by The Joint Hindu family is a patriarchal body, and the head of the family is called Karta. Karta is the senior most male member of the family who acts as the representative of the family and acts on behalf of the family. There is a fiduciary relationship between the Karta and the other family members because every family needs a head member who can look after the welfare of minor members and females in a Joint Hindu Family.
The Qualities of a Karta are:
- He had unlimited power but even if he acts on behalf of other members, he can’t be treated as a partner or agent.
- Karta’s position is unique (sui generis). His position is independent and no one can be compared with him among the family members.
- He controls all the affairs of the family and has wide powers.
- He is not bound to invest, save or economise. He has the power to use the resources as he likes, unless he is not responsible for the above-mentioned charges.
- He is responsible to no one. The only exception to this rule is, in case of fraud, misappropriation or conversion, he is held responsible.
- He is not bound to divide the income generated from the joint property equally among the family members. He can discriminate one with another and is not bound to be impartial. The only thing is he should pay everyone so that they can avail some basic necessities like food, clothing, education, shelter etc.
Powers:
(1) Power to manage joint family business:
The Karta has the power to manage the joint family business. In this respect he can take all such steps which are just and necessary for the promotion of the business.
(2) Power over income and expenditure:
The Karta exercises extensive control over the income and expenditure of the joint family. Since his position is not like the trustee or agent, he is not bound to economise or save like a trustee or agent provided he spends the income of the family for the benefit of the members of the family, e.g., for maintenance, education, marriage, sraddha and other religious ceremonies of the coparceners and of the members of their respective families.
(3) Power to contract debt for family purposes:
The Karta can enter into contracts incurring debts for family purposes and family business which will bind the other coparceners to the extent only of their interest in the joint family property. Such debt contracts could bind the adult coparceners personally also if they were parties to the contract expressly or impliedly or they subsequently ratify the contract and in case of minors if they ratify on attaining majority.
In case of a loan advanced to the manager, if the lender makes due inquiry into the necessity for the loan and lends the money born fide, the debt is binding on the interests of all the members although the reasonably credited necessity did not in fact exist.
(4) Power to Refer to Arbitration:
The Karta may refer to arbitration any matter involving the interest of joint Hindu family and the other members of the family including minors are bound by the reference and consequently by the award made upon it.
(5) Power to Enter into Contract:
The Karta has the power of making contracts, giving receipts, entering into compromises, discharging contracts ordinarily incidental to the business of the family.
(6) Power to Enter into Compromise:
The Karta can enter into a compromise in any matter relating to joint family property. He, however, has no power to give up a debt due to joint family and give up a valuable item without any return or consideration, though he has a right to settle accounts with the debtors and to make a reasonable reduction either towards interest or towards principal in the interest of the family.
(7) Power to Acknowledge Debts:
The Karta has power to acknowledge a debt or make a part payment of it, so as to extend the period of limitation. But he cannot execute a fresh promissory note or a bond so as to revive a time barred debt.
(8) Power to Give Discharge:
The Karta has power to give a valid discharge to the debt due to joint family. Where one of the members of joint family is a minor, he cannot claim the benefit of Section 7 of the Limitation Act.
(9) Power to Represent in Suits:
The Karta may represent the joint family in the event of a suit by or against the family, so that other members are not the necessary parties to the same. The Karta himself be sued or he can institute a suit with respect to any property or other matters of the joint family. Whenever a decree is passed against him, that would bind all other members of the family, if, as regards minor members, he acted in the litigation in their interest, and in case of major members, he acted with their consent.
The Karta represents the interests of the joint family property also. In Fathiunnisa Begum v. Tamirasa Raja Gopala Charyulu, the Court observed that a Hindu widow inheriting her husband’s share under Hindu Women’s Right to Property Act, 1937, does not by itself disrupt the joint family status.
After such inheritance she continues to be a member of the joint family and the Karta of joint family can represent her in all suits. The enlargement of her limited estate into full estate by virtue of Section 14 of the Hindu Succession Act does not bring about a change in the Karta’s power to represent joint family including her.
(10) Power of Alienation:
The Karta can alienate for value the joint family property so as to bind the interests of the other coparceners provided it is made:
(a) With the consent of all the existing coparceners; they being all adults.
(b) For legal necessity
(c) For the benefit to the estate.
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