• Default in loan repayment

My father had taken few personal loan of about 7-8 lakhs from various banks in year 2003 / 04. He was able to pay some EMI's and rest could not pay due to loss in business. He did not declare himself bankrupt. After that, we shifted our rented accommodation to some other place. Now banks are not able to trace him but often calling me and few of our other relatives for asking me to either provide them his whereabouts or pressurizing me to pay on his behalf. 
I am not in a condition to pay such huge amount and i am not in touch with my father. This does not mean that i don't want to pay, however, i need some time to arrange funds as i am a family person.
I had not signed any paper while my had my taking / applying for loans.
Want to know the steps bank can take in such case?
Also, am i liable to pay? 
What if the bankers are able to trace my dad, what actions that both the parties can take?
Asked 2 years ago in Civil Law from Jaipur, Rajasthan
1) claim of banks would be barred by limitation . loan was taken in year 2003-04 

2) no payments have been made for 10 years . banks did not take any recovery proceedings . 

3) you are not liable to pay your father debts unless you have inherited some property from your father . it would be limited to extent of your inheritance . 

4) just inform the banks that your father is not traceable and you are not liable for your father debts .
Ajay Sethi
Advocate, Mumbai
23386 Answers
1229 Consultations
5.0 on 5.0
1. ur not not liable to pay said debts of father as u had not signed any papers of bank as guarantor.

2. now banks cannot recover said debts from ur father nor from you as they are time barred.
R.K. Nanda
Advocate, New Delhi
457 Answers
0 Consultations
3.8 on 5.0
Hello,
Since the debts are unsecured personal loans and most likely without a guarantor  and the fact that your father the debtor is currently untraceable are reasons why the bank is trying to put pressure on you to recover the 'bad' debt.
Legally you are not bound by the personal debt of your father, however morally you are liable to pay knowing that he has indeed incurred them.
You can offer to pay and ask for time for a settlement.
If the bank is able to trace your dad it will use the same pressure tactics to recover the funds.On your dad's part he can negotiate for a settlement.
S J Mathew
Advocate, Mumbai
1954 Answers
66 Consultations
5.0 on 5.0
It will be barred by limitation if three years are over.if till now bank has not initiated any proceedings you need not pay the amount back.dont get worried change your number.
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultations
3.5 on 5.0
1. At the outset it may profitably be mentioned that children are not obligated in law to pay the debts contracted by their parents unless there is an agreement to the contrary. There would be an agreement to the contrary if the son or daughter, as the case may be, has consented to be a guarantor of the loan. The liability of children will also arise if they have inherited some property of father.

2. If you neither stood as the guarantor of the loan nor have inherited any property of your father then you are not liable for the debt of your father.

3. Furthermore, the debt contracted in 2003-04 cannot be claimed by the banks after 10 years as it is barred by the limitation of time.

4. The next time a bank approaches you for recovery of the loan taken by your father you should tell it very clearly that you are not liable for the same. Let it bring recovery proceedings against you, they will fail.
Ashish Davessar
Advocate, Jaipur
18259 Answers
450 Consultations
5.0 on 5.0
It is time barred debt/loan bank can not recover legally .You are not liable to pay.
S.P. Srivastava
Advocate, New Delhi
703 Answers
13 Consultations
4.8 on 5.0
1. If no property has been mortgaged by your father, the Bank can not do anything immediately to recover its dues,

2. The Bank can not charge you or claim any amount of outstsnding lying in the name of your father,

3. You are also not bound to disclose the whereabouts of your father,

4. If you inherit any property from your father, your liability to the Bank is limited to the selling price of the property inherited by you,

5. If your father has not defrauded the Bank, no criminal case will lie on him,

6. So, if he is found by the Bank, it will file Money Suit against him and serve notice at his new found address,

7. Relax.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
Hi, according to you, you are not a  Co-applicant to the loan transaction you can liable to pay the amount only after the demise of your father provided you are liable to pay to an extent  of property you have inherited from your father.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0

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