Bank cannot force the wife of a borrower to pay the amount
The city civil court last week told a private bank and its recovery agents not to harass a woman whose husband had defaulted on a personal loan. The court ruled that the bank cannot recover or force the wife of a borrower to pay the amount due to them. The woman is not a party to the transaction between “the bank and her husband”. Neither is she the guarantor for the loan.
Usha Saraswathi runs a successful retail store at Nagarabhavi named ‘7 to 9’. In 2008, Usha’s husband Krishna Prasad managed to get a Rs 3 lakh personal loan from a private bank. He lost his job and failed to pay the EMIs. When Krishna Prasad failed to do so, they started turning up at Usha’s store demanding that she pay the EMIs. They forced her to cough up one EMI and continued harassing her to pay the balance. The agents used to forcibly took the money earned on that day. Usha moved court after recovery agents forcibly tried to take items from her retail store and harassed to repay balance.
Usha says that it is responsibility of her husband to repay the loan and bank’s recovery agent cannot harass her to repay the entire loan. She says that she can lend a hand, but cannot repay the entire loan. The recovery agents forced her to cough up one EMI and continued harassing her to pay the balance. She approached the court when recovery agents forcibly tried to take items from her retail store and harassed her to pay the balance. It was her hard-earned money, which she needed to look after her family.
Source: Bangalore Mirror
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