1) you are liable to pay the shortfall in recovery of dues by the lender
2) your liability to pay father debts is limited to extent of your inheritance
Liability of heirs in case of death of guarantor
My father has taken loan from state financial corporation to set up industrial unit he has also signed a personal guarantee as THE GUARANTOR (which expression shall unless repugnant to the context or meaning thereof be deemed to include respective heirs ,executors and administrators).The unit became NPA and was taken over and sold by the lender.My father has also died. He transferred his property in my name before death but after the unit has become NPA. What is my liability and that of my married sisters in this case.
Asked 8 years ago in Civil Law
9 Answers
in same case his partner has signed the same agreement and guarantee has transferred his property to his son but he is alive what is his liability and that of his son for outstanding loan ?
Asked 8 years ago
partner would be liable to pay bank dues
2) if property has been transferred to defraud creditors bank can file suit to set aside transfer
Liability of the partners will be as per the share of the partners in the business. Further, if the property has been inherited by you and their is some lien against the property then you will liable to clear the dues from the property that has been inherited by you, the said liability will be as per the division among you and your sister.
Regards
in this same case there was no lien on any property and no list of property was given to the lender and there was no bar on guarantor the bar not to sell was on borrower a bit detailed answer shall be highly appreciated.
Asked 8 years ago
The liability of principal debtor is co extensive with that of guarantor
2) after loan became NPA your father was liable as guarantor to repay the bank dues
3) your father during his lifetime transferred the property
4) on application made by bank court can set aside the transfer made
1. The heirs of a borrower are liable to repay the debts contracted by him if they have inherited property from him. Hence, you alone are liable to repay the debts of your father.
2. The lender can file a suit for recovery of money against you in the civil court.
In so far as his partner is concerned his son is not liable during his lifetime.
If the property transferred to your names is not part of the collateral security then the transfer of the same in your favor is valid.
The lender has already taken possession of the industrial unit and sold the same, he may not have any claim agaisnt the legal heirs because the legal heirs have not acquired any property that belonged and left behind by the decesed borrower for intestate succession.
in same case his partner has signed the same agreement and guarantee has transferred his property to his son but he is alive what is his liability and that of his son for outstanding loan ?
As a partner he is liable to repay the loan even though he had transferred his own property to his son.
He has to repay the loan or face legal action in the course of recovery by due process of law.
in this same case there was no lien on any property and no list of property was given to the lender and there was no bar on guarantor the bar not to sell was on borrower a bit detailed answer shall be highly appreciated.
The borrower, if had not offered any property as collateral security except for the industrial unit, then the property already transferred in favor of his sons before the lender had taken any legal action for recovery, there is no liability on the property transferred thus.