• Loan default due to death of proprietor loan under cgtmse scheme.

My father died on 15th january 2016 and he had an unsecured loan of 15lakh from SBI No property attached.It was natural death.Bank stopped the transaction due to which i could not take over the business and capital got stuck in account.They still demand a recovery of 13 lakh from me.I M his Son but i have not inherited any property from him on paper.We have house on lease from Co operative society and a truck in his name.I being his son is not the legal heir on paper yet.
1)Wiill the property get attached which was not attached first during securing loan?
2)what legal action i being his son will face?
3)My personal property will also get attached?
4)It was unsecured loan and bank will get 75% of the loan back from the CGTMSE scheme?
5)Can i pay the 5 lakhs and settle the loan account will bank agree?
6)Should i fight the case in DRTO against bank?
7)Bank lawyer threaned me with jail time how true is it?
8)Can the loan be settled without interest and on emi basis.
Asked 5 months ago in Civil Law from Jamshedpur, Jharkhand
You are liable to pay father debts only to extent you inherit his property 

2) your personal property would not be attached 

4) amicable  settlement is best option 

5) bank can settle for principal amount under OTS   Scheme 
Ajay Sethi
Advocate, Mumbai
23184 Answers
1218 Consultations
5.0 on 5.0
1. The bank can file a suit for recovery of money against the legal heirs of the deceased borrower if they have inherited any property from him. The properties so inherited can be attached in execution of the decree.

2. Your self acquired property cannot be attached under any circumstances,

3. Bank lawyers are habitual of threatening the borrowers and their heirs as they know that the road to recover the money is not easy for them.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
5.0 on 5.0
1) original documents are necessary to create equitable mortgage nt deposit of title deeds 

2) further society NOC is required 

3) Take  a call after deciding with your lawyer 
Ajay Sethi
Advocate, Mumbai
23184 Answers
1218 Consultations
5.0 on 5.0
1.  For recovery of loan, the bankers my attach any asset lying on the deceased debtor's name.

2.  No legal action can be taken agaisnt you for your father's loan liabilities.

3.  NO.

4.  The action will depend on the bank's decision.

5.  You have to negotiate the same with the bank 


6.  Since there is no action on you, as a legal heir if you want to acquire his properties then you may fight back through proper court of law. 


  7.  He cannot threaten you.  Politely inform him that next time when he behaves this way, you will file defamation case agaisnt him for his unlawful activities against you.


8. It depends on how the bank decides on this after you make a request in writing.

T Kalaiselvan
Advocate, Vellore
13970 Answers
127 Consultations
5.0 on 5.0
1) bank can seek attachment order it is for Tribunal to pass orders for attachment 

2) you should make an offer for OTS for principal amount of loan 

3) bank can take recovery proceedings even if it is unsecured loan 
Ajay Sethi
Advocate, Mumbai
23184 Answers
1218 Consultations
5.0 on 5.0
1.  Please note that only the properties lying on the deceased's name shall be attached and not the property which do not belong to him absolutely.



2.  It depends on what amount the bank agrees to this and also an upfront amount and installment etc. 



3.  The loan may be  unsecured but it depends on how bank will initiate the recovery action. 
T Kalaiselvan
Advocate, Vellore
13970 Answers
127 Consultations
5.0 on 5.0
The mortgage can be created even by delivery of xerox copy of the title deed if the deed of mortgage was executed. If the mortgage has not been created then the bank can only file a suit for recovery of money, and then attach the property in execution proceedings.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
5.0 on 5.0

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