In the light of judicial pronouncements, discuss the following: An HUF is not a legal person.

CS Professional · Drafting, Appearances and Pleadings · PYQS · June 2016
In the light of judicial pronouncements, discuss the following: An HUF is not a legal person.

Answer & Explanation:

A firm or a Hindu Undivided Family is not a legal person and cannot therefore enter into agreements or sue in its own name. This has repercussions as far as commercial arrangements are concerned. For example, an HUF cannot enter into partnership with any person. When the Karta of a HUF enters into a partnership with strangers the other members of the family do not ipso facto become partners ( Firm Bhagat Ram v. Comm. of Excess Profits Tax, AIR 1956 SC 374 ).

Topics: Hindu Law

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