The Karta can sell, mortgage and alienate the joint assets of his Hindu Undivided Family (HUF) even if a minor member may have an undivided interest in it, the Supreme Court has ruled. The Karta does not require the approval of all the members of the HUF to do so, the apex court has added while delivering its verdict in the N Balaji versus Presiding Officer Debt Recovery Tribunal.
While stating that the position of the Karta on joint assets held by his HUF is well settled, a Bench of Justices Sanjiv Khanna and SVN Bhatti declined to interfere with the Madras High Court’s judgement of July 31, 2023.
“This court in Sri Narayan Bal v Sridhar Sutar (1996) has held that the Karta has the right to sell/dispose of/alienate an HUF property, even if a minor of the family has an undivided interest. The reason is that an HUF is capable of acting through its Karta or an adult member of the family in the management of the HUF property,” the apex court said while dismissing a special leave petition filed by N S Balaji.
“The son(s) or other member(s) of the HUF need not be consenting parties to the mortgage. Post alienation, a coparcener may challenge the act of a Karta if the alienation is not for legal necessity or for the betterment of the estate, which is not the assertion established in the present case,” the top court added in its order dated October 3, 2023.
Who is a Karta?
Under the Indian succession laws, a Hindu Undivided Family (HUF) consists of coparceners and members. The eldest coparcener of the HUF is the Karta of that family, who acts as the head and is responsible for managing its affairs, legal and financial.
What is an HUF?
An HUF is a family of lineal descendants from a common ancestor. It includes their wives and unmarried daughters. A Hindu Undivided Family cannot be created under a contract. It is created automatically in a Hindu family. Apart from Hindus, Jain, Sikh and Buddhist families can also create an HUF.
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An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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