Legal Question in Business Law in India

HUF partner in firm

Can HUF be partner in partnership firm. Does is hamper validity of firm?


Asked on 5/08/09, 7:46 am

5 Answers from Attorneys
Sumit Mehta S 'n' S Law Offices

Re: HUF partner in firm

The partnership is a relationship between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Hence, to become a partner in a partnership firm, the partner should be a natural person or recognized as person by the law (Company - by virtue of Companies Act 1956). Since, HUF is not a "person", but only group of persons belonging to the same family and carrying on the family business, HUF cannot be a partner in a partnership firm.

The above view is supported by a catena of judgments.

The Supreme Court of India held (AIR-1930-PC-300 & AIR1956-SC-854) - HUF is an association of persons is "not a person" within the meaning of expression in the Partnership Act. "� it is now well settled that HUF cannot enter into contract of partnership with another person or persons."

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Answered on 5/09/09, 12:48 am
Pranav Desai PD Legal & Associates

Re: HUF partner in firm

Yes HUF can be a partner in a partnership firm.

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Answered on 5/09/09, 3:44 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: HUF partner in firm

the karta on behalf of HUF and with permission from other coparceners can become a partner in a Firm using the rescources including Capital of HUF.

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Answered on 5/09/09, 9:11 am
Bala Gatla Not Applicable

Re: HUF partner in firm

there will not be any hamper to the validity of the firm, you( HUF) could be a partner.

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Answered on 5/08/09, 7:52 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: HUF partner in firm

I agree with the above opinion.

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Answered on 5/08/09, 11:53 am


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