loan by Karta on the FDR in the name of HUF

S.D. Singh (Querist) 24 June 2010 This query is : Resolved
Whether Karta can avail personal loan for himself on the security of property of his HUF, if duly agreed by karta and all other major and minor co-parceners. If not under which law / act it is prohibited.

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A V Vishal (Expert) 24 June 2010
The karta or manager has the power to contract debts for family purpose and family business. A joint Hindu family may have no business at all, and yet debts may be contracted by the manager for a joint family purpose. Such debts are binding on other members.

Adv.Aiyer VLV (Expert) 24 June 2010
if personal loan for himself

is meant to show he took loan not for HUF common benefit or members sake

such loans are not binding. there are enough cases on this

please visit advocate nearby

Sukhija (Expert) 25 June 2010
I agree with the views of expert Vishal

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