Karta: His Position, Powers, Privileges and Obligation | Family Law - CLAT PG PDF Download

Karta in Hindu Joint Family 

Who is a Karta? 

• The Karta is the  manager of the joint family  and its properties, ensuring the smooth functioning of family affairs.

Who can be a Karta?

• The senior most male member of the family has the  right to become the Karta  .
• If the senior most male member is alive, he continues as Karta. If he dies, the next senior most member takes over.
• The Karta is chosen by the  consent or agreement of all coparceners  .

Junior Male Member 

• A junior male member can become the Karta if the  coparceners agree  .
• This agreement allows a junior member to  manage the family affairs  .

In the case of  Narendra kumar J Modi v. CIT 1976 S.C. 1953  , it was established that a junior member could act as Karta with the consent of other family members, highlighting the flexibility in determining the Karta within a Joint Hindu Family.

Female Member as Karta 

• In 2000, the  15th Law Commission's 174th report  recommended amendments to address discrimination against women, leading to the  Hindu Succession (Amendment) Act, 2005  .
• This act made daughters  coparceners in HUF property  , granting them equal rights with sons.
• The landmark case  Mrs. Sujata Sharma v Shri Manu Gupta  established that daughters could also be  Karta of the Hindu Undivided Family  after the father's demise, provided they are the eldest.
• Daughters, whether married or unmarried, can claim coparcenary rights and manage HUF property as Karta if they are the eldest.
• According to  Dharmastra  , if no male members are present or if the male members are minors, a female can act as Karta.

Characteristics of Karta 

• Unique Position:  Karta's position is independent and unmatched among family members.
• Power and Control:  Karta has wide powers to control family affairs and is not treated as a partner or agent.
• Accountability:  Karta is responsible only in cases of fraud or misappropriation.
• Discretionary Control:  Karta can use resources as he likes and is not bound to divide income equally among family members.

Powers of Karta

Rights to Income or Remuneration and Expenditure 

• The income of the Joint Hindu family property must be given to the Karta, who is responsible for  allotting funds  to family members for their needs.
• The Karta controls the  expenditure of funds  on family purposes such as management, maintenance, marriage, and education.

Rights to Represent Joint Family 

• The Karta represents the family in legal, religious, and social matters.
• His acts and decisions are binding on all family members.
• The Karta can enter into any  transaction on behalf of the family  .

Right to Compromise 

• The Karta can compromise disputes related to  management or family property  .
• Compromises made by the Karta can only be challenged in court on grounds of malafide by heirs.

Power to Refer a Dispute to Arbitration 

• The Karta can refer disputes regarding management or family property to arbitration.
• The arbitration award, if valid, is binding on all family members.

Power to Contract Debts 

• The Karta has the implied authority to contract debts and pledge the family’s credits and property.
• These acts are binding on all family members.
• Even in a non-business joint family, the Karta can contract debts for family purposes.

Power to enter into contracts 

• The Karta has the power to enter into contracts that are binding on the family.
• Contracts are enforceable against the family.

Power of Alienation 
While no family member can alienate joint family property, the Karta has the power to do so under three circumstances:

• Legal Necessity:  This term is not explicitly defined but includes all deemed necessary for the family members.
• Benefit of Estate:  Anything done for the benefit of the joint family property.
• Indispensable Duties:  Religious, pious, or charitable acts such as marriage or grihapravesham.

Legal Necessity 

• Legal necessity encompasses actions deemed necessary for the family members.
• In the case of  Dev Kishan vs. Ram Kishan AIR 2002  , the court ruled against the defendant for selling and mortgaging property for illegal purposes, emphasizing the importance of legal necessity in property transactions.

Benefit of Estate 

• Benefit of Estate refers to actions taken for the advantage of joint family property.
• The Karta, as a manager, can undertake activities that support family progress and well-being.

Indispensable Duties 

• Indispensable duties involve performing acts that are religious, pious, or charitable in nature.
• Examples of such duties include  marriage and grihapravesham  , where the Karta can alienate a portion of family property for charitable purposes.

Liabilities of a Karta 

• Liability to Maintain:  The Karta is responsible for maintaining all members of the Joint Family. If any member is not maintained, the Karta can be sued for maintenance and compensation.
• Liability to Render Accounts:  As long as the family remains joint, the Karta is not required to keep accounts. However, upon partition, the Karta must account for family property. If any heir is unsatisfied with the accounts, they can sue the Karta for misappropriation.
• Liability to Recover Debts Due to the Family:  The Karta has the obligation to recover debts owed to the family.
• Liability to Spend Reasonably:  The Karta is responsible for spending joint family funds only for family purposes.
• Liability Not to Eliminate Coparcenary Property:  The Karta cannot alienate coparcenary property without legal necessity or benefit to the estate.
• Liability Not to Start New Business:  The Karta cannot initiate a new business without the consent of other coparceners.