Legal Question in Banking Law in India
Can the properties of HUF be attached in a recovery proceedings against the company and its directors being guarantors where such director/guarantor is Karta of HUF?
3 Answers from Attorneys
the properties may be attached.
The properties of an HUF if its Kartha is the guarantor can be attached. However if the other members of the Kartha are brothers of Kartha, and when they were not concerned with the company can file a claim petition t hat their shares cannot be attached. If the other members are children of the Kartha, they are bound by the doctrine of pious obligation and cannot object to t he attachment unless they show that the company was run for illegal or immoral purposes, which may not be the case if the company is a pure commercial venture.
As a director of the company it may not be attached but in the capacity of gurantor it may be attached.
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