Dear Client,

You along with other legal heirs are liable to pay debt up to the amount, have received from him after his death.

Let them approach the court and make the recovery through court.

All they can do after proving the valid borrowing, Recovery from father`s PF, Gratuity and pension.

Hope, house is not in his name or self acquired.

Hi

No attachment or recovery is possible from PF and gratuity

Madras High Court observed in a ruling...

Sathiyabama And Ors. vs M. Palanisamy And Ors. on 20 October, 2003

Your liability to clear your father's debt, cannot exceed the inheritance you've been benefitted with post his demise.

Thus your liability to clear these debts would be restricted to the PF, gratuity and the pensionary benefits.

Hello,

You are just liable to pay that much amount that you will inherit from your father. You do not have to pay anything out of ypur earnings.

Regards

1) you are liable to pay loans only to extent of your inheritance

2) you are not liable to pay other debts of your father

Under the Law on the death of the borrower the heirs has the duty to repay the same.

If you fails to pay the same to the Bank the Bank may attache the property you hold for recovery.

For the loan taken from bank you can submit the death certificate of your father, the bank can't force you to pay the loan of your father.

And for the those loan borrowed from Individual the following things are to be seen

1. Was the loan given as friendly loan

2. Or was the amount lended was with interest

If point no 1 then you can settle amicably

If point no 2 then you can approach the court as the loan was taken by you father and you are not liable to repay them.

Now the part of PF and Gratuity is concerned, if loan was taken leaning the account then you can settle the account with them

Yes, you have to pay your fathers debt from PF/Gratuity/Pension only i.e from the assets left by your father not beyond that. You have not to pay on your own but if your father left PF/Gratuity etc., his debt is to be paid through the assets of the deceased.

the first charge will be created on the money borrowed from Banks or Government Institutions.

In the absence of any loan agreement or any document for having received the loan from individual you need not pay unless the person who has lent the amount come with any authenticated proof.

Your father's PF, pension etc.. will the attached for recovery, if not satisfied the Bank may come opt for attachment of the heirs assets.

1) If in case loan/debt amount is bigger than the PF+Gratuity+Pension then Whom do I pay and whom I don't? how do I prioritize this? --- what d need, ask them to get order from court, in what proportionate, money shall be distributed in different lenders, or they mutually agree.

2) How can I verify the person from whom my father taken the money is real (without agreement) ?

and if he possess the agreement how can I verify its true and legal (what is the legal format and on what paper)? -- let the court decide,

3) Is there any way I can save this money occurred from PF,Gratuity and pension as we are never known or used my fathers borrowings (as not leaving together). This can help my family as lot - My sister wedding, moms medical, buy house, my wedding etc -- Sec 60 Code of Civil Procedure -

60. Property liable to attachment and sale in execution of decree.- (g) stipends and gratuities allowed to pensioners of the Government or of a local authority or of any other employer, or payable out of any service family pension fund notified in the Official Gazette by the Central Government or the State Government in this behalf, and political pension;

Section 13 in The Payment of Gratuity Act, 1972

13. Protection of gratuity.—No gratuity payable under this Act 39 [and no gratuity payable to an employee employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted under section 5] shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.

Section 11 in The Pensions' Act, 1871

11. Exemption of pension from attachment.- No pension granted or continued by Government on

Let them seek order through court,

https://indiankanoon.org/doc/715421/

Hi,

As per the law the legal heirs have to repay the debt. You are required to verify and confirm and then only repay to avoid any complications.

1) if the debts are more than amount received by your family on father demise all the creditors should be paid equally

2) if there is no loan agreement , no cheque payment received , no acknowledgment of liability by father you dont have to pay any money to said creditors

1. There are no basis for priortizing the same, you may pay the same as per your will.

2. In that case you may wait and let them file a case, as and when the case is filed you can pay the debts till the funds are there.

3. See in this case you may wait for those people to file cases, if they go ahead and file the case then inform the court about the situation.

OR

Go ahead and use the said amount and later fight the case on this ground that the funds have been used as there was no knowledge of any debts.

Regards

If the creditor brings court order for the debt you need to clear. Generally PF and gratuity if free from attachment. So you need to decide about payment of illegal loans of parents.

1. Pay the genuine lenders first, the ones those who have credible Proof demonstrating that your dad owed them some.

2. Don't entertain those who do not have proof.

3. You may defer repayment of your father's debt, until the time the lenders take a Legal recourse against you.

If ther is any PF and gratuity amount to be received towards his death benefits, you may pay the creditors to that extent and can raise your hand stating that you cannot pay anything more since you are not liable to pay his personal debts.

The creditors cannot take any legal action against your for recovery of his personal loans.

1. You can make a list of the creditors, ascertain the genuine ones by verifying the loan related relevant papers and after that you can distribute the amount in hand to all of them proportionately or equally.

2. You have to use your own source to verify the genuineness because without seeing those papers no opinion can be rendered.

3. Legally you can very well refuse to pay the debts, they cannot do anything against you.

Dear Sir,

My answers are as follows:

1) If in case loan/debt amount is bigger than the PF+Gratuity+Pension then Whom do I pay and whom I don't? how do I prioritize this?

Ans: Firstly contend that it was not a legal debt and it was never used for the legal necessity of the family. Secondly contend that the loans taken by your deceased father were covered by insurance policy and such premiums and such premiums were regularly deducted during the lifetime of your father as such insurance company is only liable to pay the loan. The terminal benefits are not bonanza as held by Supreme Court so it cannot be attached even as per provisions of Civil Procedure Code.

2) How can I verify the person from whom my father taken the money is real (without agreement) ?

and if he possess the agreement how can I verify its true and legal (what is the legal format and on what paper)?

And: Ask the Bank people to furnish all the details in this regard and ask the Bank people to recover its dues from guarantor.

3) Is there any way I can save this money occurred from PF,Gratuity and pension as we are never known or used my fathers borrowings (as not leaving together). This can help my family as lot - My sister wedding, moms medical, buy house, my wedding etc

Ans: If you are not approached Civil Court till now then approach the same and get an injunction order not to release PF and Pension amount to the bankers. Let the bank prove that such loans were used by your late father for legal necessities of your family.

For more details and for effective legal advise, please call me immediately, through Kaanoon Website.