Question

What is the liability of Karta in Joint Hindu Family Business?

Answer 1

Kartas Liabilities :-

Karta has vast powers same time his position is fiduciary and has lot of responsibilities and liabilities.

1) Liable to maintain:- Karta is responsible to maintain all the members of joint family. If he improperly excludes any member from maintenance, he can be sued for maintenance and also arrears of maintenance.

2) Liability to render accounts:- As long as family remains joint, Karta is not supposed to keep accounts, but when partition takes place at that time he is liable to account for family property. If any of the coparcener is not satisfied with his account can institute a suit against Karta to discover the truth and to know any misappropriation is made by Karta.

3) Liability to recover debts due to the family:- Kartas should realize all debts due to the family with in reasonable time but should not allow them to bar by limitation.

4) Liability to spend reasonably:- As Karta of joint family has control over the income and expenditure of the family, he is custodian of surplus income. However he should spend family funds reasonably and for the purpose of the family.

5) Liability not to alienate coparcenary property:- Unless it is for benefit of family, estate or for necessity Karta cannot alienate joint family property without the consent of all the coparceners.

6) Liable not to start new business:- Unless adult coparceners of the family expressly or impliedly consents, Karta cannot start a new business.