Legal Question in Banking Law in India

My brother has taken a personal loan from hdfc bank and now he is not returning it. Bank has put up a case against him and he has been absconding and not appeared for any of the hearings. Court has ordered a non-bailable warrant against him.

We (father) have been getting calls from bank recovery and layers that the next step will be to kurki japti of our house. The property (house) solely built and owned by our father.

What I want to know and understand is how are guardians responsible for any act of crime or cheat or whatsoever committed by their children (above 18 years of age). Can court/law hold parents responsible for their children act. And can they really issue kurki japti even though the property is in solely in fathers name. And none of the documents in the loan application has been signed or endorsed by any member of the family, neither any kind of house/property document has been used for getting the loan.

Just on the basis of permanent residence address and family relations can someones family (parents) be made responsible and forced to pay off.


Asked on 2/23/17, 10:41 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

24.02.2017

Dear Madam / Sir,

If the Court has ordered a non-bailable warrant against your brother, the matter lies in the jurisdiction of the Police to intervene in the matter. The loan agreement usually has a implied clause or provision regarding the extension of the responsibility of repayment and settlement of the loan on the legal heir(s) of the borrower, if he / she is absconding, although the primary responsibility for repayment and settlement of the loan vests in the borrower. All the facts, submissions and investigation reports of the authorities and the Police will be relied on to decide on the matter.

Regards.

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Answered on 2/23/17, 6:45 pm


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