Karta of Hindu Undivided Family Can Dispose of HUF Property Despite Minor's Undivided Interest : SC

Karta of Hindu Undivided Family Can Dispose of HUF Property Despite Minor's Undivided Interest : SC

Recently, the Supreme Court of India has that a Karta of a Hindu Undivided Family(HUF) has the right to sell/dispose of Hindu Undivided Family (HUF) property, even if a minor of the family has undivided interest.

The Court explained that an HUF (Hindu Undivided Family) possesses the capacity to manage its property through either its Karta or an adult family member. This interpretation was drawn from the precedent set in the case of Sri Narayan Bal v. Sridhar Sutar (1996) 8 SCC 54.

A bench consisting of Justices Sanjiv Khanna and SVN Bhatti was hearing a petition that challenged the proceedings in a Debts Recovery Tribunal. The petitioner asserted that the property in question was a joint family property or Hindu Undivided Family (HUF) property, and it had been mortgaged by the petitioner's father as one of the guarantors.

"Other member(s) of the HUF need not be consenting parties to it. Post alienation, a coparcener may challenge the act of a Karta, if the alienation is not for legal necessity or for betterment of the estate," the Court said.

The Court observed that the the father of the petitioner, as the Karta of the HUF, was entitled to mortgage the HUF property

Case Title : NS Balaji v. The Presiding Officer, Debts Recovery Tribunal and others

 

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