Nivedita Bhardwaj Shares Insights with Business Standard on Spouse’s Liability for a Deceased Borrower’s Loan

Nivedita Bhardwaj was recently quoted by Business Standard in an article examining the legal position on a spouse’s liability when a borrower dies with an outstanding loan. The article examines whether banks can recover the deceased borrower’s dues from the surviving spouse and the extent to which the spouse’s personal assets may be exposed.

Explaining the legal position, Nivedita noted that a bank may proceed against the secured asset or the deceased borrower’s estate under applicable laws, including the SARFAESI Act and the Recovery of Debts and Bankruptcy Act, or pursue recovery through a civil suit. She emphasised that any recovery from assets inherited by the legal heirs must be undertaken in accordance with due legal process.

Nivedita further clarified that the deceased borrower’s spouse’s separate property, salary, savings and fixed deposits generally remain protected, unless the spouse had independently guaranteed the loan or offered their assets as security. Her comments provide important clarity on the distinction between a borrower’s liabilities and the independent assets of the surviving spouse, particularly in matters involving banking and finance, debt recovery, secured lending and inheritance.

Read the full article in Business Standard:

https://www.business-standard.com/finance/news/deceased-borrower-s-loan-what-s-the-spouse-s-liability-126100600690_1.html

Last Updated on 7 October, 2026