Powers of Karta or Manager Regarding Joint Family Property
In Ramdayal and others v. sunny Bhanwarlal and others, AIR 1973 Raj. 173, the Rajasthan High Court held that regarding the transfer of joint family property by the manager, the principles of law are well settled and are as follows:
- The Manager of a joint Hindu Family has the power to alienate (transfer) for value the joint family property so as bind the interests of both adult and minor coparceners in the property, provided that the alienation is made for legal necessity (Apatkale) or for the benefit of the estate (Kutumbharte) or for Indispensable duties (dharmarthe) which are religious, pious, or charitable such as sradha, upananyana, and performance of other necessary sanskars. Payment of debts incurred for family business or other necessary purpose constitute a legal necessity.
- That the burden of proving legal necessity to support alienation is upon the alinee.
- That the alinee can succeed not only on proof of legal necessity but also on proof that the alinee made reasonable inquires and was satisfied as to the existence of the legal necessity.
It is sufficient it to say here that the Karta or the manager can create a charge against the joint family property, only if the loan for which the charge is created, is taken for a purpose necessary or beneficial to the family. The burden of proving legal necessity lies on the banker and the banker has not only to prove the legal necessity but also to prove that it made reasonable inquiries and was satisfied as to the existence of the legal necessity.
1. Kartha is the senior most male member(most of the times) of the family (Jandhyala Sreerama Surma v. Nimmagadda Krishnavenamma, AIR 1957 AP 434) 2. Only the Kartha has the right to manage the property and business of the HUF. 3. Kartha can enter into contract on behalf of the HUF and bind all the members to the extent of their share in the property/business 4. If the coparceners so desire, all the coparceners and Kartha may authorise any one or more adult coparceners to manage the business. Such a person (s) is/are known as “Manager(s)”
The last point was also upheld by the Supreme Court ( quoting from Mulla's Hindu Law ) in NarendraKumar Modi v. CIT (1976) ITR 109 (SC)
Read more about this topic: Hindu Undivided Family
Famous quotes containing the words powers of, powers, manager, joint, family and/or property:
“A multitude of causes unknown to former times are now acting with a combined force to blunt the discriminating powers of the mind, and unfitting it for all voluntary exertion to reduce it to a state of almost savage torpor.”
—William Wordsworth (1770–1850)
“The powers of the federal government ... result from the compact to which the states are parties, [and are] limited by the plain sense and intention of the instrument constituting that compact.”
—James Madison (1751–1836)
“Nothing could his enemies do but it rebounded to his infinite advantage,—that is, to the advantage of his cause.... No theatrical manager could have arranged things so wisely to give effect to his behavior and words. And who, think you, was the manager? Who placed the slave-woman and her child, whom he stooped to kiss for a symbol, between his prison and the gallows?”
—Henry David Thoreau (1817–1862)
“I learned from the git-go in the joint to get in touch with the soft, nurturing side of myself, the feminine side.”
—Wesley Strick, U.S. screenwriter, and Martin Scorsese. Max Cady (Robert DeNiro)
“The family environment in which your children are growing up is different from that in which you grew up. The decisions our parents made and the strategies they used were developed in a different context from what we face today, even if the “content” of the problem is the same. It is a mistake to think that our own experience as children and adolescents will give us all we need to help our children. The rules of the game have changed.”
—Lawrence Kutner (20th century)
“By rendering the labor of one, the property of the other, they cherish pride, luxury, and vanity on one side; on the other, vice and servility, or hatred and revolt.”
—James Madison (1751–1836)