Position of Karta in JHF

Hindu Jurisprudence

1. Position, Powers and Liabilities of Karta in Joint Hindu
Family (JHF)
Dr. Amit Guleria (Double Medalist; Gold and Silver)
Assistant Professor,
Dr. B.R. Ambedkar National Law University Sonepat
Email: [email protected]

2. Everysocialinstitutionschool,college,university,banketc.hasa
personwhoheads/leadsthatsocialunit.
‘Swami’ = ‘Karta’
The joint family system.
A patriarchal organisation.
The senior-most male (generally) member of the family Karta.
TheKartaisasocio-religiousposition,i.e.itrelatestopinddaan,
mukhagni,piousobligation,proprietaryrights,managementof
propertyetc.

3. Who is Karta?
In Hindu law Karta is the HoF/representative/manager of JHF and JHFP.
Family business
Family properties
He/sheisapersonwhotakescareofdaytodayincomings/outgoingsofthe
familyandlooksafterthefamily.
Management Interest of JHF
General Welfare
of Family

4. Position of Karta
❖Sui generis
❖Its unique from that of other members of JHF.

5. Who can be Karta?
❖Person of sound mind.
❖Must be a coparcener (no outsider/stranger is eligible to be a Karta of
JHF).The Hob’bleS.C. in CIT v. Seth GovindramSugar Mills [1965] 57 ITR
510 (SC)observed that coparcenership is a necessary qualification for the
managership of a JHF.
Minor as Karta: If no other is remained in the family to be a Karta or with
the consent of all other members of family, through a guardian (Rajasekhar v.
SiddalingappaILR 1986 KAR 2765).

6. ❖IftheKartaisunabletolookafterJHFandJHFPorifKartaismissing,evena
juniormembermaybeappointedasaKarta.
❖AKartamayrelinquishhispostvoluntarilyandinhisplacenextseniormale
memberwillbeappointedasKarta.

7. InJaggernathSinghv.Narayan,AIR1965AP300,AminorcanactasaKarta
ofthecommonfamilythroughhisnaturalguardian,hismother,whereone
doesnotknowwherehisfatherisatthattime.
InanothercaseNopanyInvestmentsv.SantokhSingh,AIR2008SC673a
juniormembermayactasaKartaiftheseniormemberhaswaivedhis/her
rightexpresslyorimpliedlyorintheabsenceofthemanagerinexceptional
circumstances.
InthiscasetheKartaoftheJHFwasremainingintheU.K.andsubsequently
couldn’tlookafterthefamilyandthefamilyproperty,withtheconsentofall
thecoparcenersandrelativeshismoreyoungersiblingwasselectedasthe
Kartainspiteofthefactthattherewereindividualsmoreeldertohim.

8. Narendra Kumar v. Income Tax Commissioner (1976) 105 ITR 109 (SC).,it was
held that a junior coparcener can be the Karta with the consent or agreement of all
the coparceners.

9. InHariharSethiAndAnr.v.LadukishoreSethiAndOrs.AIR2002Ori110,the
CourtheldthatjuniorcoparcenercanbetheKartawhentheseniormost
coparcenerwaiveshisrightofKartathenajuniormembercanbecomeKarta.
Section21ofGWA,1890empowersaminortoholdamanagerialposition.
Section21,GWA,1890,Aminorisincompetenttoactasguardianofany
minorexcepthisownwifeorchildorwhereheisthemanagingmemberofan
undividedHindufamily,thewifeorchildofanotherminorMemberofthat
family.

10. More than one Karta
ThetruespiritofKartashipsignifiesthattherewillbeone‘Karta’only,and
not‘Kartas’.
However,therecanbemorethanonemanagerialmemberswiththeconsent
ofallothermembers.
InU.O.Iv.SreeRam,AIR1965SC1531Hon’bleS.C.heldthatthe
veryideaoftherebeingtwoKaratsdidnotappear,primafacie,
consistentwiththeconceptoftheKarta.Twopersonsmaylookafter
themanagementofthepropertybutthejointfamilyisrepresentedonly
byoneKarta.ThereforethereisnoscopefortwoKartasortwo
representatives.

11. Daughter as Karta
❖Righttoequality:AConstitutionalmandate.
❖Daughtersaregiven‘proprietaryequality’bywayof
AmendmentinHSA,1956by(Amendment)Act,2005.
Hon’bleS.C.I.inVineetaSharmav.RakeshSharma&Ors.
(11
th
August,2020)heldthatdaughterspossesscoparcenary
rights,atparwithsons.Thisjudgmentresolvedtheissuesof
prospectiveandretrospectiveapplicationofthe2005
AmendmenttoHinduSuccessionAct,1956.
ArunMishraJ.“Daughtersarealwaysdaughters”.

12. ❖However,thisequalitywillremainincompleteifthedaughterisnot
allowedtobeKarta.
InthelandmarkjudgementofDelhiHighCourtinMrs.Sujata
SharmavShriManuGupta(2016)226DLT647has,afterthe2005
amendmenttoHinduSuccessionAct,1956broughtthenextstepto
realisingequalityofwomenintheHinduUndividedFamily.
ThecourtfoundthatwhilefemaleshaveequalrightstoHUF
property,theyalsohavetherighttomanagethesamepropertyas
Karta.
CourtfoundnorestrictionsregardingafemaleKartainSection6,
HSA.

13. ❖Thus,afterthedeathofthefatherinaHUF,ifdaughteriseldestthenshe
becomestheKartaofthatHUF,withthemotherandsiblings(ifany)as
membersoftheHUF.
❖Hence,marriedorunmarrieddaughtersmaynotonlyclaimcoparcenary
inHUFpropertybutmayalsoclaimrightstomanagethesameHUF
propertyasKarta,providedtheyaretheeldest.
❖ThismeansthatjustasasoncanbeaKarta,byvirtueofbeingbornthe
eldest,adaughtercanalsobeaKartagiventhatshewasborneldest.Also,
evenafterbeingmarriedadaughterretainsherrighttocoparcenaryand
alsotherighttobeKarta.

14. ❖Infact,awomanmayevenbeadefactoKartainthefamilywhereshe
marriesandadejureKartainherbiologicalfamily/familyoforigin,
providedthatsheisawidowandistheonlymajorinthefamilyshe
marriedintoandistheeldestinherfamilyoforigin.
❖WiththisjudgementtheequalrightsofdaughtersintheirHUFhavebeen
fullyrealised.Daughterswouldhavethesamerightsandliabilitiesassons
regardingtheHUFpropertyforallmeansandpurposes.

15. Powers of Karta
❖Power to manage joint family business.
❖Power over income and expenditure.
❖Power to contract debt for family purposes.
❖Power to enter into contracts.
❖Power to refer to arbitration any matter involving the interest of JHF and
the other members of the family including minors.

16. ❖Powertoenterintocompromiseinanymatterrelatingto
JHP.
❖PowertogivedischargetothedebtduetoJHF.
❖Powertoacknowledgedebtsormakeapartpaymentofit,
soastoextendtheperiodoflimitation.
❖Powertorepresentinsuits.
❖PowerofalienationofjointHindufamilyproperty.

17. Liabilities of Karta
❖Toprovidefood,cloth&shelter.
❖Toprovidemaintenance.
❖Tomakeprovisionsforeducationforcoparcenersrequiringso.
❖Torealizethedebt(s)duetothefamily.

18. ❖Torenderaccountstotheothercoparcenersregardingthe
incomefromJHFPandexpenditurethereon.
❖TospendtheJFFsonlyfortheinterestoftheJHFand
shouldspendsuchfundsreasonably.
❖Nottoalienatethecoparcenarypropertywithoutlegal
necessityorbenefittotheestate.
❖Nottostartanewbusinesswithouttheconsentofother
coparceners.