Legal Question in Banking Law in India

Sir,

One person took a personal loan from SBI jointly with his brother. He died due to disease. Bank started recovery from guarantor but stopped after some time. The loan became NPA. Wife was not benefited from the funds of the personal loan. Meanwhile, widow got some final payment from the company where her late husband was working. Rs. 2.5 lakhs. Further, wife got a compassionate employment. Her late husband brother is alive and working. (1) wife wanted to settle the loan by paying some amount say 1.7 lakhs as she had settled some other loan in another bank to the tune of 0.65 lakhs. But the Bank want full amount. She is not there in the loan documents. SBI did not made any proceedings for any recovery. (2) Wife had a fixed deposit of Rs.20,000/- in another branch of SBI. That branch had stopped payment of the maturity amount saying there was loan outstanding on her late husband's name.

(3) Can SBI stop release of maturity amount when wife is not there in any of the loan documents? (4) Can SBI file recovery case against wife as she got some payments and job from the company where her late husband was working?? thanks.


Asked on 7/03/14, 2:08 am

1 Answer from Attorneys

No, according to ground provided by you, the bank can't recovery from the deceased wife, however, some more explanation may be required to provide appropriate advice.

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Answered on 7/03/14, 5:05 am


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