The liability of ‘karta’ in Joint Hindu Family Business is ________.

Correct option is B

In a Joint Hindu Family Business (JHFB), the Karta is the senior-most male (or in modern interpretations, any competent adult member) who manages the entire business. The liability of the Karta is unlimited . This means that if the business assets are insufficient to pay off debts, the personal property of the Karta can be used to meet business obligations.
This unlimited liability is justified because the Karta has complete control and decision-making authority over the family business. Other members (coparceners) have limited liability, meaning their liability is restricted only to their share in the joint family property.
Hence, the correct answer is (b) Unlimited.
Information Booster
1. Joint Hindu Family Business is governed by Hindu Law, not by the Indian Partnership Act.
2. Only members of a Hindu Undivided Family (HUF) can be part of this business structure.
3. Coparceners have limited liability, unlike the Karta.
4. Registration of JHFB is not compulsory.
5. Continuity of the business is ensured as it follows the principle of survivorship.