Huf as a partner in partnership firm

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Cavimal

Cavimal (Querist)
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26 February 2014 Can 2 HUF's create a partnership firm? If, yes what about Partners' Remuneration?

Mr.Manish

Mr.Manish (Querist)
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26 February 2014 One of my friend whose father died before 2 years.
After that my friend's elder brother deny to give his share from father property. His elder also forcefully takeover too many from his father by preparing WILL from his father.

My friend is married and have two children.
Can any one advise on it ? please

Arvind Ray

Arvind Ray (Expert)
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27 February 2014 Your query is not clear but it appears that your friend is unsatisfied with the Will of his father. As far as legal remedy is concerned, he can challenge the will on certain grounds in the court.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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02 August 2025 This situation involves both **partnership law** (HUF as partners) and **family/inheritance law** (property and WILL disputes). I'll address both parts clearly:

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### 1. Can 2 HUFs create a partnership firm?

* **Yes**, two Hindu Undivided Families (HUFs) can form a partnership firm.
* Each HUF is represented by its **Karta**, who acts on behalf of the HUF in the partnership.
* The partnership deed should clearly mention the names of the Karta(s) representing each HUF.

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### 2. Partners' Remuneration

* Partners’ remuneration paid to the Karta (on behalf of HUF) is allowed as a business expense subject to limits under **Section 40(b)** of the Income Tax Act.
* Remuneration should be reasonable and documented in the partnership deed.

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### 3. Regarding the family property and WILL dispute

Your friend's issue is about **inheritance rights** and **validity of WILL** after father's death.

* If the father made a WILL, it usually overrides the default inheritance under Hindu Succession Act, provided it was validly executed and registered.
* However, if the elder brother **forcefully took over property or denied rightful shares**, this could be **illegal and actionable**.
* Your friend, as a legal heir, has the right to claim his share of the inherited property under **Hindu Succession Act, 1956** (unless specifically excluded by a valid WILL).
* The **WILL** can be challenged in a civil court on grounds such as:

* Lack of testamentary capacity
* Undue influence or coercion
* Forgery or fraud
* Your friend can file a **civil suit for partition and declaration of rights** or **challenge the WILL** if he suspects any irregularities.

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### 4. Suggestions for your friend:

* **Consult a good property/family lawyer immediately** to assess the WILL and property documents.
* Collect all documents related to the father's estate: WILL, property papers, death certificate, etc.
* Consider filing a suit for **partition** if the property is ancestral or joint.
* Legal action can help protect his and his children’s rights.

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### Summary

* Yes, two HUFs can form a partnership with Karta(s) representing them.
* Partners’ remuneration is governed by tax laws (Section 40(b)).
* Regarding the family dispute, your friend has legal rights as an heir and can challenge unfair possession or WILL in court. Legal advice is necessary.

If you want, I can help you draft a summary letter or checklist for the lawyer. Would you like that?

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