Huf and legal action against - unable to payment to supplier
Martin
(Querist) 19 March 2013
This query is : Resolved
HUF Family and Legal action against HUF for not able to make payment to suppliers. Please, Please, Guide me, It's very urgent and we all family members are in fear.
We are Hindu Undivided Family (HUF). We have started a business around 10 years before and business was having normal profit.
We were unable to collect from our debtors since years and there is no way to get recovered amount from them in atleast next 5 years or so and this amount is in lakhs.
Till this time, our creditor has waited a long to recover amount from us for purchase made by us from them. They were supportive BUT now One of our creditors has filed a case few months back and is under court processing?
1. What legal action he can take against House Property of HUF, House Property of any member of HUF, HUF Business, HUF, Karta, Members of HUF and specially Female Members of HUF.
2. Does all of us family member will be liable for this? OR only male member of huf OR Female member of HUF?
3. If the situation is worst and some one need to go to jail, who it would be?
Only Karta, or all Male Member of HUF, Female member of HUF or All member of HUF?
Does Female member exempt from this?
4. Does creditors can recover this amount by selling any member house property or HUF House Property or even he could not claim for sell of the house property?
Please, Please, Guide me, It's very urgent and we all family members are in fear.
Martin
(Querist) 19 March 2013
HUF = Hindu Undivided Family.
Raj Kumar Makkad
(Expert) 21 March 2013
1. Residential house cannot be got auctioned for the purpose of recovery of business debts.
2. This is a civil suit so there is no matter to fear rather the case should be contested effectively.
3. There is no question of jail in such matters.
4. reply has already been given.
