HUF karta Liability

awin (Querist) 04 December 2010 This query is : Resolved
Hi.

I was a director in my relatives Ltd. company. The Company has stopped operations, is into loss and cant pay back bank loans. My question is -

1) Can the bank create an attachment in my HUF. Does in any way my HUF become liable to pay.

thanks
awin
------ contd . . . .

2) Can the bank attach my share of HUF,
3) Can the bank attach my share of HUF bank balance or Shares that i hold.

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A V Vishal (Expert) 04 December 2010
No, since you are a director in your individual capacity bank cannot attach properties of the HUF.

M/s. Y-not legal services (Expert) 04 December 2010
No. The bank can't attach the companies properties for your individual loans..

M/s. Y-not legal services (Expert) 04 December 2010
But the loan on company's name mean the bank can attach it's propertys..

Advocate Bhartesh goyal (Expert) 04 December 2010
I agree with Mr.A.V.Vishal.

DEFENSE ADVOCATE.-firmaction@g (Expert) 04 December 2010
The concept of HUF is legal fiction and normally very rare people keep titles specific in HUF name instead it remains in the individual name of karta.

However the problem of attachment comes when all other avenues are over till than you should be ready with evidence and documents so that you can get injunction.

s.subramanian (Expert) 04 December 2010
I agree with Mr.Vishal.

awin (Querist) 06 December 2010

2) Can the bank attach my share of HUF,
3) Can the bank attach my share of HUF bank balance or Shares that i hold.

thanks, awin

Khaleel Ahmed Mohammed (Expert) 10 December 2010
I agree with Mr.Vishal.

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