Karta – Powers and Duties

By Mayank Shekhar | June 2, 2017

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Introduction to Karta

The joint Hindu family is a patriarchal organization and the head of the family is known as Karta. He is the
senior most male member of the family and as a head or manager of the family, he is the representative of the
family and acts for or on behalf of the family. A Karta is a person in whom, others in the family repose
confidence, so between the Karta and the family members there is a fiduciary relation because there is always
a need for a manager to look after the welfare of minor members and females in a joint Hindu family. Such
manager of the joint Hindu Family is known as the Karta of family and he enjoys immense powers in respect of
the management of the affairs of family and its property.

The position of Karta in a joint Hindu family is unique. He is that person who takes care of the whole family and
its property and administers it and all the members of the family remain in discipline under his control and are
bound by his decisions. A Karta incurs unlimited liability and is representative of the family in all the affairs. It
has been said regarding the position of Karta that no one else is equivalent to him in the family. The position
and powers are wider than anyone.

POWER
1. Power over income and expenditure
2. Power to manage joint family business
3. Power to contract debt for family purposes
4. Power to enter into contracts
5. Power to refer to arbitration any matter involving the interest of joint Hindu family and the other
members of the family including minors
6. Power to enter into compromise in any matter relating to joint Hindu family property
7. Power to give discharge to the debt due to joint family
8. Power to acknowledge debts or make a part payment of it, so as to extend the period of limitation.
9. Power to represent in suits
10. Power of alienation of joint Hindu family property
But this does not mean that he is a dictator. His position is extremely sensitive. He has to move along with all
the members. Thus the position of the Karta is a mixture of rights and duties. He has to maintain the balance
between rights and duties.

DUTIES AND LIABILITIES

1. He has the duty to render accounts to the other coparceners regarding the income from joint family
property and expenditure thereon
2. He has the duty to realize the debt due to the family
3. He has the duty to spend the joint family funds only for the purposes of the family and should spend
reasonably
4. It is the duty of the Karta not to start a new business without the consent of other coparceners.
5. It is the duty of Karta not to alienate the coparcenary property without legal necessity or benefit to
the estate.
WHO CAN BE A KARTA
1. WHETHER A JUNIOR MOST COPARCENARY Hindu Law believes that the senior most coparcener is
the Karta of the family. Refer case of Ram v. Khera -1971.
2. Any coparcener becomes Karta of the family because of his seniority not because of anyone
appointed him. Refer a case to this effect Mann v. Jayani-1918 it was held that such a person till he
lives continues as the Karta of the family although he may be aged, handicapped, weak or ill.
3. However, any Karta becomes unsound mind then the senior most coparcener would become the
Karta.
BECOMES KARTA.
Generally, it does not happen but in a case of Narendra Kumar v. Income Tax Commissioner-1976, it was
held that a junior coparcener can be the Karta with the consent or agreement of all the coparceners.
In another case of Harihar Sethi v. Ladu Kishore Sethi -2002, it was held by the Orissa High Court that junior
coparcener can be the Karta when the senior most coparcener waives his right of Karta then a junior member
can become Karta.
Whether mother can become the Karta. 
In the case of Pandurang v. Pandurang -1947 it was held by the Nagpur High Court that the mother can
become Karta if there is no other adult coparcener here the Supreme Court does not agree to this view in the
case of Commissioner of Income-tax v. Seth Govind Ram -1986.
The Karta of Joint Hindu Family at a time can only one not more, but with the consent of other coparceners
there can be more than one Karta: refer a case of Mudrit v. Ranglal 1902 and Shankar v. Shankar 1943.

The term ‘Hindu Undivided Family’ (“HUF”) or ‘Joint Hindu Family’ is not mentioned or defined in the acts:
Hindu Minority and Guardianship Act (1956), Hindu Marriage Act (1955), Hindu Succession Act (HSA)
(1956) and Hindu Adoptions and Maintenance Act (1956), however, the Income Tax Act, 1961 makes a
HUF a taxable entity under Section 2(31).

Under Section 2(4) of the Kerala Joint Hindu Family System (Abolition) Act, 1975, the expression ‘Joint
Hindu Family’ is defined as an undivided Hindu family governed by the Mitakshara Law.

In Surjit Lal Chhabda v. Commissioner of Income Tax[1] the Supreme Court said that, (i) the expressions
‘Hindu Undivided Family’ (HUF) and ‘Joint Hindu Family’ (JHF) are synonymous terms; (ii) the terms being
not independently defined in any act, is evidence enough of the underlying connotation that the terms
must be understood as they are understood in Hindu Law; (iii) a joint Hindu family consists of persons
lineally descended from a common ancestor and includes their wives and unmarried daughters. The
daughter, on marriage, ceases to be a member of her father's family and becomes a member of her
husband's family. The joint Hindu family is thus a larger body consisting of a group of persons who are
united by the tie of Sapindaship arising by birth, marriage or adoption; and (iv) HUF is a creature of law.

Thus, as per the above judgment, HUF is the undivided and unpartitioned group of direct descendants of
a common ancestor including their wives (if any) and unmarried daughters (if any) and excluding married
daughters.

Who is a Karta

Karta is that adult male coparcener of a HUF who has the responsibility and authority to manage the
affairs and assets of the HUF. Traditionally, Karta has been the eldest surviving male member of the HUF.
However, in case the only surviving members of a HUF are a woman and her minor son and daughter or
daughters (if any), the son would have been the Karta acting through his natural guardian i.e. minor’s
mother. Thus, the woman would be the de facto Karta of the HUF.

According to Article 236 of the Mulla Hindu Law, “Karta” can be defined as: “Manager - Property belonging
to a joint family is ordinarily managed by the father or other senior member for the time being of the family:
The Manager of a joint family is called Karta.”[2]

A Karta holds very distinctive position in the HUF. This unique nature of the karta is in reference to the
diverse powers he holds whilst performing his tasks as the decision maker in a range of respects of the
family. Karta is not accountable to any member of the family until it is a matter of misappropriation or
fraud, in event of either, he is to give an answer.[3]