Legal Question in Real Estate Law in India

Hi,

There are two parties to a contract. A is the Financier and B is the the receiver of money. For taking the loan from A, B has given a house property as collateral security. The agreement was entered between A and B, but B died before repayment of the loan amount.

According the verbal agreement between them , A was supposed to lend Rs 3lakhs. But amount mentioned in the contract Rs. 5Lakhs.

Questions:

1) Since B died, Is B's wife liable to repay the loan amount with interest?

2) Is B's wife liable to pay Rs. 3Lakhs or 5 lakhs?

3) If she is liable to pay Rs.5lakhs, can she claim that the agreement was entered into on account of coercion( basically without free consent)? If so , will it be valid to exercise the contract as it is entered into with out free consent? AS the contract was accepted by B, can she reject the contract on those grounds of absence of free consent?

In addition, if the property is an inherited property from ancestors. The father of B and C(B's sister) transferred the property in the name of B. During this situation of property being pledged as collateral security, the sister C comes and claims and demands share of the property. Is she entitled to get the share of the property keeping in mind that the property is in the name of B and it is an inherited property?


Asked on 7/19/13, 12:33 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

19.07.2013

Dear Sir / Madam,

Your query is hypothetical since the agreement between the two was verbal and would depend whether or not A has actually advanced any monies to B at all. The onus lies on A to first prove that he / she has given the money to B. All subsequent answers pertaining to B are not relevant.

Regards,

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Answered on 7/19/13, 8:45 am


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