Know All About Karta And Its Role In Property Alienation

Powers and Authority of the Karta

The Karta has vast powers. Here is a brief:

• Power of Management: As the head of the family, the Karta can run and manage the HUF. They have inherent powers that no one can question until they are immoral or illegal.

• Authority over Family Revenue and Expenditure: Since all members are parts of a joint family and the Karta is responsible for managing everything, members who earn money from outside their family business must pay their income to the Karta. Since no family member can ask for their share of income, Karta is solely responsible for managing and controlling accounts.

• Power of Representation: The Karta represents the family in all social, religious, and legal matters.

• Power to Enter into Compromise: Karta has the power to enter into any compromise related to the joint family’s debts and other transactions.

• Power to Enter into Contract: Karta can enter into a contract on behalf of the family.

• Power to Enter into Contract-Debts: If the Karta takes a debt for a business purpose or another family purpose like the benefit of estate or legal necessity, other family members will be equally responsible for its repayment.

• Power to Refer Arbitration: Karta can refer to arbitration for the family’s interest, including minors.

• Power of Alienation: The Karta can alienate the property with the consent of all co-parceners or for legal reasons.

Role of Karta in Alienation of Joint Family Property

Karta is usually the eldest male member of the family with great importance in a HUF (Hindu Undivided Family). Responsible for managing the family's affairs and properties, they have supreme powers for their management, representation, finances, and property alienation. You must be wondering, can Karta sell HUF property without consent? Usually, the Karta cannot do that except for the following circumstances:

• In case of a legal necessity

• For the estate benefit

• As an act of indispensable duty

The Karta is responsible for maintaining all co-parceners out of the HUF. If they improperly exclude a family member or do not properly maintain them, they can be legally sued and asked for maintenance arrears. In the event of partition, the family members severe their interest and status, and the Karta divides the property according to the specified shares, known as metes and bounds. The Karta takes all joint family assets into account and prepares an inventory. The Karta is not accountable for any past dealings unless there are fraud, conversion or misappropriation charges.

Property Alienation by Karta

Property alienation refers to the disposal or transfer of a property's ownership. It is a crucial legal aspect that regulates property transfer rights in India. While the alienation of joint family property is vital in the context of the Hindu Succession Act, the Karta plays a crucial role in the process.

The Karta is the family’s sole representative and decision-maker responsible for the family’s financial and property management. Although they do not personally own the property, they act as a manager to safeguard the entire family’s benefit. The Karta holds the property alienation power under the following circumstances:

• With consent from all family members

• Without consent from the family members

If express consent is not present, the HUF Karta must transfer the property for the family’s benefit. Furthermore, the Karta must ensure that the property alienation is reasonable and bona fide. If the family members have a disagreement, the Karta may seek the court’s permission for property alienation.

Once the partition happens, the status of a joint family comes to an end and reuniting the family becomes difficult and complicated. Under the Mitakshara Law, family members have the right to separate from the joint family and sever their status and interests. Once that happens, the Karta must render the accounts like an agent or trustee.

Conclusion

The Karta is the leader or head of a Hindu Undivided Family. Usually, they are the eldest male family members, and their duties include property management, income distribution, debt and liabilities management, family representation in legal matters, decision-making on the family's behalf, etc. Understanding the Karta meaning and knowing their powers and limitations will prevent unnecessary conflict when checking loan against property eligibility. Hero FinCorp offers the best mortgage loan interest rates to handle family matters without the alienation of joint family property.

Frequently Asked Questions

1. Can a female member of the family become a Karta?

Earlier, only male members could be the Karta of a family. But after the Hindu Succession (Amendment) Act 2005, a Hindu daughter also got the right to be treated as a co-parcener and become a Karta.

2. How is Karta's authority legally defined?

Article 236 of the Mulla Hindu Law defines "Karta" as a Manager of the Property belonging to a joint family.

3. Can the Karta be removed from their position?

The Karta acquires their position by birth and regulate by seniority. However, it is terminable either through relinquishment, resignation, or defeasibility.

4. What are some famous legal cases that involve the Karta's role?

The case between Amrej Singh and Shambha Singh stated that the test should be of prudent men who can handle their own property, while the Karta can manage the joint family property. In another case between Radhakrishna and Kuluram, the Supreme Court stated that Karta can transact on behalf of the family, and all members must bind with it.