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
3
Answer:
yes, the court's decision is justified because in a Hindu Undivided Family (HUF) business, 'Karta' has unlimited liablity , whereas the liability of all other members is limited to their share in the property of the business.
its the answer....
Answered by
6
Answer:
a.Raj is the karta here
b. Yes, because only Karta has unlimited liability remaining members have limited liability.
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