court will sentence accused upto two years if he fails to prove his case.

If the court sentence to jail then he has opportunity file appeal before the high court and apply for stay of the sentences .

Ajay N S
Advocate, Ernakulam
4080 Answers
111 Consultations

5.0 on 5.0

1. Yes due t his continued absent W/A may be issued agaisnt him.

2. Yes if it is proved that he had liability to pay the said amount. To avoid jail term he will have to prove that cheque was given as security and he had no debt to pay.

3. No

4. Yes, could may give both jail term and payment order.

5.It depdns on case to case.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

1. If there is a non-bailable warrant pending against him then he may be remanded if he has not taken any steps to recall the warrant.

2. That will depend on the judgment in the case.

3. No, his sons or anyone else may not be held liable for this

4. The judgment will clearly explain about this situation too.

5. You wait for the judgment by the court after completion of trial proceedings.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

a)can he be out on bail?

He can get enlarged on bail after complying the conditions imposed for grant of bail.

b)will he still have to pay the loan, or is the liability over?

His liability will not get disposed once he is out on bail, the judgment will let him know about the next step.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

1. Unless the NBW is cancelled your father can be arrested in execution of it. He should appear before the court with his lawyer and apply for NBW cancellation.

2. He will be sent to jail in execution proceedings if he does not comply with the decree of the court.

3. His legal heirs are not liable for his debts during his lifetime.

4. If he goes to jail and serves the sentence imposed on him he will be set free one day.

5. Mere obtaining of bail does not extinguish the liability.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

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