You need to send them a notice first and file a recovery suit against them for the said money. 

- As per law, the limitation period of recovery of amount is limited to three years from the date of agreement , but as the said deceased person was not paying interest etc since one year only, hence limitation period will be applied from the last payment and not the date of  agreement. 

- Further ,as the said person has already died , hence no complaint can be filed against a deceased person or against his family members . 

- However, you can file a recovery suit on the ground of that debt paper against the legal heirs of the deceased ,  because after the death ,his legal heirs are liable to pay the loan amount of your grandparents. 

- Send a legal demand notice to the family members of that deceased person ,and if no response , then file a Recovery case against them as i mentioned above. 

Dear Sir,

You are suggested to first serve a legal notice and then file the case for recovery of that amount.

Your grandparents have to sue the resident legal heirs to recover the outstanding amount with interest 

Send him legal notice to refund full amount with interest, failure to which you shall be constrain to file FIR against him and will also file recovery suit. 

By the way, child/brother are not liable to pay deceased debt but since child have inherited his property including PF, you are entitle to recover debt amount from CANE child from the inherited assets.

Please issue notice to legal heirs of deceased for demand of loan Principal with interest. 

After two weeks time.Pl consult local Advocate for filing of recovery suit against the legal heirs of deceased person who had taken loan on paperwork which you have right under your control.

Only Civil case is in your favour. 

No Criminal charges or case is maintainable against any legal heirs of the deceased or family members. 

Get a legal notice issued and thereafter file s suit for recovery in consultation with local lawyer.

1. I regret the money of your grandparents have gone with the demise of the borrowers. 

2. Since this loan was unsecured loan with the death of the borrower the same goes away and the legal heirs of the borrower is not legally bound to repay this money. 

3. Your grandparents are bereft of any legal remedy and their hope to get it back depends on creating social pressure upon the legal heirs. 

Good luck. 

Look brother 

Giving money to someone for taking interest is illegal. 

Now you can try filing a police complaint against them for doing fraud with your grandfather. 

1. Grand Parents (not You) can file a Police FIR, requesting investigation and charge-sheet, for offences like  Cheating, Intimidation, Fraud, Breach of Trust, Mischief etc.... against the person, supported with all relevant supporting Documents, Evidences & Witnesses.

2. IF the Police does not take action, THEN you can file private criminal case u/s 156(3) Cr.P.C., in the local Magistrates court, seeking directions to the Police to investigate and file charge sheet. The said Person may come down for settlement.

As you have the papers then file a recovery suit on the ground that the money was taken as a loan being the legal heir of the deceased against the legal heirs of the person who have taken the money.

You cannot file a criminal complaint because of two reasons: 1. This is civil nature dispute; and 2. The person who had taken the loan is dead.

You can issue a legal notice demanding the payment of balance amount along with interest within a reasonable time (can be 30 days). The legal heir of the deceased (particularly the son, because deceased's brother is not the legal heir) is bound to repay the loan from the properties which he would have inherited from the deceased.

If the son fails to repay the amount within the period mentioned in the legal notice, you will have to file a suit for recovery of money in the civil court.

Hope this helps.

Best wishes!  

If you have the papers then file a suit immediately in the district court for recovery of money.

1. See in case grand father doesn't have any money lender license he cannot charge interest secondly for recovery of principal grand father may issue legal notice and further on notice if they refuse he may file suit before the civil court.

Also he may file an application to expedite the suit on ground that he is a senior citizen.

If this was a personal loan then the legal heirs of the deceased borrower cannot be held liable for repayment of the same.

If your grandfather is having the loan agreement or the promissory note signed by the deceased borrower then he can issue a legal demand notice to the heirs of the deceased after which he can fie a money recovery suit to recover his money making the legal heirs liable to pay out of the terminal benefits of the deceased borrower or out of the property belonging to the deceased  that will be inherited by the legal heirs  Your grandfather can file an application for attachment before judgment for attaching the property of the deceased borrower in the same money recovery suit.

From examining all the facts of your query I want to say that-
These cases are very common in various Courts of India and Supreme Court of India. I can understand your problem in this regard.
In Pannalal And Another vs Mst. Naraini And Others (1952) Supreme Court held that -
(1) A Hindu son is not personally liable to pay the debt of his father even if the debt was not incurred for an immoral purpose : the obligation of the son is limited to the assets received by him in his share of the joint family property or to his interest in such property, and it does not attach to his self-acquisitions.
(2) The pious obligation of the son to pay the debt of his father exists whether the father is alive or dead. It is open to a creditor of the father to obtain a decree against the father and in execution of the same put up to sale not merely the father's but also the son's interest in the joint estate. The creditor can make the sons parties to such a suit and obtain an adjudication from the Court that the debt was payable by the sons. But even if the sons are not made parties, they cannot resist the sale unless they succeed in establishing that the debts were contracted for immoral purposes.
(3) So long as the family remains undivided, the father is entitled to alienate for satisfying his personal debt not tainted with immorality the whole of the joint family estate, and a creditor of the father is also entitled to proceed against the entire estate for recovery of the debt borrowed by the father.
(4) The sons are not liable for the debts incurred by the father after partition between them and their father. The share which the father receives on partition and which after his death devolves upon his sons, may in the hands of the sons, be available to the creditors of the father, but the shares allotted on partition to the sons cannot be made liable for the "post-partition" debts of the father.
(5) The sons are liable to pay the pre-partition debt of the father, even after partition if the debt of the father is not immoral or illegal and for the payment of which no arrangement was made at the date of the partition.

I have dealt with many such cases in Supreme Court. These abovementioned points are very much relevant for your case. This judgment is being cited in recent cases as well. It is not overruled. This judgment is turning point for late government employee's legal heirs. They can deny your payment by using this law. But you have legal options always available for you. There is no legal problem which has no solution.

You can file police complaint in nearest police station in your area. You can issue legal notice through Advocate in this regard. I can help you out for this at a minimal & reasonable cost. All legal action can only be taken once notice has been served upon the entity or individual you wish to take to court. It is only this process that legalises bringing a matter to court. The intimation sent is known as a legal notice. A legal notice is, therefore, a formal communication to a person or an entity, informing the other party of your intention to undertake legal proceedings against them. This notice, when sent, conveys your intention before the legal proceedings and thus, makes the party aware of your grievance. Many times, a legal notice served will bring the other party on heels, and the problem can get resolved out of court too, with fruitful discussions on both sides. And, if the other party is still not heeding to the grievance, one can always start the court proceedings after a particular interval, as stated by the law. Although a legal notice can serve as a purpose of negotiations between the parties and save time, effort and money that are usually spent in court cases.

You may contact my secretary to connect with me for clarification.
I hope you and your family are safe and healthy. Stay home and be safe during Covid-19.

Gopal Verma,
Advocate on Record & Amicus Curiae,
Supreme Court of India

1. Since your grandparents have the ''debt papers'' to prove that they gave him loan the remedy in their hands is to file a suit for recovery of money against his son in the civil court.

2. Son is bound to repay the debt if he has inherited the movable/immovable properties of his father.

Your grand parents can file the suit for recovery of amount against the legal heirs of the deceased before the competent civil court

1. Your grandparents cannot file complaint against legal heirs of deceased debtor but they can definitely file recovery suit against legal representatives of deceased debtor. 

2. For recovery suit your grandparents need to send them a legal notice for recovery of money given to their father if they still refuse to return the money then your grandparents should file recovery suit against legal representative of deceased borrower.