Rate of Karta in Joint Hindu Family Business

In a joint Hindu family business, the position of the karta is of utmost importance. The karta is the head of the family and has the highest authority in managing the affairs of the business. The rate of karta in a joint Hindu family business can be explained in detail as follows:

1. Definition of Karta:
- The karta is the eldest male member of the joint Hindu family.
- He acts as the manager and decision-maker for the family business.
- The position of the karta is determined by seniority and not by birthright.

2. Powers and Authority:
- The karta has the power to make decisions regarding business operations, investments, and other financial matters.
- He can enter into contracts and agreements on behalf of the family business.
- The karta has the authority to manage the assets and liabilities of the family business.

3. Rights and Duties:
- The karta has the right to receive remuneration for his services in managing the business.
- He is entitled to the profits generated by the family business.
- The karta is responsible for the welfare and maintenance of all family members, including dependents.

4. Liability:
- The karta is personally liable for the debts and obligations of the family business.
- His personal assets can be used to settle the business liabilities.
- However, the liability of other family members is limited to their share in the business.

5. Succession:
- The position of the karta is not hereditary but based on seniority.
- Upon the death or retirement of the current karta, the next eldest male member becomes the new karta.
- The succession is governed by the Hindu Succession Act, 1956.

6. Role in Disputes:
- The karta plays a significant role in resolving disputes within the family and the business.
- He acts as a mediator and strives to maintain harmony among family members.
- If necessary, the karta can take legal action to protect the interests of the family business.

Conclusion:
The rate of karta in a joint Hindu family business is determined by seniority and not by birthright. The karta holds significant powers, authority, rights, and duties in managing the affairs of the business. He is personally liable for the business debts and plays a crucial role in resolving disputes within the family. The position of the karta is not hereditary, and the succession is governed by the Hindu Succession Act.

His liability is unlimited