Kumar brothers inherited some ancestral property .They decided to form a Hindu undivided
family consisting of four male members. Mr.Rohit Kumar was the eldest brother so he
became “Karta.” The business took a loan of Rs.25, 00,000 from Indian bank, which was to
be returned with in 5years. Due to poor financial position of the business, they were unable to
repay the loan. Brothers sold the ancestral property for Rs.12, 00, 000 and paid the amount to
Indian bank. The bank filed a case for recovery of balance amount. Mr. Rohit Kumar pleaded
that the loan was taken for the purpose of business, so all members are liable to pay. The court
said all members are responsible only to the extent of their share in business and business
property is already sold but you being Karta will have to repay the whole amount even by
selling your personal property.
Required: a) Was the decision of court to claim the balance loan amount only fromRohit
Kumar justified? Give reason.
b) If Rohit Kumar and his brothers had started a partnership business instead of Joint Hindu
family business and if a similar situation had happened, what would be the court’s decision on
this issue
please tell fast
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Answer:
business purpose of dealing method
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Answer:
business purpose of dealing method
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