What Is Hindu Joint Family and Karta

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What is Hindu Joint Family & Karta

INTRODUCTION

The joint family concept under Hindu law is the starting point of understanding of a fully
developed vast and separate branch of law altogether. Hindu joint family is an ancient and
unique institution which has no parallel in an ancient or modern system of law. Its origin can be
traced to the ancient patriarchal system which can be said to be the earliest system of human
society. Under Hindu law therefore the joint family system came first in historical order and the
individual recognition of a person distinct from the family came later. This Historical institution
has even been recognised by Modern legislation, like the Income Tax Act treats "Hindu
Undivided Family" (HUF) as a separate unit for the purpose of levying tax. A Hindu Joint
Family, at best, may be defined by stating the jointness of members of whom it is made up. A
Hindu Joint Family consists of the common male ancestor, his wife and all his lineal male
descendants together with their wives, widows and unmarried daughters and also daughters of
male descendants." The Fundamental principle of Hindu Joint Family is the Sapinda Ship. It is
not an artificial but a natural association based on the Sapinda relationship. Those who were not
Sapindas cannot form a joint Hindu family.

The joint family system under the Hindu law is a patriarchal organization. The affairs of the joint
family consisting of pardanashin ladies and infants could not be managed by all the members.
There is always a need of a manager to look after the welfare of minor members and females in a
Hindu joint family. The family cannot be managed by all the adult male members because of
inequalities in their ranks; but ordinarily they are, by the consent of all, managed male member
who is the head of the family by reasons of his Seniority and superior rank. He is called the
manager or 'Karta' of the family. He is liable to make good to other family members with their
shares of all sums which he has misappropriated or which he spent for purposes other than those
in which the joint family was interested. His role is crucial. He is entrusted not only with the
management of land/assets of the family but also is entrusted to do the general welfare of the
family.1

1
Union of India v Sree Ram Bohra And Others, AIR 1965 SC 1531.
RULES OF PRESUMPTIONS

A joint family is the normal unit of the Hindu Society. This system is so prevalent that law
presumes that every Hindu family is a joint one, unless contrary is proved. The family does not
become divided unless there is a division in proper (i.e. Partition) even if the kitchen or worship
are separated. Although, there is no presumption that a family, because it is joint, possesses joint
property. A Hindu, even if he be joint may possess separate property. The existence of joint
family does not raise presumption that it owned properties jointly. Also it does not carry a
presumption that property purchased by any member of the family is joint property of the family.
The initial burden always lies upon the party asserting that any item of property is joint family
property, Tilak Raj v. Vidhya Devi.2 But once joint family nucleus is either proved or admitted
so as to draw inference that such property could have acquired out of joint family funds, the
burden shifts to the party alleging self-acquisition to establish affirmatively that such property
was acquired without aid of joint family.

CREATION AND CONTINUANCE OF HINDU JOINT FAMILY

It must be noted that the existence of a common male ancestor is essential for bringing a Hindu
Joint Family into existence but for its continuance common male ancestor is not a necessity. The
death of the common male ancestor does not mean that the Hindu Joint Family will come to an
end. By nature, if the upper links are taken away by death, the lower links continue to be added
and in this manner, so long as the line does not become extinct, the joint family continues and
continues indefinite almost till perpetuity.

There must be at least two members to constitute a joint family and they must be Hindus. A
single male or female cannot make a joint family. Plurality of members is necessary for
continuation of a joint family but plurality of male member is not necessary for its continuation.
It does not take more than one male to form a Hindu Joint Family is well established. A Hindu
Joint Family may consist of a single male member and his wife and daughters, or a single male
member and a widow of a coparcener. In CIT v. Laxminarayan,3 the Court held that the Hindu
Joint Family shall continued where there was only one male and the rest being females, namely
the wife and the mother, and the death of the father did not bring about an end to the Hindu Joint
2
AIR 2006 J&K 29.
3
AIR 1935 Bom. 412.
Family. A family consisting of the son and his wife, after the death of the father is a Hindu Joint
Family (Krishna Prasad v. CIT4). Thus, there can be a joint family with a single male member
and his wife. The existence of a coparcenary is not essential for the existence of a Hindu joint
family.

Can Two Widows comprise Hindu Joint Family?

The rule is that even on the death of sole surviving coparcener, the Hindu Joint Family does not
come to an end so long as it is possible in nature or law (i.e. adoption) to add a male member to
it. Even the death of all male members does not bring the Hindu Joint Family to an end (S v.
Ram Chander)5. Thus, there can be a Hindu Joint Family where there are only widows.
Accordingly, where the joint family comprises two brothers with their wives, on the death of
both the brothers, their two widows have the capability to add a male member to the family if
one of them was pregnant or they decide to adopt a male child; in this manner the joint family
continues. The test laid down is the potentiality of the widows to bring a male member into
existence either by nature or by law (A.K. Ratanchand v. CIT).6

Can two daughters comprise a Hindu joint family?

Position before 1956: Two widows are said to constitute a Hindu joint family because of their
legal capacity to add a male member to the family in the future. Since daughters did not have
such capacity, two daughters cannot be said to constitute a Hindu joint family.

Position after the enactment of the Hindu Adoptions and Maintenance Act, 1956: Section 8,
HAMA, for the first time enables a female Hindu to adopt a son or daughter. The Act has
brought about a basic change in the earlier law in this matter. A Hindu female has now got a
personal right to adopt. Thus, this Act conferred legal capacity to add a male member to the
family on the unmarried daughter. Thus, this Act makes possible for two unmarried daughters to
constitute a Hindu joint family.

Position after the Hindu Succession (Amendment) Act, 2005: With the substitution of Section
6, HSA which stipulates that a daughter of a coparcener would become a coparcener in her own

4
AIR 1975 SC 498.
5
AIR 1970 SC 343.
6
(1990) 186 ITR 975.
right, now there is no legal impediment on the daughters not only on the continuation of a Hindu
joint family, but also on the creation of a new one.

POSITION OF KARTA:

The legal status of Karta is sui generis. He discharges the functions of a manager of the joint
property, of a trustee and of an agent, but he is none of them. In the Hindu Joint Family, Karta
occupies a superior position. The position of Karta comes to him by being born in the family and
he is not appointed by anyone, nor does the consent of other coparceners is required. He is
entitled to be the Karta because he is the senior most. So long as he is alive, he will continue to
be the Karta. The Karta manages the joint family property but he has also to look after all the
other affairs of the joint Family. Hence, he is more than a manager of the property of the joint
family. The office of Karta is that of a trust or confidence and he is, at best, comparable to that of
a trustee. His position is far from that of a trustee in the strict sense of the term. The sum total of
rights and duties of the Karta makes him a category by himself and it is a unique creation of
Hindu jurisprudence.

Who Can Be the Karta?

Generally, the rule is that the senior most coparcener of the joint family is presumed to be the
Karta of the family. If the coparcenary consists of a father and his sons, the father is in all cases
naturally the Karta. If he is very old or is dead then the senior most male member of the family
becomes Karta. In Chandradip v. Jagannath7, the Calcutta High Court held that on the death of
the Karta, the next male in seniority will become the Karta and if there are some legal
proceedings pending in the Court involving the joint family his name will be substituted, in place
of the deceased Karta. The rule of making the senior most coparcener the Karta of the family is
not an indefeasible one.

If the senior most member does not want to continue as the Karta he may expressly relinquish his
position as Karta and with the consent of the family members another coparcener, not necessarily
the next as the Karta, he can expressly relinquish his position as a Karta and with the consent of

7
AIR 1978 Cal 157
the family members another coparcener, not necessarily the next in seniority may be appointed
as the Karta8.

The question arose in Union of India v. Shree Ram Bohra9 before the Supreme Court was can
there be more than one karta in a joint family. The reasoning of the Court weighs in favour of the
unity of the Karta. The Court observed: "The existence of two Kartas cannot lead to the smooth
management of the property of the joint Hindu family and the other affairs of the family in view
of the powers which the Karta of a Hindu joint family possesses under the Hindu law. Therefore,
there is no scope for two `Kartas' or two' representatives.

Female as Karta:

After coming into force of Amendment to Hindu Succession Act, 1956 in 2005, a daughter is
also a coparcener in the same manner as a son. She has got the same right in the coparcenary
property as she would have had if she had been a son. Therefore, in the absence of father, she can
be a Karta, if she is the senior most member in the family and she will be entitled to represent the
family in all legal proceedings. What happens to this right when she is married? The answer will
depend upon the facts and circumstances of each case. It is submitted that even after the marriage
of the daughter, like a son, she would continue to be Karta and would be empowered to exercise
all the powers.

POWERS OF THE KARTA:

The true legal status of Karta can be understood only by assessing the ambit of his powers and
liabilities. The following are the general powers of Karta of a Hindu joint family:

1) Power of management: His power of management is absolute. No member of the family,


and for that matter, not even the Court, can force the Karta to take a particular decision as
that would mean an interference in his inherent powers of Management. The coparcener's
right to ask for partition is a great check on his absolute power of management.
2) Power over the income and expenditure of the family: The decision of how to spend the
joint family income, and on whom to spend it, is with the Karta. As long as he spends the
income of the family for the purpose of the family he is not under any obligation to
8
Nemi chand v. Hira Chand (2000) I H & R 250 (Raj)
9
Supra note 1
economize or to make savings. However, a Karta cannot misappropriate the income to
purposes other than those of the family.

3) Power of alienation: This special power of the Karta is limited. In Ramesh v. Damodhar10
the court held that Karta can alienate joint family property only if it is made for legal
necessity or for benefit of estate or meeting the antecedent debts, and prior consent of other
coparceners is not necessary for either of these purposes.

4) Power to represent the family in all legal, social, religious and revenue matters: In a suit
by or against the Hindu Joint family, the Karta fully represents the whole family. This would
mean that the manager of a joint family may sue or be sued respect of any transaction entered
into by him as the manager of the family, and if a decree is passed against him in such a suit,
it would be binding on all the members of the family.

5) Power to contract debts: The manager of a joint Hindu family has an implied authority to
contract debts and pledge the property of the family for ordinary purpose of family business.
Such debts would be binding on all the members of the family. However, it is necessary for
him to prove that he loan was taken for family purposes, or business if the creditor seeks to
make entire family liable for debts.

DUTIES AND LIABILITIES OF KARTA:

Liabilities of Karta are numerous and multifarious. The following may be mentioned as the
duties and liabilities of Karta of a Hindu joint family:

1) Duty to render Accounts: It is duty of the Karta to maintain accounts of Joint Hindu
Family. The accounts must states clearly about the source of income and money spend while
managing the family business. Karta has no obligation to account his past dealing of family
property or fund unless clear evidence of fraud and misrepresentation arise. Karta is liable to
account only at the time of partition of Joint Hindu Family only and then only for the family
property as it exists at the time of partition. But other party or member of the family have

10
1991 1 Bom. LR 392
right to question the Karta regarding the property and they are not bound to accept the
account as presented by the Karta.
2) Duty to realize account due to debt: It is duty of the Karta to recover/realize the debt due to
the family. Karta has no power in giving fresh loan but he can make changes to interest rates
or principle or settle accounts with debtor in the interest of the family.
3) Duty to spend reasonably: It is duty of the Karta to fully utilize the family funds and spend
only reasonable money. In the case of Chandra Kishor and Nanak chand 11 court said if
Karta spends unreasonable money and it is not approved by other member of the family, they
can demand partition.
4) Duty to take consent of other coparceners before starting a new business: Karta cannot
start a new business on his own with joint family funds he have to take consent of other
coparceners as he cannot put the risk of new business on other coparceners.
5) Duty to give maintenance or maintain every member of the family: It is prime duty ok
the Karta to look after every member of the family via income received from joint family
business/property and if he fails to maintain member of the family they can sue Karta for
maintenance.

LEADING CASE LAW

Nopany Investments Ltd. v. Santokh Singh (HUF)12

Facts: On July 16,1980, the appellant entered into a lime with Santokh Singh HUF for a period
of 4 years with respect to the property situated; New Delhi. Accordingly, on expiry of the period
of 4 years, a total eviction was issued by Jasraj Singh, claiming himself to be the Karta Santokh
Singh HUF. The Appellant did not concede and refused to vain the premises. Finally, Jasraj
Singh instituted a suit seeking eviction of the appellant from the suit premises. The trial court
decreed in the respond; the favour. From the first appellate court to High Court the appeal was
appellant was dismissed. Hence this appeal before the Supreme Court preferred.

Legal Issue: Can a junior member/coparcener act as Karta if the senior member/coparcener has
relinquished his right expressly or impliedly or in the absence of the Karta under exceptional
circumstances?
11
AIR 1975 Del 175.
12
AIR 2007 (13) JT 448
Observations: The Appellant had questioned the maintainability of the suit filed at the instance
of Jasraj Singh claiming himself to be the Karta of Santokh Singh HUF. The Appellant strongly
argued that it is the settled principle of law that the junior member in the joint family cannot deal
with the joint family property as Karta so long the elder brother is available and in this case, the
respondent Jasraj Singh, who is admittedly a junior member of the family, could-not have
instituted the eviction suit, claiming himself to be the Karta of the family when an elder member
of the HUF is admittedly alive.

The Supreme Court observed as follows:

1) "In a Hindu Joint Family, the Karta or manager occupies a unique position. It is not as if
anybody could become Karta of a Hindu Joint Family. As a general rule, the father of a
family, if alive and in his absence the senior member of the family, is alone entitled to
manage the joint family property. "
2) It is not possible to hold that when the elder member of a Hindu joint family is alive, the
younger member would not at all be entitled to act as a manager or Karta to manage the joint
family property.
3) A younger member of the Hindu joint family can deal with the joint family property as
manager or act as the Karta of the same in the following circumstances:
a) if the senior member or the Karta is not available;
b) when the Karta relinquishes his right expressly or by necessary implication;
c) in the absence of the manager exceptional and extra ordinary circumstances such as
distress or calamity affecting the whole family and for supporting, the family;
d) in the absence of the father:
 whose whereabouts were not known, or
 who was away in a remote place due to compelling circumstances and his return
within a reasonable time was unlikely or not anticipated.
4) A suit filed by a co-owner is maintainable in law. It is not necessary for the co-owner to
show before initiating the eviction proceeding that he had taken consent of the co-owners.
However, in the event a co-owner objects thereto, the same may be a relevant fact.

CONCLUSION
Hindu law not just only gives power to Karta but also impose certain duty and responsibility on
the Karta so he cannot misuse his power to deceive other member of the family. Various check
and balances on makes it practical concept. This ensures that the Karta works for the welfare of
the Joint Hindu Family. Concept of Karta based on centralized management where one person
given wide power for the management of people. It represent traditional system which was used
throughout the world but with the time the system lost its importance and there is also need to
change the traditional system of family management as to the growing needs of the family.

The codified Hindu family laws have done a great job by making the position of Karta more
organized, equitable and accountable, thus transforming it from an ancient concept to a fully
functional modern one. This system has also modified itself to allow women to become a Karta
as it has changed the qualifications to become one. This has ensured that females also get an
opportunity to manage their families and prove that they are not lacking in skills and capability
vis-à-vis their male counterparts in a Hindu Undivided Family. This will go a long way in
countering patriarchal system and ensure that a female’s right is not lost in any system of
management and inheritance of family property.13

13
Saurabh Kumar, Features of Karta under current Hindu Law, indianbarassociation (03/06/2020, 5:05 PM),
(https://www.indianbarassociation.org/wp-content/uploads/2013/02/Features-of-a-Karta-under-Current-Hindu-
Laws.pdf).

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