Supreme Court of India Upholds Karta’s Right to Sell HUF Property!
The Supreme Court of India has held that the Karta of a Hindu Undivided Family (HUF) can sell HUF property without the consent of the other members of the family. This was held in the case of Sri Narayan Bal v. Sridhar Sutar (1996) 8 SCC 54.
The SC Court held that the Karta has the power to alienate HUF property even if a minor has an undivided interest in it. The Court explained 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 Court further held that the Karta is not bound to obtain the consent of the other members of the family before alienating HUF property. However, the Karta must act in good faith and for the benefit of the family. If the Karta alienates HUF property for an illegal purpose or for his own personal gain, the other members of the family can challenge the alienation in court.
The Supreme Court’s decision in Sri Narayan Bal v. Sridhar Sutar has been followed by subsequent rulings of the Supreme Court and the High Courts. This decision has been welcomed by many legal experts, as it gives the Karta the flexibility to manage the HUF property in the best interests of the family.
Important points to note
- The Karta can sell HUF property without the consent of the other members of the family, but he must act in good faith and for the benefit of the family.
- If the Karta alienates HUF property for an illegal purpose or for his own personal gain, the other members of the family can challenge the alienation in court.
- The Karta is also bound by the fiduciary duty. This means that he must act in the best interests of the family and avoid any conflict of interest.
The Supreme Court’s decision in Sri Narayan Bal v. Sridhar Sutar has clarified the law on the power of the Karta to alienate HUF property. This decision has given the Karta the flexibility to manage the HUF property in the best interests of the family.
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