The manager of a joint Hindu family represents the family in all its affairs and transactions, provided they are family necessities. In this connection discuss the powers of a manager…

Question: The manager of a joint Hindu family represents the family in all its affairs and transactions, provided they are family necessities. In this connection discuss the powers of a manager with respect to: (I) Alienation of coparcenary property (II) To contract debts

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Answer

(I) Alienation of coparcenary property

According to Article 236 of the Mulla Hindu Law,

“Property belonging to a joint family is ordinarily managed by the father or other senior member for the time being of the family: The Manager of a Joint family is called Karta.

The apex court held in the case of Radhakrishna v. Kuluram that Karta can enter into any transaction on behalf of the family and it will be ordinarily binding on the members of the family. The manager of the Joint Hindu Family has got the power to alienate the property depending upon the following circumstances:

a) Legal Necessity: This term has not been defined in any specific judgment. It simply means all those things which are deemed to be necessary for the members of the family. Certain essentials for the valid transaction:

There should be an existence of a situation with respect to family members or their property which requires money. The requirement should not be of any illegal purpose. If the family members do not have money to deal with the alternative resources, under such a situation the course of action taken by the manager of the family will be deemed to be valid. It is important that the consideration must not be insufficient after the sale of the coparcenary property.

b) The Benefit of Estate: This basically covers anything which has to be done for the benefit of the entire Joint family. Like protection of Coparcenary property from any unusual threat or danger and gradually the need arises of alienation and so the manager of the Hindu family does in such a manner which suits any rational person.

c) Indispensable duties: It covers the performance of religious, pious as well as charitable acts. Such as marriage. In this case, there is a requirement to differentiate between alienation made for indispensable duties and gifts for charitable purposes. The distinction lies in the fact that in the former situation while discharging indispensable duties, the manager can alienate the entire property and has got unlimited power under this situation but in the latter situation( gifts for charitable purposes) the manager can alienate only a small portion.

In the case of Kandasami v. Somakanda(1910), it was held that Karta has got the power to alienate the coparcener property even in the absence of legal necessity, the benefit of the estate, and indisputable duties. The only requirement is that consent of all the coparceners must be taken by the manager/Karta and the consenting coparcener must be an adult.

(II) To contract debts

The Manager/Karta of the Hindu Family has got an implied authority and pledges the credit and property of the family. He has the power to contract debts for the family. It is essential that such debt must incur in the ordinary course of business. Such debt would be binding on all the members to the extent of their interest in such property. The decision of the manager is binding on all the members of the family. Whenever the manager takes a loan or executes promissory notes for the purpose of family, he would be liable to make payment.

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