HUF property can be mortgaged to secure legal debt for the benefit of HUF . The HUF property merely because it is HUF does not make any disability in itself. But the Karta can offer only his share as security  against  a loan taken by a non-member of HUF I.e. company in your case

Merely a property being HUF property, it does not mean that it cannot be mortgaged. Banks do accept mortgage of HUF properties, depending upon the purpose of the loan and the authority of the person to mortgage HUF property.

2) as Karta of HUF you can mortgage the property for benefit of HUF or legal necessity

Debt Recovery Appellate Tribunal - Delhi

Rajat Pangaria vs State Bank Of Bikaner And Jaipur ... on 24 October, 2007

Equivalent citations: 2008 141 CompCas 323 NULL

Bench: M Jain

ORDER M.C. Jain, J. (Chairman)

3)In the present case, the debt had not been raised by the father (karta) for his personal benefit. It had not at all been taken for immoral or illegal purposes. Rather, the joint Hindu family property including the share of the appellant had been mortgaged for legal necessity, i.e., family business. The appellant could challenge the mortgage with regard to his share only on establishing that the mortgage had been created without legal necessity or it was tainted with illegality or immorality. Far from this being the situation, the reality was that the loan and credit facilities had been availed of by his father (karta of the joint Hindu family) very much for legal necessity, i.e., family business. The same was binding on the appellant. The appellant seemingly had cordial relations with his father (karta of the joint Hindu family) through out. There is nothing to indicate that there was any discordance between 'them. It appears that after attaining majority he, in collusion with his father, started challenging the mortgage of his undivided share on untenable grounds.

A property owned by a huf can be mortgaged with the consent of its members. There is no problem in that. The huf members' consent must be taken.

This is a settled law. When you apply for loan the bank will ask for the papers and if all the huf members consent to it the loan is granted.

- Yes, HUF property can be mortgaged to secure legal debt for the benefit of HUF

- However, the consent of the coparceners are required by the Karta , otherwise, such security given by the Karta is not valid 

A HUF being  juristic person can mortgage a property for securing loan to the extent of its ownership in the land.

The HUF and company are two distinct legal entity and it is not clear why you have mentioned about Group Company.

The capacity of HUF to mortgage property to secure loan by way of equitable mortgage is well settled law and there is no legal ambiguity in it. The filed is replete with legal precedents from both high court and supreme court. 

1. HUF may mortage its property for purposes of Security, to third parties (group Co.) PROVIDED all the HUF members pass & sign a resolution for the purposes, wherein all the HUF members would be liable /prosecutable for default by the group co.

2. This is covered under the Contract Act. For judgment /precedents, kindly prefer to coordinate with a local corporate lawyer after showing him HUF property documents & income tax returns.

Generally HUF properties are not mortgaged by banks because it may contains various disputes later on. Even then if decided to mortgage then all members of such HUF are required to put their signature and sanction in case of minor members is required to be obtained from competent  .

Narendra Kumar Rajgarhia vs State Of Nct Of Delhi on 1 July, 2013

1. Properties owned by its title holders are mortgaged by depositing the title deed and getting the signatures of all the co-title holders of the said property.

2. In the instant case , the said HUF property can be mortgaged after depositing the original title deed and also getting the letter of deposit of the original title deed and the Agreement for Mortgage signed by all the members of the said HUF.

You have not mentioned any issue of dispute to provide citation in that regard.

You can mortgage the same after consent of all

Yes the property can be mortgaged, contact via proper channel of this website for judgments 

1. The power of Karta to alienate the property of HUF extends to mortgage as well.

2. Karta can alienate the HUF property for a) Legal Necessity b)Benefit of Estate c)Indispensable duties.

3. No cases are required on this. This is settled law.

The HUF property is not an individual property that it can be mortgaged for the purpose of obtaining loan for a company. 

The karta can mortgage the HUF property only for the benefit of its members. 

The company is an outsider hence the property cannot be used for company's benefits. 

The position of law is clear that the HUF property is meant for the benefit of its members alone hence nobody has a right to utilize it for the benefit of an unrelated outsider. 

The company is not belonging to HUF,  hence it would be an illegal act. 

I have reproduced judgment of DRAT for your reference in my Earlier reply 

1. Karta can keep HUF property as mortgage for company owned by HUF. 

2. There is no such legal issue in mortgaging the property of HUF.