Question

Define 'joint Hindu family firm'. Explain the features of a joint Hindu family firm.

Answer 1

Joint Hindu family firm is an organization which is carried on by the members of a joint hindu family. It is governed by the Hindu Succession Act, 2005. It is controlled by the head of the family known as the karta and the other family members are known as the co-parceners. The karta has unlimited liability. A person becomes a member of HUF by birth. Even a minor is its member. Also a female member can also become its Karta.

Features:

1. Formation: For a HUF there should be atleast two members in the family and ancestral property inherited by them. The membership is by birth.

2. Liability: The liability of the karta is unlimited but the liability of the co-parceners is limited to their share in the ancestral property.

3. Control: The control lies in the hands of the karta. He is the sole decision maker.

4. Continuity: It continues even after the death of the karta as after his death the eldest member of the family becomes the new karta.

5. Minor members: A person becomes the member by birth. Thus, a minor is also a member.