Legal Question in Banking Law in India

Mortgage of HUF property by Karta for guaranteeing the loan of a third person

Can the HUF property be given as security by Karta for securing the loan given by bank to a third party i.e. can HUF property be given as a third party guarantee

Asked on 8/20/08, 3:54 am

3 Answers from Attorneys

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Re: Mortgage of HUF property by Karta for guaranteeing the loan of a third person

The consent of the coparceners are required by the Karta in this case. Otherwise such security given by the Karta is not valid if the security extends to the shares of the coparceners. But the Karta can offer his share as security against a loan taken by a non-member of HUF.

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Answered on 8/20/08, 8:24 am
Sudershan Goel Sudershan Goel - Advocate, International Visiting Scholar, USA [2008-10]
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Re: Mortgage of HUF property by Karta for guaranteeing the loan of a third person

No, it cannot be, unless it can be shown that the transaction is in the interest and for benefit of HUF.

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Answered on 8/20/08, 9:15 pm
Aniruddha Pawse Aniruddha.P.Pawse Advocates
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Re: Mortgage of HUF property by Karta for guaranteeing the loan of a third person

Yes with consent of other coparcenors

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Answered on 8/21/08, 1:56 am

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