Legal Question in Banking Law in India

Re: opening of the current account

You cannot open an account styled as "ABC Enterprises" represented by an HUF. Tell the person who wants to open the account that the account in the trade or business name can only be opened as a sole proprietary firm represented by him as "sole proprietor" and no addition of HUF. In view of the above position the other hypothetical questions do not arise. Even if the account is opened in the name of the trade or business name represented by propreitor, he will be liable individually and any attachment order against him in his individual name or trade or business name will have to be given effect to. In case he dies without nomination, his legal heirs can claim the credit balance in the account by production of succession certificate or probate or Letters of Administration or by indemnity provision, the latter if the amount is insignificant

Re: opening of the current account

Yes, you can open such account. 1) In such case account will be a sole proprietorship but operated by the Karta of HUF. 2) In case of the death of the person operaing the account the money will vest with the nominee or other coparceners of the family.

3) Yes the account will be attached.