Karta Of Hindu Undivided Family Can Alienate HUF Property Even If Minor Has Undivided Interest In It : Supreme Court

The Supreme Court has observed that a Karta of a Hindu Undivided Family(HUF) has the right to sell/dispose of/alienate an Hindu Undivided Family (HUF) property, even if a minor of the family has 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, explained the Court. Reference was made to the judgment in Sri Narayan Bal v. Sridhar Sutar (1996) 8 SCC 54.

A bench comprising Justices Sanjiv Khanna and SVN Bhatti was hearing a petition challenging the proceedings in a Debts Recovery Tribunal. The petitioner claimed that the property in question was a joint family property/Hindu Undivided Family (HUF) property, which was mortgaged by the petitioner’s father as one of the guarantors.

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

"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.

Case Title : NS Balaji v. The Presiding Officer, Debts Recovery Tribunal and others | SLP(C) 21476- 21477/2023

Citation : 2023 LiveLaw (SC) 853

Click here to read the order