Parternership by Legal heirs of Karta of HUF

sardul singh (Querist) 05 June 2009 This query is : Resolved
After death of Karta of HUF, the property of HUF was partitioned between the brother of Karta and legal heirs of Karta. And under the partition deed one of the business went to wife and 3 sons of Karta. Now, can these legal heirs become partners under a partnership deed to carry on the same business which was earlier carried on by the Karta of the HUF?

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A V Vishal (Expert) 05 June 2009
Yes they can, they can reconstitute the business of the karta as a partnership and carry out the business, the share each heir received can be invested towards the capital of the firm.

Y V Vishweshwar Rao (Expert) 05 June 2009
yes they can carry on the Business with partnership Deed between wife & 3 sons- I agree with the opinion of Mr Vishal

suren (Expert) 05 June 2009
After the dead of the Karta of HUF, one of the son (preferably elder son) may become the Karta of same HUF.

The HUF may carry the same business as before

Y V Vishweshwar Rao (Expert) 05 June 2009
Yes Mr Suren you are right- one should become Kartha of HUF

G. ARAVINTHAN (Expert) 06 June 2009
Of Course.
Since the said business is their share in the partition, it is possible for them to make a partnership agreement and run any business

arunprakaash.m. (Expert) 06 June 2009
Yes the Huf can be converted in to a partnershi firm with new partnership deed

B.B.R.Goud. (Expert) 06 June 2009
Yes. The legal heirs shall become partners under a partnership deed to carry on the same business, which was earlier carried on by the Karta of the HUF, if at all they are willing and competent.

A. A. JOSE (Expert) 06 June 2009
Of course, conversion of HUF into partnership as opined herein above is tenable.

J K Agrawal (Expert) 09 June 2009
The business in the hands of heirs is in nature of HUF business. Proper way is first dissolve the HUF Business and convert it in term of shares of coparceners and then the same (or any other) amount should be taken as capital in new partnership firm.

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