Co-borrowers on a vehicle loan for business!

" Vehicles are being used for Business"

All the answers are based on constitution of the business or businesses!!!

Originally posted by : Dhirajlal Rambhia
	" Vehicles are being used for Business" All the answers are based on constitution of the business or businesses!!!

Originally Business was in the name of a firm with Father as a Proprietor.. 

Son joined the business laters.. 

But the firm is still a proprietorship in the name of father.. 

Son does the same business with father under his own name without any partnership on paper with father's firm.. 

Both the vehicles were bought after 2 years after the son joined the business

"Vehicles are in the name of Son..  But loans taken for both the vehicles have both father and son as co-borrowers.."

1. Isn't is crooked up, when both are running proprietorship businesses independently?

2. No clear cut solution to the mess, unless the whole business is declared in HUF file u/s. 44AE. (Provided the vehicles are trucks or any goods carriage)