VIJAY RAGHAV (Self Employed) 14 October 2010

Legal Heir of HUF

Our Company has entered in to a rental agreement with HUF. The kartha of the HUF passed away recently and now his only son has became Kartha of that HUF. We insisted on the new agreement and he signed the agreement as kartha of that HUF. He is insisting to pay the rents in HUF name whereas we argue that the name of HUF to be changed as the kartha has changed and the cheque will be issued in son's name. Pl help me in resolving this with relevance to sections of HUF

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5 Replies

R.Ramachandran (Advocate) 14 October 2010

Please indicate what was the "Payee's name" that you used to fill up when the father of the HUF was alive.

Now what is the name of the "Payee" that you want to fill up.

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE ) 14 October 2010

Since you have entered into fresh agreement so issue cheque in the name currently in the agreement.

There may be glitch for the landlord for IT but HUF status will continue with new karta.

VIJAY RAGHAV (Self Employed) 15 October 2010

the old payee name: Jeethanand B Khanna and the new payee name: Manoj B Khanna

R.Ramachandran (Advocate) 15 October 2010

I was wondering whether the cheque was being issued as "Kartha, ...... (HUF)". But since you say that you earlier used to issue the cheque in the name of his father (since deceased), now the cheque should be drawn in the name of Mr. Manoj B. Khanna only.

In case he has to change the name in the bank records, he should get it done at his end.