Karta: Position, Powers, Privileges and Obligations

1. Karta: His Position, Powers, Privileges and Obligations

• Hindu Joint family consists of ladies, infants, males and affair of such family cannot be managed by all members of it, nor managed by all male members jointly
• All such affairs are managed by a senior most male member of family who is also considered as head of family also known as Karta, never 2 Karta in Hindu Joint Family
• He is certainly the manager of family Property with power an ordinary manager does not possess.
• Karta’s decision Binding on family Kurta is face of Hindu joint family and act on behalf of the Hindu joint family.
• Generally, father is Karta of Hindu joint family, when Father not alive, family consists of brothers. Eldest brother to be Karta of family. Minor cannot be considered as Karta of Hindu joint family.
• In case Karta is unavailable, junior member can act as Karta.
• Due to patriarchal system, female member is not member of Hindu joint family. Before succession act 2005, so they were not able to be Karta. But after the act, female became coparcenary and now may also become Karta of Hindu joint family.
• The Karta occupies the position of an agent or trustee of the joint family. He is a representative owner rather than an absolute one.
• His independent rights are limited on all sides by the correlative rights of the other family members.
• His ownership is burdened with the liability that coexists with it, namely, the obligation to provide for the maintenance of the family.

Power of Karta are: -

• A) Power to Income and Expenditure
  - He has control over the income and expenditure of family.
  - Karta not bound to economics or a save like trustee or agent
  - He can spend income for family purposes like maintenance, education, marriage, Sradha and other religious ceremonies.
• B) Power to manage joint family business.
  - Karta has power to manage the Hindu joint family business, not as an agent or trustee, but he has same duties and function.
• C) Power to contract debt for family purposes.
  - Karta of joint family has implied authority to contract debt for joint family purposes or joint family business. Debt can only be taken if it is in interest of all coparcenary
• D) Power to contract.
  - Karta has power to make contract, giving receipts. Compromising or discharging contract to the business of family.
• E) Power to refer to arbitration.
  - Karta has power to refer to arbitration any matter involving the interest of Hindu joint family Member of joint family are bound by reference an award made upon it.
• F) Power to compromise
  - Kurta has no power to give up debt or give up valuable item without return on consideration. But if it is done to settle an account with debtor or reduce either towards interest and principal in interest of family.
• G) Power to give discharge
  - Karta has power to give valid discharge for debt Due to the joint family.
• H) Power to acknowledge
  - Kurta has power to acknowledge death or make part of payment of it as to extend period of limitation.
  - He cannot execute a fresh promissory note or bond as to receive a time bar debt
• I) Power to represent in suit and other proceeding
  - Karta may represent the family in event of suit by or against from Hindu joint family.
  - Kurta may sue or be sued in respect Transaction made by him as Karta of family.
  - A degree pass against him would be binding on all members of family.
• J) Power of Alienations
  - Karta can alienate for value of Joint family property
  - Bind the interest Other coparcenary
      a) With consent of all coparcenary is in existence of alienation.
      b) For legal necessities like marriage,Sradha,education.
      c) For benefit of state.

Obligation of Karta

Duties and obligation of Karta of Hindu joint family are: -

• A) Duty to render accounts.
  · Karta Duty bound to render account
  · Not liable for his past dealing with family property, unless there is a clear proof of misappropriate use of family funds by him
  · liable to accounts only a time of partition That also only when family property exists.
  · Party is not bound to accept the statement of Karta.
• B) Duty to render debt due to the family
  · Duty of Karta to make all possible efforts to release the debt due to the family.
  · No right to give a valuable claim without any return or consideration, but has right to settle with debtor and make reduction in interest and principal.
• C) Duty to spend reasonably
  · Duty of Karta to spend the joint family fund reasonably for purpose of family, not under obligation as an agent or trustee,
  · He must spend reasonably Economically, if there is a dispute in this partition is a remedy.
• D) Duty not to start new business without consent of coparcenary
  · Karta has no authority to start new business, as it may impose unnecessary risk on minor members of family Neither adult members Except with their consent.
• E) Duty not to alienate coparcenary property.
  · Kurta does not have absolute right over ancestral property, but can alienate ancestral property with consent of all coparcenary for legal necessity or for benefit of state. Should be fair and proper transaction