Gopal Sharma and Balram Sharma are two brothers , who inherited some ancestral property . They decided to form a Hindu Undivided Family (HUF) business consisting of four male members . Gopal Sharma is the elder brother . So he became 'Karta' . The business took a loan of ₹ 20 lakh from Punjab National Bank having maturity period of 5 years . Due to poor financial position of the business , they were unable to repay the loan . They sold the ancestral property for ₹ 10 lakh and paid the same to Punjab National Bank . They could not pay the balance amount of loan with interest . The bank filed a case for recovery of the balance amount . Gopal Sharma pleaded the court that the loan was taken for the purpose of business , therefore , all the members of the business were liable to repay the loan . The court held that all other members were responsible only to the extent of their share in business , and the business property was already sold . However , Gopal Sharma , being 'Karta' would have to repay the balance amount even by selling his personal properties . Gopal Sharma had to sell some of his personal assets to repay the balance amount to bank loan .
(a) Is the court's decision justified ? Give reasons in support of your answer .
(b) State any three other feartures of HUF businesses .