Question

State Whether the Following Statement Is True Or False (Give Reason).

The liability of the Karta is limited and that of coparceners is unlimited.

Options

• True

• False

Answer 1

This statement is false.

1. Karta has all the rights in respect of business of the firm. He is the final authority to take any crucial and important decisions.
2. Co – Parceners have no right to challenge or question the decision taken by the Karta in running the business.
3. Thus, In Joint Hindu Family business, the liability of the Karta is unlimited and that of coparceners is limited to the extent of their share.