'Ascertain whether person being sued is dead or alive': Court on SBI's suit against dead man
PTC News Desk: A Delhi court dismissed a suit for recovery filed by the State Bank of India (SBI) against a person who died two years before the suit was filed. While dismissing the suit, the court stated that a dead man cannot be sued under Indian law.
The suit was filed to recover Rs 13,51,973 plus interest at the rate of 11.10% per year. The suit was filed against Siya Nand.
According to District Judge (Commercial) SS Rathi of Karkardooma Court, the suit is liable to be rejected because a dead man cannot be sued under Indian law, and the cause of action with the bank suing a loan defaulter ends with the person's death.
However, under the law, his or her legal heirs as defined by the Indian Succession Act, the Hindu Succession Act, or other personal laws can be sued by the bank if they inherit the deceased borrower's estate.
The court also clarified that the flaw in this suit cannot be corrected by filing Order 22 Rule 4 Civil Procedure Code (CPC) applications because such applications can only be filed if a defendant dies while the suit is pending or being tried.
"Any bank, especially SBI, being the leading bank in our country, is expected to take proactive steps to ascertain whether the people being sought to be sued by it are dead or alive," said the court.
The court directed that a copy of this order be sent to the Secretary (Finance), Ministry of Finance, Banking Division, Government of India, and the Chairman, Indian Bank Association, for information and any necessary corrective action, if any, on their part, with notice to this Court.
- ANI
