NO NOC from bank who is witness to defaulter, person had died and pension work delay no noc

Question

► Say XXX is witness or Gaurantor to YYY. XXX has paid some emi for YYY cause he was not paying. but now XXX is died and pension and other benefits calculation is going on. XXX is shown as a defualter and not given NOC from bank saying until YYY paid full loan no NOC will be given to XXX family. or said that the loan amount will be deducted from XXX family pension or other benefits. kindly guide that bank can have legal right to do that

Answer 1

Dear Client,

I understand your query. Based on your legal query, I would like to give you my valuable opinion. I suggest that the first step is to find out whether XXX is a witness or a guarantor. This is crucial to know as liabilities change. If XXX is a witness, then the bank has no financial liability, and treating the witness as liable by the bank authorities is illegal. If XXX is a guarantor of YYY, then the bank has a legal right to recover the dues from XXX as his liabilities are joint and several. The bank has every right to withhold NOC until it recovers its dues by withholding his account and his assets and estate left by him in case his death occurs before repaying the Loan. Also, the bank cannot fully deduct its loan amount from your future survival or pension.

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NO NOC from bank who is witness to defaulter, person had died and pension work delay no noc

1 Answer