HUF cannot be a partner in firm but it is competent to the manager or karta acting on behalf of the HUF to enter into a valid partnership

Coal India Ltd. & Anr. Vs Continental & Eastern Agencies (Delhi HC) In the case reported as (1967) 66 ITR 613 (SC) Ram Laxman Sugar Mills v,Commissioner of Income-Tax, U.P. & Ors. the Hon’ble Supreme Court has categorically held that it is open to the manager of a joint Hindu Family as representing the family to agree to become a partner with another person. The partnership agreement in that case is between the manager and the other person and by the partnership agreement no members of family, except the manager acquires a right or interest in the partnership. The junior members ...