Legal Question in Bankruptcy in India

Father has assumed liability.. sons' are responsible?

Thanks for any suggestions in this matter.

My father has signed some promisiory notes and contract with a third party. His liability is so huge he can't repay. His assets are only 10% of liability. However, we (sons) has earned property and assets on our own capacity and now creditors are threatening to sue us for our father's liability. My question is Can creditors sue us for entire liability of my father even though we are not inheriting any property from him ..Also Can he use Bankruptcy as a mean to get rid of all liability.

Please include your contact information. We are looking for a law firm to represent us.

Thanks


Asked on 11/11/03, 11:18 am

1 Answer from Attorneys
Mahesh T. Pai M. A. T. Pai & Mahesh T. Pai

Re: Father has assumed liability.. sons' are responsible?

It is not clear why the creditors are threatening you for your

father's debts. Were the debts incurred by him in his capacity as

karta of HUF?

Your father can certainly avoid payment if he is bankrupt, and the

bankruptcy is genuine.

Again, you said "... we are not inheriting any property from him"

Why does the issue of inheritance arise? Your father is alive, is it

not? So long as he is alive, he is the only person liable for his

debts, unless the children have stood surety / guarntee for

him. After his death, you are liable to the extent of the property

inherited by you; if you do not inherit any property, you are not

liable for anything.

As to the other issues, please refer to "view attorney profile" pages, or you can contact me by e-mail. I have associate offices throughout South India and in New Delhi.

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Answered on 11/12/03, 7:09 am


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