Whether Karta of a HUF has the power to sell immovable property belonging to the family without consent of all the coparceners of the family.

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Whether Karta of a HUF has the power to sell immovable property belonging to the family without consent of all the coparceners of the family.

BEEREDDY DASARATHARAMI REDDY Vs V. MANJUNATH AND ANOTHER (Supreme Court)

 

CIVIL  APPEAL  NO.  7037  OF  2021 (ARISING  OUT  OF  SPECIAL LEAVE  PETITION  (CIVIL)  NO.  13853  OF  2021)

 

The Supreme Court while dealing with the law on the subject held that Right of the Karta to execute agreement to sell or sale deed of a joint Hindu family property is settled and is beyond cavil vide several judgments of this Court including Sri Narayan Bal and Others v. Sridhar Sutar and Others(1996) 8 SCC 54(SC) wherein it has been held that a joint Hindu family is capable of acting through its Karta or adult member of the family in management of the joint Hindu family property.

 

A coparcener who has right to claim a share in the joint Hindu family estate cannot seek injunction against the Karta restraining him from dealing with or entering into a transaction from sale of the joint Hindu family property, albeit post alienation has a right to challenge the alienation if the same is not for legal necessity or for betterment of the estate. Where a Karta has alienated a joint Hindu family property for value either for legal necessity or benefit of the estate it would bind the interest of all undivided members of the family even when they are minors or widows. There are no specific grounds that establish the existence of legal necessity and the existence of legal necessity depends upon facts of each case. The Karta enjoys wide discretion in his decision over existence of legal necessity and as to in what way such necessity can be fulfilled.

 

The legal necessity in this case was fulfilled as by its own affidavit HUF contended that it needed money at the time of sale.

 

Thus, the appeal of the buyer was allowed and the HUF was directed to transfer the property as per the sale agreement.

 

 

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