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My father is in custody of having self earned and inherited property both his age is 79 and he is running proprietorship firm with cc limit of 40 lakhs and turnover around 80-90 lakhs a annum. My elder brother is associated with him without any legal authority in the firm but controlling the whole firm. I am running a business of my own but bothered of the loan amount which is taken by my father and used by my elder brother which will be forwarded to me after his death. Can I raise the issue of liability fixation of that loan in front of Bank so that liability should not be passed to me.?
Question
My father is in custody of having self earned and inherited property both his age is 79 and he is running proprietorship firm with cc limit of 40 lakhs and turnover around 80-90 lakhs a annum. My elder brother is associated with him without any legal authority in the firm but controlling the whole firm. I am running a business of my own but bothered of the loan amount which is taken by my father and used by my elder brother which will be forwarded to me after his death. Can I raise the issue of liability fixation of that loan in front of Bank so that liability should not be passed to me.? In straight I want Bank should assure repayment liability of that loan towards my elder brother as he is beneficiary or responsible for misuse of that loan amount. As per my knowledge according to finance turnover should be atleast 2 crore pa. Can I do this by sending notice to financing Bank?
Answer ( 1 )
Raising the same before the bank is a futile exercise since the loan is obtained for running the business which is not an HUF concern of any kind. The terms of the loan are important and if the same is taken against the self acquired properties of your father, then you cannot be made liable for payment of loan unless the self acquired property is inherited by you on the demise of your father. If you dont want the liability of the loan to come on you, seek partition from your father during his lifetime or execute some affidavit or family settlement where your brother is also a witness of the same stating that the loan is to be repaid by the brother and the liability if any cannot be imposed on you.