The Hedaya lays down that the guardian has power to carry on trade or business on behalf of the minor just like a person of ordinary prudence can do so in respect of his own business, provided the business or trade is not speculative of hazardous nature.
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The Fatwai Alamgiri empowers an executor to invest minor’s property in partnership and he may enter into partnership with others. In Jajfar v. Standard Bank Ltd., the Privy Council held that though the guardian had the power to enter into partnership on behalf of the minor, the minor’s liability was only to the extent to which he had share in partnership; in no case the minor was personally liable.
ADVERTISEMENTS:
The Madras and the Allahabad High Courts take the view that in those cases where the minor’s property is vested in trade or business, the guardian has no power of imposing any liability on the minor, even though the minor is entitled to profits of the business.
Dubash v. Meyyappa is liable to be misunderstood as it appears to lay down the broad proposition that the guardian cannot enter into any business on behalf of the minor. In this case, it was not established that the minor was admitted to the benefit of the partnership business. It was also observed that the guardian could not involve the minor’s estate in speculative business. Where the capital of the minor, and that of guardian, happens to be invested in the same business, then the guardian should keep separate accounts.