Question

Verma brothers inherited some ancestoral property . They decided to form a hindu undivided family consisting of four male members. Mr, Raman Verma was eldest brother so he became Karta. The business took a loan of Rs. 120 lakhs from SBI. , which was to be returned with in 5 years . Due to poor financial position of the business they were unable to repay the loan. Brothers sold the ancestral property for Rs.10 lakhs and paid the amount to SBI. The bank filed a case to repay the balance amount. Mr. Raman Verma pleaded the court that the loan was taken for the business . So all the members are liable to repay. The cour 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.
Which act governs the kind of business discussed in the above case study. (1M)
Was the decision of court to claim only from Mr. Raman is justified? Explain how.(4m)​

Answer 1

Answer:

form a hindu undivided family consisting of four male members. Mr, Raman Verma was eldest brother so he became Karta. The business took a loan of Rs. 120 lakhs from SBI. , which was to be returned with in 5 years . Due

Explanation:

property.

Which act governs the kind of