SUNNY SHAH

Powers of Karta

Who is a Karta

Senior-most male member of the family

After death of father (the karta), the senior-

most male member:-

Uncle, if coparcenary consists of uncles and nephews

Eldest brother, if coparcenary consists of brothers

Junior male member can be karta by

understanding among coparcenors

Powers of Karta

1.Power of Alienation

2.Other Powers

Power of Alienation

Shastric law permitted any member of the family to alienate joint family property in certain exceptional circumstances

However this has undergone considerable change1. Power can only be exercised by karta2. Joint family property can the alienated for only 3 purposes:-

1. Legal necessity2. Benefit of estate3. Acts of indispensable duty

Karta can alienate joint family property with the consent of coparceners even if none of the abovementioned cases are satisfied.

Legal Necessity

Term not definedIncludes all things deemed to be necessary for

family membersProperty can be alienated at times of distress,

such as famine, epidemic, earthquake, flood, etcNecessity not to be understood as absolutely

indispensible, but what would be regarded as proper and reasonable.

If shown that family’s need was for that thing or that article, and if the property was alienated for the satisfaction of the need, it would be enough.

Instances of Legal necessity

1. Payment of government revenue and debts payable out of the family property.

2. Maintenance of the coparceners and members of their families

3. Marriage expenses of male coparceners and of the daughters of the coparceners

4. Performance of necessary funeral or family ceremonies

5. Costs of necessary litigation in recovering or preserving the estate

6. Costs of defending the head of the family or any other member against serious

medical charge

7. Payment of debt incurred for family business or other necessary purpose.

These are not exhaustive

Benefit of estate

Anything that is done which will benefit the joint family property

Preservation of estate from extinction, defense against hostile litigation affecting it, protection of

it from injury or deterioration by inundation, etc would be considered benefit of estate.

There was a conflict of opinion as to the meaning of the words ‘for the benefit of the estate’.

One view was that a transaction cannot be said to be for the benefit of the estate, unless it is of

defensive character calculated to protect the estate from some threatened danger or destruction.

Another view was that for a transaction to be for the benefit of the estate, it is sufficient, if it is

such as a prudent owner, or rather a trustee, would have carried out with the knowledge that

was available to him at the time of the transaction.

In Balmukund v. Kamlawati, the SC observed that for a transaction to be regarded as for the

benefit of the family, it need not be of defensive character.

Indispensible duties

Implies performance of those acts which are religious, pious or charitable

Performance of marriage also considered indispensible duty though covered under legal necesity

Other Powers

1. Power to manage Family Affairs2. Right of Representation3. Power to receive and spend the

family income4. Liability to Account5. Power to acknowledge and contract

debts6. Power to settle Family Disputes

MANAGE FAMILY AFFAIRS

Karta has the absolute power to manage family affairs and family property

Power to take possession of the Joint Family Property and receive joint family

income from whichever source it comes

No individual can retain exclusive possession of specific joint family property or

joint family income without his permission.

If coparcener’s presence in the family home proves to be a nuisance due to his

disorderly behavior or bad habit, karta has power to throw him out of the house.

Right to decide or allot specific portions of the house for family member’s

residence which the latter has to obey.

While taking decisions wrt family members he need not be equitable or impartial.

He can give preference to one family member over another.

RIGHT OF REPRESENTATION

Right to represent the family in all legal, social, religious and

revenue matters.

It is presumed that karta represents the family in all legal

proceedings and there need not be a specific mention about

him acting in the representative capacity, unless it can be

shown that he himself is claiming an interest that adversely

affects the interests of the family.

JHF acts through the karta, as it has no corporate existence,

and a decree passed against the Karta binds all the members.

RECEIVE AND SPEND THE FAMILY INCOME

Right to receive joint family income

The decision of how to spend and whom to

spend vests with the karta

He is not under an obligation to economise

or save as in the case of trustees or agent

LIABILITY TO ACCOUNT

Karta not bound to keep accounts of how he has spent the family funds, as he

is presumed to act in the best interests of the family, but where the coparcener

demands partition, he can require the karta to give him accounts.

Karta can only be asked to render the accounts as they existed in the date of

the demand and cannot be forced to render past accounts, unless there are

charges of fraud, misappropriation or conversion of joint family property into

his personal acquisitions.

Coparcener can refute the stand of the Karta where the accounts are not

acceptable to him, on the grounds that the Karta has not spent the money that he

claims to have spent, or the karta has not been honest in showing the properties

available for partition and has not included all the joint family properties.

ACKNOWLEDGE AND CONTRACT DEBTS

Karta has the authority to acknowledge debts due to the family and

to pay interest on it, though he cannot receive a time barred debt.

The debt might have been contracted by all members of the family

or by the Karta alone, acting on behalf of the family.

Karta also has power to contract debt for using the loan in family

business or for any other lawful purpose and such a debt bind the

share of all coparceners.

A coparcener even after seeking partition cannot escape the

liability of the debt contracted by the karta, from his share of the

property.

SETTLE FAMILY DISPUTES

In case of disputes between members of family or

between family members and outsiders, the karta

can refer the dispute for arbitration.

Karta can also enter into a compromise on behalf of

his family, but not where such a compromise is for

his personal advantage.

Where such arbitration or compromise is for the

advantage of the family, all members are bound by it.

Thank You