mca clarification that HUF can not be partner in firm

Tejpal Sheth (Practising company secretary-visiting fa)   (1933 Points)

23 June 2016  
MCA Clarification : HUF cannot be a partner in firm

Ministry of Corporate Affairs, in response to clarification sought by ICAI, states that a Hindu Undivided Family (HUF) cannot become a partner in a partnership firm; MCA states that Karta or any other individual of the HUF can be a partner in his 'individual' capacity and not the HUF; Corporate Affairs Ministry relies on SC ruling in Rashiklal & Company vs CIT wherein it was observed that "HUF being a fluctuating body of individuals, cannot enter into partnership with other individuals partners"