Who is a Karta?

In Hindu joint families, the role of the Karta holds great significance. The Karta is the manager of the family and its properties, entrusted with the responsibility of overseeing day-to-day affairs, protecting family assets, and ensuring the well-being of all family members. The position of the Karta is not only defined by rights and powers but also by certain obligations and liabilities. 

Understanding the role and responsibilities of a Karta helps shed light on the dynamics of a joint family and its hierarchical structure. 

Meaning of Karta

A Karta is the manager of a joint family and its properties. They are responsible for handling the family’s day-to-day expenses, taking care of the family members, and protecting the joint family properties.

Who can be a Karta?

Typically, the eldest male member of a family is considered the Karta in a Hindu Undivided Family (HUF). This means that the father is usually the Karta of the family. However, the next senior male member becomes the Karta if the father passes away. If a family member wants to give up their position, they can do so voluntarily. In some cases, a minor can also become the Karta under the guardianship of their guardian.

Senior Most Male Member

The senior most male member has the right to become the Karta. Only family members can be Kartas; outsiders or strangers cannot become Kartas. If the senior most male member is alive, he will continue as the Karta. If he passes away, the second senior-most member of the family will take over as the Karta. All the coparceners accept the position of Karta through consent or agreement.

Junior Male Member

If the coparceners agree, a junior male member can also become the Karta of the family. Through an agreement with the coparceners, a junior male member can take on the role of Karta.

Female Member as Karta

According to Dharmasastra, a female can act as the Karta if there is no male member in a family. Even if male members are present but are minors, females can act as the Karta.

Traditionally, a female couldn’t be the Karta of a Joint Hindu family or have a share in the coparcenary property. She could only be the Karta if there was no male member in the family. However, the situation has changed. In the case of Mrs. Sujata Sharma v. Shri Manu Gupta & Ors [CS (OS) 2011/2006], held in 2016, it was established that the eldest female member of a Joint Hindu Family can be the Karta.

In the case of Vineeta Sharma v. Rakesh Sharma & Ors [Civil Appeal No 32601 of 2018], held in 2020, it was determined that daughters have equal rights in the coparcenary property, regardless of whether the father was alive or deceased at the time of the amendment of the Hindu Succession Act in 2005.

So, can a woman be a Karta of a HUF?

According to a ruling by the Delhi High Court, a woman can be the Karta of a family if she is the eldest member and a coparcener. This was made possible through an amendment in the succession law in 2005, which granted women coparcener rights in a HUF. Even after marriage, a daughter remains a coparcener and a member of the HUF.

Characteristics of Karta

The Karta possesses the following characteristics:

Unique Position

The Karta holds a distinctive and independent position within the family, and cannot be compared to other family members.

Unlimited Power

The Karta has extensive authority, but even when acting on behalf of other members, they cannot be considered a partner or agents.

Control and Wide Powers

Karta is in charge of managing all the family affairs and possesses broad powers.

Individual Responsibility

The Karta is accountable to no one, except in cases involving fraud, misappropriation, or conversion, where they can be held responsible.

Discretion in Resource Usage

The Karta is not obligated to invest, save, or economise. They have the authority to utilise resources as they see fit, as long as they are not responsible for the charges mentioned earlier.

Unequal Distribution of Income

Karta is not required to divide the income generated from joint property equally among family members. They can exercise discrimination and are not obligated to be impartial. However, they should ensure that everyone receives sufficient funds for basic necessities such as food, clothing, education, and shelter.

Position of Karta

The Karta holds a sui generis (unique) position in relation to the family members. They serve as the head of the family and act on behalf of other members. While the Karta has a fiduciary relationship with other members, they are not considered a trustee. Unless there are allegations of misappropriation, Karta’s expenditures cannot be questioned.

In cases where a coparcener accuses the Karta of improper alienations, the burden of proof lies on the accuser to demonstrate that such actions were malicious acts committed by the Karta.

Rights of Karta

The Karta not only has responsibilities but also enjoys certain rights:

Right to Income and Expenditure

The Karta has the right to manage the income and expenditure of the joint family property. They can utilise the property for various family needs such as marriages, ceremonies, education, and maintenance of family members. The Karta can spend the income as long as it is for valid reasons. 

If other family members believe that the Karta is spending excessively, their only recourse is to seek a partition. Karta is liable to reimburse other coparceners for any wasteful expenditures, but only for the actual amount spent. The Karta is the manager of income and expenditure, not a trustee or agent.

Right to Alienation

Karta has the right to transfer joint family property for value. However, the value or money obtained from the alienation must be utilised for the benefit or maintenance of the family. Any alienation will also bind the minors in the family. Property acquired for greater profit is considered legally valid.

Right to Start or Manage Business

Karta has the right to initiate new business ventures using the family property for the benefit of the family. They are also responsible for operating and maintaining the family business. Although their role is similar to that of a trustee, they are not legally considered as such.

Right to Seek Arbitration

In case of disputes between family members or between a family member and an outsider, Karta can refer the dispute to arbitration. The decision made by the arbitrator is binding and final. However, Karta must make the reference without any fraudulent or malicious intent.

Right to Enter into Contracts

Karta has the right to enter into contracts related to joint family business activities. These contracts should solely aim at generating business profits. Such contracts are binding on all family members, including minors.

Right to Legal Representation

The Karta of a Joint Hindu family can sue or be sued in matters pertaining to the family business. The decisions made in disputes bind all family members. However, in partition suits, each family member represents themselves individually.

Right to Provide Valid Discharge

The Karta has the right to provide a valid discharge for debts owed by the family. They can make partial payments, pay interest, and acknowledge debts. However, they cannot revive a debt that is already time-barred. Payments can only be made within the specified period of limitation.

Right to Incur Debts

The Karta has the right to incur debts for the purposes of the family business and other family needs. They can pledge the family property as collateral for the family business and other activities. If the Karta borrows money through a promissory note, they are personally liable for the debt, while the other coparceners are liable only up to their share in the property.

Liabilities of Karta

Rights always come with certain responsibilities. The liabilities of a Karta are as follows:

Responsibility for Maintaining Members

The Karta is fully responsible for providing maintenance to all members of the Joint Hindu family. This includes wives, descendants, unmarried daughters, and others. Maintenance entails providing food, shelter, clothing, education, marriage expenses for unmarried sisters and daughters, medical expenses, and more.

Obligation to Recover Debts

The Karta has a duty to recover any debts owed to the Joint Hindu family or the family business. They should make every effort to minimise the debt or interest, but they cannot waive any valid debt.

Duty to Seek Consent for New Family Business

Before initiating a new family business, the Karta must obtain the consent of the family members, either explicitly or implicitly. The Karta cannot impose the burden of a new family business on either minor or adult members of the family without their agreement.

Duty to Provide Compensation

Suppose there is proven fraud or misappropriation by the Karta concerning the Joint Hindu family property. In that case, they are required to compensate the other coparceners for the loss incurred in relation to their share in the property.

Obligation to Provide Accounts

Any coparcener has the right to request accounts related to the Joint Hindu family property and profits from the Karta at any time. Karta is obligated to provide these accounts. They are not required to provide accounts for past transactions, but if there is clear evidence of misappropriation, they must provide accounts related to that. Accounts must be given during a partition, and if a Joint Hindu family business exists, the Karta is responsible for maintaining accounts for it.

Liability to Spend Reasonably

The Karta is liable to spend the Joint Hindu family’s resources reasonably and only for the benefit and maintenance of the family. If any coparcener has concerns about the Karta’s expenditures, they have the right to request a partition.

Duty to Refrain from Alienating Coparcenary Property

The Karta has absolute authority over the family property, and this right is not challengeable in court. Coparceners can only seek partition if there is a disagreement. Members are entitled to their share when a partition takes place, but they cannot initiate the partition themselves.

A Karta can only alienate family property if it is for the benefit of the HUF, due to a legal necessity, or to fulfil an indispensable duty. Without these reasons, any alienation by the Karta would be invalid unless approved by all the coparceners.

Under Hindu law, a Karta can decide to alienate the family estate in situations of legal necessity, for the benefit of the family, or to perform religious duties. In these special circumstances, Karta’s decision cannot be legally disputed.

Before alienating coparcenary property, the Karta must discuss and obtain consent from the other family members. However, no consent is required if the alienation is for legal necessity. The key consideration in determining the necessity of alienation is whether a natural owner would dispose of their property in the given situation.

However, if the Karta were to alienate the property without valid reasons, the decision would be null and void, and the Karta could be taken to court. In such cases, the burden of proof lies with the Karta if the matter is brought to court by a dissatisfied party.

Is it possible for a junior coparcener to be a Karta?

Yes, if all the coparceners and family members agree, a junior coparcener can be appointed as the Karta of a Hindu Undivided Family (HUF).

Can a minor be a Karta?

In the absence of a father, a minor son can act as the Karta of a HUF.

Conclusion

The Karta is the manager of a joint family and its properties. In Hindu law, his position is typically held by the senior-most male member of the family, but it can also be passed on to a junior coparcener with the consent of all family members. In the absence of a father, a minor son can act as the Karta. Additionally, a woman can become the Karta if she is the eldest member and a coparcener, as per the amendment in the succession law.

The Karta has unique characteristics and holds significant rights and responsibilities within the family. They have control over the day-to-day expenses, management of family affairs, and the power to make decisions regarding the family’s property. However, these rights are not absolute, as Karta has certain liabilities, such as the duty to maintain family members, realize debts, and spend reasonably for the benefit of the family.