My wife, mother in law and my wife's sister jointly own a property in hometown. My wife's sister lives with the Mother in law after recent divorce. She has coerced her mother to sign two loan ( one for 5 lakhs and another 3 lakhs) by pledging the documents of properties. My wife was not a signatory . After my Mother In Law has come to live with us for some time, she had told us what has happened. She also said that she was subjected to continuous harassment for signing. Many a times she has taken money without her knowledge , from her bank account, using her ATM card. What steps we can take against my wife's sister?
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1) your wife consent is necessary to mortgage the property as she is one third owner of property
2) your mother in law should change her ATM password
3) refuse to give any loan to her daughter
4) repay the loan and release the original documents of title from the bank
Can she make a police complaint that the loan was coerced from her and also about the theft at home? will that get her off the loan liabilities?
Mother in law would be liable to repay the loan amount
2) she can file police complaint against her daughter for theft
1. The acts are surely not permissible under law and are criminal to say the least.
2. However keeping the family pride and prestige in mind its not advisable to lodge complaint with police just now.
3. First cancel the loan standing in the name of your MIL. Gor this you will have to foreclose the loan.
4. Then don't let her stay with that daughter anymore.
If these fail to stop her criminal activity go to police with charges of cheating, impersonation, criminal intimidation, wrongful confinement etc.
Hello sir , the complaint can be filed only by your mother in law against her daughter .. Yes she can file a police complaint against her ..
You can file a civil suit for cancellation of that loan Agreement. Loan Agreement is a contract and governed by the Indian Contract Act. According to Section 10 of the Indian Contract Act if consent of the party has been taken by force or fraud or coercion or applying undue influence then the contract is voidable on the instance of that party.
When the loan Agreement is declared by the court is void then your mother in law will no longer be liable for repayment of that loan. Then that loan will be shifted upon her daughter and she shall be responsible.
Since your wife has equal share in the said property therefore the same can not be mortgaged without her consent.
You should then go for cancellation of the loan.
Ask your mother in law to change the ATM password.
Yes a complaint can be filed but the same can only be filed by your mother in law, in my advise keep criminal complaint as the last resort.
Regards
If the property is jointly owned by your wife along with others you may ask your wife to issue a legal notice to the bankers who advanced the loan to immediately cancel the loan and release the property since she also has a legitimate share in the property, failing which she can file a partition suit seeking her share in the property as separate possession.
She can also seek direction to the bank to cancel the loan insofar as her share in the property is concerned since since has not signed annywhere to jointly mortgage the property for the purpose of loan,.
Can she make a police complaint that the loan was coerced from her and also about the theft at home? will that get her off the loan liabilities?
A police complaint will not be maintainable since this is a civil matter.
She has to initiate appropriate civil suit only to get permanent relief.