Legal Question in Credit and Debt Law in India

My father incorporated a private company limited by shares. The Company took bank loan and my father furnished personal guarantee also. The Company defaulted in 2000 and the bank auctioned the assets of the Company. Some liability of the bank still remains. Now being his legal heir, can the bank recover the remaining debt from me? My father is alive. What will be scenario after his death? Also, can I denounce my legal heirship?


Asked on 8/01/14, 12:58 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

01.08.2014

Dear Sir / Madam,

Since your father has also given a personal guarantee to the Bank for repayment of the loan, the Bank can initiate recovery proceedings against you as the legal heir. In my view, there is no way in which you can denounce that you are the legal heir.

Regards,

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Answered on 8/01/14, 5:01 am


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