How to safeguard huf property from attachment?

Querist : Anonymous (Querist) 22 March 2023 This query is : Resolved
Sir, I am a guarantor for my friend who is the principal borrower in a cooperative bank. The principal borrower is a defaulter and doesn’t have assets to repay the loan. I have formed HUF for which I am Karta. To recover the loan of the principal borrower could the bank attach My HUF Bank account and HUF property which was gifted by my brother to My HUF ?

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If you've acted as a guarantor for a friend's loan and the borrower defaults, your personal assets may be at risk. However, your Hindu Undivided Family (HUF) property, including bank accounts and gifted assets, is generally protected from attachment by the lender. As Karta, you cannot pledge HUF property for personal reasons, and its sale requires the consent of all coparceners. While lenders can attach your personal property, they typically cannot seize HUF assets unless the HUF was formed after the guarantee became legally enforceable.

T. Kalaiselvan, Advocate (Expert) 22 March 2023
Karta means manager of joint family and joint family properties. He is the person who takes care of day to day expenses of the family looks after the family and protects the joint family properties.
The guarantor for your friend has nothing to do with the HUF property neither the lender can attach your HUF Bank account nor the property belonging to HUF.
The karta do not have powers to p-ledge or mortgage the HUF property for his own private purposes.
no individual coparcener, including the karta has any power to dispose of the joint family property without the consent of all others.
While as head of a Hindu undivided family (HUF), Karta has the power to manage the ancestral Property, an ancestral property cannot be sold by the sole decision of one or part owners, therefore the porperty belonging to HUF cannot be attached by the lender, but he can attach the personal property of the guarantor if the borrower defaults in repayment of loan amount.

P. Venu (Expert) 23 March 2023
The situation could be different if the HUF has been formed after the guarantee has become legally enforceable,

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