Lawfully yours: By Retd Justice K Chandru

Your legal questions answered by Justice K Chandru, former Judge of the Madras High Court Do you have a question? Email us atcitizen.dtnext@dt.co.in
Lawfully yours: By Retd Justice K Chandru

Chennai

Pre-closure of loan amount could be tricky
My daughter had taken a housing loan of about Rs 33 lakh. The EMI, which worked out at Rs 35,000, was paid regularly. Later, a lump sum of Rs 15 lakh was paid towards the principal amount. The bank, however, insists that my daughter must continue to pay the full EMI of Rs 35,000. The bank did not rework the EMI as we expected. Are we expected to pay the full EMI even after the principal amount is brought down? Can the EMI be reworked based on the latest outstanding principal amount?
 — Lakshmi Narasimhan, Chennai
In matters of pre-closure of loan amounts, there is always a problem. You will end up paying an extra amount as pre-closure charges. In your case, you are paying only a partial amount towards the loan and want a revised Equated Monthly Instalment (EMI) fixed. That may not be possible at the manager’s level. Either you must foreclose the loan entirely or continue with your existing EMI arrangement. Withdraw your Rs 15 lakh, put it in a fixed deposit, and utilise the extra interest for payments.
To restrict inheritance, one will have to write and register will
You have already clarified my query through this column dated May 17, but I still have one more doubt. As I wrote earlier, I have a flat in Chennai and I would like this property to be devolved 100 per cent first to my wife and then only to my son in the event of my demise. Will it happen naturally in that order, i.e. first to my wife and then my son? I ask this because I also have a daughter-in-law and a grandson. Will it suffice to specify this on a plain sheet of paper with two witnesses, or is a will required?
— P V Krishnamurthy, Gopalapuram
If you want to restrict inheritance and allow limited enjoyment for one of the survivors or exclude some of the inheritors, the only option is writing a will and getting it registered. In that will, you can always say that only after the enjoyment of the property by your wife till her lifetime, only then will your son get the inheritance of the flat property.
DISCLAIMER: The views expressed here are of Justice K Chandru, who is providing guidance and direction based on his rich experience and knowledge of the law. This is not a substitute for legal recourse which must be taken as a follow-up if so recommended in these columns

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