Family financial crisis
I give below my case details for your perusal and advice. Myself K. Anupkumar along with my wife and 2 daughters are living in my parents’ house in the ground floor at Velachery. My parents are staying at the first floor. I have one sister who got married and living in Madipakkam. I am working in a private firm. My mother was running some local chits for more than 15 years. During the year 2016, we understand that she could not return the amount due to the people and they started complaining to us. Afterwards, we discussed with mother and found that she was having a huge debt of more than 50 lacs. After discussing with family members, we have decided to sell-off the parents’ house within a year and have taken a mortgage loan (by pledging parents’ house) for Rs.30 lacs in August 2016 for settling the debt of some people. We have distributed Rs.25 lacs to people and kept 5 lacs in bank for paying the EMI for 1 year. To our surprise, my mother left the house in October 2016 without informing anybody. We have given police complaint and filed habeas corpus also. We are still searching her. We are not able to sell the parents’ house since the property is in joint name. We do not understand how to pay bank’s EMI from August 2017 under the circumstances. Request your guidance / advise to proceed further. My email : email@example.com
There are people who are ready to purchase properties under dispute. You may sell the property and pay off all the remaining debts of your mother of your mother. OPTION 1
You may pay the debts by yourseflf including EMI and claim for property thereafter, OPTION 2
You may forget about that propert OPTION 3
There are two liabilities in this case: first, the repayment of EMI (loan amount) and second, repayment of the debt.
For the first liability, since the loan was taken against the house as a whole, both of your parents are liable for repayment of the same. Default by any one of the co-borrowers makes the other liable to repay the overdue amount. For this purpose your father’s share of the property may also be taken over by the bank in case of failure to repay the outstanding amount.
For the second liability, the Chit Funds Act 1982, under S. 25, lays down that the foreman i.e, the person who under the chit agreement is responsible for the conduct of the chit is liable to account to the subscribers for the amounts due to them. Hence, in this case your mother is exclusively liable for the repayment of the debt arising out of the chit and the subscribers can recover their amount only out of your mother’s share of the property, without touching your father’s share.
Habeas corpus is a recourse in law through which a person can report an unlawful detention or imprisonment to a court and request that the court order the custodian of the person, usually a prison official, to bring the prisoner to court to determine if the detention is lawful. It is not applicable in the present case. If your father and mother had an explicit liability agreement for the repayment of loan amount then your father can file a suit against your mother for payment of her share of liability arising out of the loan. If your mother does not appear before the court on the date of haring then the court may pass an ex parte order against her and may direct clearance of her liability towards your father out of her share of the joint property (or any other property, as the case may be).
 Available at: https://indiankanoon.org/doc/194827648/.
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