Karta ??

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KARTA 🙏🏽

Meaning of Karta

A Karta is the manager of a joint family and its properties. They are responsible for
handling the family’s day-to-day expenses, taking care of the family members, and
protecting the joint family properties.

Who can be a Karta?

Typically, the eldest male member of a family is considered the Karta in a Hindu
Undivided Family (HUF). This means that the father is usually the Karta of the
family. However, the next senior male member becomes the Karta if the father
passes away. If a family member wants to give up their position, they can do so
voluntarily. In some cases, a minor can also become the Karta under the
guardianship of their guardian.

Senior Most Male Member

The senior most male member has the right to become the Karta. Only family
members can be Kartas; outsiders or strangers cannot become Kartas. If the senior
most male member is alive, he will continue as the Karta. If he passes away, the
second senior-most member of the family will take over as the Karta. All the
coparceners accept the position of Karta through consent or agreement.
Junior Male Member

If the coparceners agree, a junior male member can also become the Karta of the
family. Through an agreement with the coparceners, a junior male member can
take on the role of Karta.

Female Member as Karta

According to Dharmasastra, a female can act as the Karta if there is no male


member in a family. Even if male members are present but are minors, females can
act as the Karta.

Traditionally, a female couldn’t be the Karta of a Joint Hindu family or have a


share in the coparcenary property. She could only be the Karta if there was no male
member in the family.

However, the situation has changed. In the case of Mrs. Sujata Sharma v. Shri
Manu Gupta & Ors [CS (OS) 2011/2006], held in 2016, it was established that
the eldest female member of a Joint Hindu Family can be the Karta.

In the case of Vineeta Sharma v. Rakesh Sharma & Ors [Civil Appeal No
32601 of 2018], held in 2020, it was determined that daughters have equal rights in
the coparcenary property, regardless of whether the father was alive or deceased at
the time of the amendment of the Hindu Succession Act in 2005.

So, can a woman be a Karta of a HUF?


According to a ruling by the Delhi High Court, a woman can be the Karta of a
family if she is the eldest member and a coparcener. This was made possible
through an amendment in the succession law in 2005, which granted women
coparcener rights in a HUF. Even after marriage, a daughter remains a coparcener
and a member of the HUF

Powers of Karta:-

With in joint family Karta has vast powers with limitations.

1) Power of management:- He is the head of the family, his management powers


are absolute. He may manage the family affairs and family property and business
the way he likes for the benefit of estate, no one can question his management.

2) Right to Income:- It is general rule that all members who works or do business
out of joint family property must hand over income to Karta. It is for Karta to allot
funds to the members and look after needs and requirements, so long as family
remains joint, no member can ask for any specified share in the income.

3) Right to representation:- He represent the family, represents the family in all


matters, legal, social and religious. He can enter into any transaction on behalf of
the family, his acts are binding on the entire joint family.

4) Power to compromise:- He has power to compromise all disputes relating to


family property or their management. He can compromise pending suits, family
debts, and other transactions. However if his act is not bonafide can be challenged
in a partition.

5) Power to refer a dispute to arbitration:- Karta has power to refer any dispute
to arbitration and Arbitrator’s award is binding on all the members.

6) Power of acknowledgement and to contract debts:- Karta has power to


acknowledge on behalf of the family any debt due to the family, also has power to
pay debt or to make pack payment of debt.
He has power to contract debts for the family such debts incurred in the ordinary
course of business are binding on entire joint family.

Even Karta when takes loan or execute promissory note for family purpose or for
family business joint family is liable to pay such loan.

7) Power to enter into contract:- Karta has power to enter into contract and such
contract is enforceable against the family.

8) Power of alienation:- Nobody in the family has power to alienate joint family
property.

However Karta has power of alienation under 3 circumstances.

a) Legal necessity

b) Benefit of estate.
c) Indispensable duties

Duties of Karta

1)He has the duty of maintaining the members of the family. If the Karta
improperly excludes any member for maintenance or does not properly maintain
them, then he can be sued for maintenance as well as for the arrears of
maintenance.

2)To pay taxes on behalf of the family and he can be sued for all his dealings on
behalf of the family.

3)To recover debts due to the family.


The Karta is not supposed to keep accounts of how he has spent the family funds,
but where a coparcener demands partition, he can require the Karta to give him
accounts.

4)Partition when demanded is a great check on Karta’s power.

Position of Karta:-

1)Karta is sui generis (of its own kind) the relationship between him and members
is not like principal or agent or like partners in a partnership firm.

2)He is the head of the family and acts on behalf of other members.
3)He stands fiduciary relationship with other members but he is not a trustee,
nobody can question what he spent unless charges of misappropriation.

4)When any coparcener charges of improper alienations made by Karta, burden of


proof lies on him to prove such are malafide act of Karta.

Karta’s power of alienation:

The power cannot be exercised by any member other than the Karta. The joint
family property can be alienated on three grounds:

1)Legal necessity
2(Benefit of estate
3)Indispensable duty (religious & pious activities)

It is now a settled law that Karta can alienate the joint family property with the
consent of the coparceners even if none of above exceptional circumstances exists.
Kandasami vs. Somakanda (1912)

But an alienation without the consent of the coparceners which is not for legal
necessity is held to be void. Manohar vs. Dewan (1985) P&H 313

The Karta’s alienation in the aforesaid circumstances also binds the interest of the
minor coparcener. Bharat vs. Nachiar (1976)
It may be taken to be a well settled law that alienation by the Karta without legal
necessity or benefit of the estate or in discharge of indispensable duties is not void
but merely voidable at the instance of any coparcener. Raghubanchmani vs.
Ambika Prasad (1971) S.C. 776

In CIT v Gangadhar Sikaria Family Trust held that the alienation of property by
Karta without any legal necessity/ benefit of estate/ discharge of indispensable
duties is only voidable at the instance of any coparcenery and not void.

In R.C. Malpani vs CIT Where HUF is governed by Mitakshara School of Hindu


law and property is alienated by Karta without legal necessity or benefit of minors,
it is only voidable and not void, and therefore, any income derived from properties
so transferred is not assessable in hands of HUF.

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