'Karta' of Hindu Undivided Family can sell, alienate, or mortgage joint family property, says SC

The Supreme Court has said the 'Karta' of a Hindu Undivided Family (HUF) can alienate, sell or mortgage its property, even though a minor may have an undivided interest in it, and it is not mandatory for the head to take consent of all members.

A bench of Justices Sanjiv Khanna and S V N Bhatti said an HUF is capable of acting through its 'karta' or an adult member of the family in the management of the HUF property.

The bench said the position on the rights of a Karta vis-à-vis an HUF property is well settled.

"This court in Sri Narayan Bal v Sridhar Sutar (1996) has held that the Karta has the right to sell/dispose of/alienate an HUF property, even if a minor of the family has an undivided interest. The reason is that an HUF is capable of acting through its Karta or an adult member of the family in the management of the HUF property," the bench said.

The court declined to interfere with the Madras High Court's judgement of July 31, 2023, and dismissed a special leave petition filed by N S Balaji.

The petitioner claimed that the property in question was a joint family property/Hindu Undivided Family (HUF) property, which was mortgaged by his father as one of the guarantors. The petitioner also stated that his father was the Karta of the HUF.

The court, however, said, the father of the petitioner as the Karta of the HUF, was entitled to mortgage the HUF property.

"The son(s) or other member(s) of the HUF need not be consenting parties to the mortgage. Post alienation, a coparcener may challenge the act of a Karta if the alienation is not for legal necessity or for the betterment of the estate, which is not the assertion established in the present case," the bench said.