Liability of other members of karta in joint Hindu family business

In a joint Hindu family business, the karta is the head of the family and is primarily responsible for managing and conducting the business. However, other members of the family also have certain liabilities and responsibilities towards the business. Let's discuss the liability of other members in detail.

1. Limited liability:
The liability of other members of the joint Hindu family business is typically limited to their share in the business. They are not personally liable for the debts and obligations of the business beyond their individual share.

2. Liability for debts:
While the karta is primarily responsible for the debts and obligations of the business, other members may also be held liable to some extent. If they actively participate in the management of the business or if they have given their consent or guaranteed a particular transaction, they can be held personally liable for the debts arising from such transactions.

3. Liability for wrongful acts:
If any member of the joint Hindu family business commits a wrongful act or engages in fraudulent activities that cause harm to the business or any third party, they can be held personally liable for their actions. This includes situations where they misappropriate funds, engage in embezzlement, or violate any legal obligations.

4. Liability for negligence:
If a member of the joint Hindu family business negligently performs their duties or fails to exercise due diligence in managing the affairs of the business, they can be held liable for any losses or damages incurred as a result of their negligence.

5. Liability for tax obligations:
All members of the joint Hindu family business are jointly and severally liable for fulfilling the tax obligations of the business. This includes filing tax returns, paying taxes, and maintaining proper accounting records.

Conclusion:
While the karta holds primary responsibility for the joint Hindu family business, other members also have certain liabilities. Their liability is generally limited to their share in the business, but they can be held personally liable for debts, wrongful acts, negligence, and tax obligations under certain circumstances. It is important for all members to fulfill their responsibilities and act in the best interest of the business to minimize any potential liabilities.

Except the Karta, the liability of all other members is limited to their shares in the business. The Karta is not only liable to the extent of his share in the business but his separate property is equally attachable and amount of debt can be recovered from his separate property.