Sharma brothers inherited ancestral property. They decided to form a Hindu undivided (3)
family business consisting four male members. Raj was eldest brother. The business
took a loan of rupees 20, 00,000/- from a bank. Due to poor financial position of the
business, they were unable to repay the loan. Brothers sold the ancestral property for
rupees 10, 00,000 and paid the amount to bank. The bank filed a case for recovery of
balance amount. Raj pleaded the court that the loan was taken for the purpose of
business, so all members are liable to repay.
(a) Who is Karta?
(b) What will be the decision of court in this case and on what basis?
Answers
Answered by
1
Answer:
a. According to above case Raj is karta because he is eldest brother.
b.The decision of court will be according to Hindu undivided family act , the only karta has the unlimited liability due to which Raj is liable for balance amount .
Other brothers has limited liability for the business
Similar questions