Can a proprietorship firm would carry the personal liability of the proprietor

Rashmi Jain (Querist) 15 December 2012 This query is : Resolved
Hi

I need your valued and able advise :

I am a Sole Proprietor in a Firm, and I have a Personel Liability - dispute with a Bank, Which is my Name, and No where my Proprietorship Firm is being related nor a Part of my Proprietorship Firm , Can my Proprietorship Firm would carry my Personal Liability as the Proprietor ? Can The Bank attach the Assets of the Proprietorship Firm. Kindly be informed that I have my Suppliers as well as the Investor's Liability in the said Firm, While my staff ongoing salary , Can my Proprietorship Firm's Assets can be treated in legal terms as my Personal Liability and effect my Firm ? As to How can I safeguard the Firm.

Kindly let me have your valuable advise Plz.

Rashmi Jain

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Raj Kumar Makkad (Expert) 15 December 2012
There is no separate legal entity of a sole proprietorship firm so the proprietor and his firm are one and same hence the bank is within his full rights to attach the properties lying in the name of your firm and recover its outstanding as per rules.

Guest (Expert) 16 December 2012
Full liability devolves on the proprietor of proprietory firm case. Proprietor and a proprietory firm cannot be treated as a separate entity in business transactions.

K.K.Ganguly (Expert) 16 December 2012
Yes, the proprietorship firm's asset will be legally treated as the personal asset of the proprietor for all purposes.