KARTA (MANAGER)

 [..4 B..]

JOINT FAMILY

  1. B) KARTA (MANAGER)[1]

QUESTION BANK

Q.1. Write a full note on position, powers, privileges and obligations of the Karta of a joint family.

Q.2. Who may act as ‘Karta’? What are the powers of Manager (Karta) of Joint Hindu family?

Q.3. Explain the position of ‘Karta’. Discuss Karta’s power of alienation.

SYNOPSIS

  I]      KARTA (MANAGER) MEANS

 II]      POSITION OF THE KARTA

III]      POWER’S OF THE KARTA

          1)       Power over income and expenditure.

          2)       Power to alienate coparcenary property.

  1.           i)        Alienationfor the purpose of necessity
  2. ii) Benefit to the property.                .

           iii)     Power to make gifts.

         3)        Power to contract debt.

          4)       Power to acknowledge debt.

          5)       Power to start new business.

          6)       Power to give a valid discharge.

          7)       Power to refer dispute to arbitration.

8)       Power to represent family in suits and other proceedings

9)       Power to compromise.

IV]     LIABILITIES OF THE KARTA.

           1)      To maintain members.

           2)      Perform marriages.

           3)     Prepare accounts.

4)          Represent family.

5)          Pay taxes.

 

I]       KARTA (MANAGER) MEANING:-

          The joint family is a patriarchal organisation[2]. The senior most male ascendant[3] is the head of the family and is called the Karta or Manager. His position in the joint family is critical. The Karta or manager manages the joint family property, represents the family and acts on its behalf. The Father or other senior male family member is entitled to be a manager. However, where such a member (father or another senior male member) surrenders his right of management, a junior male member of the family may be appointed as the Manager or Karta with the consent of all other members. Women cannot be coparcener or the manager of the family[4]. A minor may be the manager, but he has to act through his legal guardian till he becomes a major[5].

II]      POSITION OF THE KARTA:-

          Karta of a joint Hindu family property is not an agent of other family members to bind them as a principal. Their relations cannot be treated as agents and principals of a partnership firm but like trustees and beneficiaries. However, it may be noted that strictly speaking, a relationship between them (i.e., manager and coarcener) cannot be treated as that between a trustee and beneficiary. Though some of his duties are similar to those of trustees, he is not considered a trustee of others.

III]    POWERS OF THE KARTA[6]:-

          The powers and privileges[7] of the Karta can be discussed as follows.

1)       Power over income and Expenditure:-

           Karta has complete control over the joint family’s income and expenditures. In this way, he is not a trustee for the other family members. However, some of his functions resemble those of a trustee.

          However, he can only spend the income on maintenance, residence, education, marriage, shraddha and other religious ceremonies of the coparceners and their family. He cannot misappropriate the family funds or misapply them to purposes other than those of the family[8].

2)       Power to alienate coparcenary Property[9]:-

          Karta has the power to alienate the coparcenary property in the following circumstances.

  1. i) Alienation for the purpose of Necessity[10]:-

          The power of the Karta of the joint family is justified for the family’s necessities. Such necessities may be like payment of Government revenue, maintenance of coparceners, marriage expenses of coparceners their children, payment of debts binding on the family etc[11].

In Mallaya Mekkalwar V/s Rajboina [2008 (2) All MR 21]

         Held:- Sale of a property for the necessity of family does not bind Coparcener’s interest in the Joint Hindu Property.

  1. ii) Benefit to the Property[12]:-

                    ‘Benefit to the estate’ is another justification for the alienation of the joint family property. The preservation of the estate from extinction, hostile litigation affecting the property, and protection of it or a portion thereof from injury or deterioration by inundation are instances of beneficial acts to the property8.

iii)      Power to make Gifts[13]:-

          The manager, within reasonable limits, may make a gift of coparcenary property for pious purposes. Thus, the gift of a small item of immovable property may be made to a temple; a father may give a reasonable extent of family property to his daughter.

3)       Power to contract Debt[14]:-

          The manager must not alienate a property to meet the family’s needs. He may raise a loan. The power to incur debt is conditioned by a legal necessity or benefit to the estate.

4)       Power to acknowledge Debt[15]:-

          Karta has the power to acknowledge the debt (which the family owes to others) on behalf of the family. However, he cannot relinquish a debt due to the family.

5)       Power to start a new Business[16]:-

          A joint Hindu family carrying on trade in a particular commodity may legitimately extend it to another commodity. He can even start a new business for the family’s benefit. Starting a new business with the aid of a joint family fund is considered a joint family business.

6)       Power to give a valid Discharge:-

          Karta has the full power to give a valid discharge for all debts due to the family, even though there is no unanimity among family members.

7)       Power to refer a dispute to Arbitration[17]:-

The Karta has the power to refer disputes regarding joint family property to arbitration, provided he does so in bona fide and for the benefit of the family.

8)       Power to represent the family in suits and other Proceedings[18]:-

          Karta has the power to represent his family as a whole or any family member in a suit or other proceedings. In other words, he can sue and be sued in the family’s representative capacity.

9)       Power to Compromise[19]:-

          The manager can compromise any suit or proceeding for or against the joint family, provided that such compromise is bonafide and for the family’s benefit.

IV]     LIABILITIES[20] OF THE KARTA.

          Karta’s liabilities or obligations can be described as follows:-

1)       To maintain Members[21]:-

          It is the foremost responsibility[22] of the manager to maintain all members of the family. He is liable for maintaining family members.

2)       Perform Marriages[23]:-

          He is responsible for the performance of all of the marriages of the unmarried members of the family, especially the marriages of daughters.

3)       Prepare Accounts[24]:-

          If the partition suit is filed, he must prepare accounts of the family’s assets and debts. He is not supposed to keep accounts as long as the family remains joint.

4)       Represent Family[25]:-

          The Karta represents the family. He is its sole representative in dealings with outsiders. In this capacity, he has to discharge many responsibilities and liabilities on behalf of the family.

5)       Pay Taxes[26]:-

He has to pay taxes and other dues on behalf of the family.

*****

[1] व्यवस्थापक [मैनेजर]

[2] पितृसत्ताक संघटना/संस्था  [पितृसत्तात्मक संगठन]

[3] पूर्वज

[4] Supreme Court held it in Commissioner of Income-Tax v. Govindram Sugar Mills. AIR 1966 SC 24.

[5] Radhe Ammal v. Income- Tax Commissioner. AIR 1950 Mad. 538.

[6] व्यवस्थापकाचे अधिकार

[7] विशेशाधिकार

[8]  Expenses made for following purposes are called expenses made for legal necessities.

 (i) Payment of Government revenue and the debts, which are payable out of the family property.

(ii) Payment of debts due to the landlord or payment under a decree for arrears of rent passed in favour of the landlord.

(iii) Cost incurred on necessary litigation in recovering or preserving the estate of the family.

(iv) Costs incurred for defending the head of the joint family or any other member of the family against a serious criminal charge.

(v) Marriage expenses of coparceners and their daughters.

(vi) Maintenance of coparceners and their daughters.

(vii) Performance of the necessary funeral and other ceremonies.

(viii) Costs of building a residential house for the family.

(ix) Sale of family property for conveniently adjusting the shares of the members of the family.

(x) Expenditure incurred for augmenting the means of livelihood of the family, unless it is risky or speculative.

(xi) Similar purposes provided that these purposes couldn’t be met out of the income of the family or the cash on hand.

(xii) Payments of debts incurred for family business or other

[9] मालमत्तेचे हस्तांतरण  [सहदायिकी संपत्ति के अन्य संक्रामण की शक्ति]

[10] गरजेसाठी हस्तांतरण [आवश्यकता के प्रयोजन के लिए स्थानांतरण]

[11] Hanooman Persaud’s Case 6 MIA 393.

[12] मालमत्तेच्या फायदयासाठी हस्तांतरण [संपत्ति को लाभ]

8 The expenses for the following purposes can be called as for the ‘benefit of the estate’:

(i) An advantageous acquisition of property made for the benefit of the family.

(ii) A sale of small shares in inferior lands in different villages with the intention of acquiring a compact share in fertile land in one village.

(iii). Sale of the family property which is unproductive and inconveniently situated with the purpose of investing the proceeds of such property for inventing a better piece of property.

(iv) A sale of a building in a dilapidated condition and in respect of which a notice for demolition of the same has been received from the concerned authority.

(v) A mortgage made for making additions to or improvement upon the family house.

(vi) A gift to a stranger of a small portion of land with the purpose of defeating a claim of pre-emption.

[13]  भेट म्हणून हस्तांतरण [उपहार देणे की शक्ति]

[14]  कर्ज घेणे [ऋण लेणे की शक्ति]

[15] कर्जाची परतफेड [ऋण अदा करने की शक्ति]

[16]  नविन व्यवसाय चालू करणे [एक नया व्यवसाय शुरू करने की शक्ति]

[17] तडजोडीसाठी वाद सोपवणे [किसी विवाद को मध्यस्थता के लिए भेजने की शक्ति]

[18] प्रतिनिधीत्व करणे [वादों और अन्य कार्यवाहियों में परिवार का प्रतिनिधित्व करने की शक्ति]

[19] तडजोड करणे [समझौता करने की शक्ति]

[20] जबाबदा-या [देयताएं]

[21] सदस्यांचे संगोपन करणे [सदस्यों को बनाए रखने के लिए]

[22] महत्वाची जबाबदारी [ज़िम्मेदारी]

[23] विवाह पार पाडणे

[24] हिषोब ठेवणे

[25] कुटुंबाचे प्रतिनिधीत्व करणे   s

[26]  टॅक्स भरणे

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