• Late father’s unsecured non-banking loans

My father recently passed away due to an accident. Only after his demise our family got to know that he had received loan from few people ranging from ₹10,000 to ₹2,00,000 totaling around ₹13,00,000. Now the problem is that my father had not kept any records and most of the lenders had got blank promissory note with revenue stamp signed by my father without any other details filled in. Please advise me what to do with this kind of situation. Is it valid to give blank promissory note? What if the lenders fill whatever the amount they want in the blank note?. Above all, is it mandatory for me to settle all the loans received by my father?. Should I make police complaint? We currently do not know What to do. Please guide us!!
Asked 6 years ago in Property Law
Religion: Hindu

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18 Answers

You are liable to pay your father debts only to extent of your inheritance 

 

2) you are not liable to settle all loans of your father 

 

3) blank signed promissory note would be valid as it authorised filling of details by the lenders 

Ajay Sethi
Advocate, Mumbai
99841 Answers
8148 Consultations

- As per law, it is not mandatory for you to settle any loan taken by your deceased father, because father and son`s assets will be treated as their respective separate properties.

- Moreover , if you got property of father both movable or immovable properties through inheritance then only , your liability to pay the debs , after selling those inherited property.

- But, if you were a guarantor of the said loans taken by your father , then only you are responsible for paying the same, othewise they cannot legally recover the said amount from you. 

- Yes, they can miuse the promissory note , if signed by your father .  

- Yes, you should lodge your complaint against them , after stating that some persons have obtained blank promissory note from your deceased father, and now they may misuse the same, and further if they misuse the said papers , then you will be not resposible for the same. 

 

Good luck and dont forget to rating Positively.

Mohammed Shahzad
Advocate, Delhi
15821 Answers
242 Consultations

If you have acquired any property that had been left behind by your deceased father you may be obliged to settle the loan amount that he incurred during his lifetime to the extent of the value of the property

If you have not acquired any property then you may simply reject the demand made by the lenders.

T Kalaiselvan
Advocate, Vellore
90043 Answers
2498 Consultations

See you deny them to pay any amount let them file suit you can contest same. See they need other proof too to establish the deny. See you along other legal are responsible only to the extent of inheritance you received from the father.

If they harass or intimidate you, you can file police complaint along with the proof.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

No it's not mandatory. You can talk about it. 

Prashant Nayak
Advocate, Mumbai
34553 Answers
249 Consultations

Your mother's property shall be her own property, it is not liable to be attached for your father's personal debts.

The cheques issued if returned for insufficient of funds and if the legal heirs have not acquired any assets of deceased they can very well disclaim the responsibility or liability.

You can apply for legal heirship certificate but it should include the names of all heirs.

T Kalaiselvan
Advocate, Vellore
90043 Answers
2498 Consultations

your mother property cannot be attached to recover father debts 

 

2) you can apply for LHC for return of gold borrowed by your father 

 

3)you would be liable for father debts as per assets inherited by you from your deceased father 

Ajay Sethi
Advocate, Mumbai
99841 Answers
8148 Consultations

1. ANY "legitimate debts /liabilities" of deceased person, HAS to be borne by the "beneficiary" residual legal heirs of deceased person.  Here it needs to be decided whether the said "promissory notes" are legal, stamped, witnesses, reflected in lenders account books & income tax returns.  IF such liabilities are not legal, THEN it is not recoverable even in a Court.

2. Debts /Liabilities are bound by only the "deceased persons residual properties"  AND NOT OF HIS LEGAL HEIRS PERSONAL PROPERTIES.

3. IF a liability is legal, THEN the beneficiary who claims other properties of deceased ALSO BECOMES liable for deceased persons legitimate liabilities.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

You are not liable to pay the debts taken by your father and recovery can be made from his estate which he may leave behind and which you inherit. 

Without putting date, amount and other particulars and giving blank signed promissory note is not valid in law. 

 

Mohammed Mujeeb
Advocate, Hyderabad
19333 Answers
32 Consultations

The legal heirs are liable to the lender only to the extent of value/assets, if inherited, from the deceased. If no assets are inherited, the surviving spouse or children have no liability towards the lender. 

yes you can apply for legal heirs certificate. 

 

Mohammed Mujeeb
Advocate, Hyderabad
19333 Answers
32 Consultations

See there wont be any effect on the mothers property though if you take gold back from the bank you have to pay the amount and further there wont be any issue in same if you get legal heir certificate. 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

See then a FIR can be registered against the person for forgery since your family signed no promissory notes.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

legal heirs are not liable, incase if they made any forge promissory note then you can register Fir against them. 

Mohammed Mujeeb
Advocate, Hyderabad
19333 Answers
32 Consultations

If you have not inherited any assets you are not liable to pay father debts 

 

2) file poluce complaint of forgery in case name of family members are included 

Ajay Sethi
Advocate, Mumbai
99841 Answers
8148 Consultations

The blank promissory notes need signature of your family members, they cannot forge anyone's signature as they do not know how you people sign.

Even in case they forge and make a false claim against you people directly then you can challenge the same in court of law and get the case dismissed on merits and the support of documentary evidences.

 

 

T Kalaiselvan
Advocate, Vellore
90043 Answers
2498 Consultations

If you get the same without objection of other legal heirs If any it will be good

Prashant Nayak
Advocate, Mumbai
34553 Answers
249 Consultations

1. Just wait and do not give away or do anything, since it will create documentary evidence's against the legal heirs of deceased.

2. The debt /liability is "time-barred" from date of commitment to repay the loan. As far as forging is concerned, anybody at anytime can forge and create a dispute. BUT this dispute has to be sustained by account books, bank statements, income tax returns, witnesses & other documentary evidences etc.... 

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

A promissory note without date or amount is not enforceable instrument.

If lender himself fills the amount and date now then you can take defence it was forged but you will become liable to pay the amount mentioned in promissory note.

Yes as legal representative of your father you are liable to clear loans taken by your father.

You cannot make police complaint regarding this matter.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

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