Q: A government employee took a loan from a nationalised bank. After his death, his wife, also a government employee, received Rs 8 lakh from his office. She draws a family pension too. Is it the guarantor's responsibility now to repay the dues or his legal heir's?

Safdar Ali Khan, Calcutta

A: If there is a guarantor to a loan, then it is the his responsibility to repay the amount when the borrower dies or defaults on repayment. The heirs are not automatically liable to repay the amount. However, according to the Indian Contract Act, in the absence of a guarantor, the heirs may be made liable if the loan agreement says so.

 

Q: My mother owned a flat in a co-operative housing society. She died intestate in May 2013. I am the only legal heir. When alive, my mother had made her grandson, my only son who is 23 years old now, the nominee to the flat. The society is refusing to transfer the flat and my mother's share in the society to him on the plea that, according to the Hindu Succession Act, the shares can be transferred only to the legal heir and not the nominee. What is our legal position?

Abhijit Ray Choudhury, Calcutta

A: The provisions of the West Bengal Co-operative Societies Act supersede any other law. If a nominee is appointed, the Hindu Succession Act, 1956, will not govern the transfer of shares or interest. Subject to the by-laws of a co-operative society, a member may nominate a person from his family to whom his share or interest is to be transferred after his death. However, grandsons - unless they are the sons of a predeceased son - are not included in the definition of 'family' in Section 2(K) of the rules as well as Section 16 of the act.

 

Q: According to a certain sale deed, a sister and brother have bought a flat. The cost was borne by the sister alone. Do both of them have equal rights in the property? Can one say that the brother has no interest in the property?

Mohammed Iqbal, via email

A: Since the sale deed has both the names, legally, both the brother and the sister are entitled to the property in equal ratio. The sister cannot deprive the brother of the property just because she has borne its cost.