Legal Learning: Concept of Joint Family

Concept of Joint Family

A joint family or undivided family is an extended family arrangement prevalent throughout the Indian subcontinent, particularly in India, consisting of many generations living in the same household, all bound by the common relationship.
Historically, for generations India had a prevailing tradition of the Joint Hindu Family or undivided family.
The system is an extended family arrangement prevalent throughout the Indian subcontinent, particularly in India, consisting of many generations living in the same home, all bound by the common relationship.
A joint family consists of a husband and wife; their sons; their daughters, and so on up-to generations.
Any number of these people may without impacting the legal existence of the family, be decreased.
The family is headed by a senior person called a 'Karta', usually the oldest male or female, who makes decisions on economic and social matters on behalf of the entire family.

Coparcenary: (సహ-వారసత్వం)

Coparcenary is a term often used in matters related to the Hindu succession law, and coparcener is a term used for a person assumes a legal right in his ancestral property by birth.
To understand this better, we have to first understand the term Hindu Undivided Family (HUF).
According to the law, an HUF is a group of people, who are the lineal descendants of a common ancestor. This group would include the eldest member and three generations of a family, and all these members are recognised as coparceners.
According to the law, all coparceners acquire a right over the coparcenary property by birth, while their share in the property keeps on changing with new additions into the family.
Apart from Hindus, people from other religions such as Jainism, Sikhism and Buddhist are also governed under HUF.
It must be noted here that coparcenary applies on both ancestral as well as self-acquired property.
However, unlike ancestral property where all coparceners have equal rights over the property, a person is free to manage his self-acquired property through a will.
Before an amendment was made in the Hindu Succession Act, 1956, in 2005, women did not enjoy a right on their ancestral property post their marriage as they were not considered coparceners.
However, after the amendment — the Hindu Succession (Amendment) Act, 2005,women have been accepted as coparceners.

Coparcenary property:

A text of Yajnavalkya says: “In land, corrody or wealth received from the grandfather, the ownership of the father and son is equal”.
This means that the son can enforce a partition in ancestral property, that is, property descending to the father from his male ancestors. Such property becomes coparcenary property in the hands of the sons.
That is, their sons, grandsons and great- grandsons can claim a share in it by birth.
The share obtained by enforcing a partition would also be coparcenary property.
The self-acquired property of the coparceners may be kept apart by them or may be blended by them with the coparcenary property.
When it is thrown into the common hotchpots it is blended with it and becomes coparcenary property.
Property purchased by a female with her funds would not without any other evidence divest the owner of a right in property so as to give it the character of joint family property.
Lakshmi Ammal v. Muthu Gounder, AIR 2003 Mad 25.

Ancestral Property(పూర్వీకుల ఆస్తి)

An ancestral property in general terms is a property or a land parcel that belonged to one’s ancestors. However, 27-year-old Ajinkya from Mumbai is doubtful whether he will receive his share of his ancestral property, a farm land that was bought by his grandfather. His father is now planning to sell off the land without his consent. What are his options to reclaim his share?
According to the Hindu law, properties can be classified into two — an ancestral property and a self-acquired property. An ancestral property is, in fact, a self-acquired and undivided property of a person’s grandfather.
MakaaniQ lists the essential facts pertaining to the rights to secure a share in an ancestral property:

What is an ancestral property?

Legally speaking, an ancestral property is the one which is inherited up to four generations of male lineage.
The right to a share in an ancestral property accrues by birth itself, unlike other forms of inheritance, where legacy opens upon the death of the owner.

The share of father and son in ancestral property

A father (current owner of the ancestral property) and his son have equal ownership rights over the property.
However, the share of each generation (the father and his siblings) is decided first after which the successive generations have to subdivide the portion inherited from their corresponding predecessor.

The share of sons and daughters in ancestral property

The Delhi High Court had ruled in 2016 that an adult son had no legal claim on his parents' self-acquired property. “Where the house is a self-acquired house of the parents, a son, whether married or unmarried, has no legal right to live in that house and he can live in that house only at the mercy of his parents up to the time the parents allow” said the order.
Once an ancestral property is partitioned between the family members, it would cease to be ancestral property. A father has a choice to not will-out his self-acquired property to his son. However, this is not valid in case of ancestral properties.
The Hindu Succession (Amendment) Act, 2005 confers the status of a coparcener on daughter giving equal rights (with the son) on an ancestral property. Only male members of the family were coparceners prior to the amendment which has modified the Section 6 of the original Hindu Succession Act of 1956 that did not mention daughter's right in a coparcenary property.

Some facts about ancestral properties:

The right to a share in an ancestral property comes by birth.
Coparceners, including daughters can seek a partition and sale of the ancestral home as well secure his or her share.
Referring to Ajinkya’s question above, properties of the paternal ancestors cannot be sold without the consent of the successors. However, it can be reclaimed by filing a suit for partition in a court.
Similarly, if your share is denied you can send a legal notice demanding your rights.
The property is regarded as an ancestral property provided it is not divided by the members of a joint Hindu family.
Once the inherited property is partitioned, the share received by each coparcener becomes his or her self-acquired property.
Properties acquired from the maternal side does not qualify to be an ancestral property.
The head of a Hindu undivided family has the power to manage the family assets under the Hindu law. But when it comes to ownership and rights over an ancestral property, each coparcener is entitled for getting his or her share.

Joint Hindu family differs from the Coparcenary:

No	Joint family	Coparcenary
1	Both Males and Females are the members of the joint family	Only male member are the members of Coparcenary.
2	There is no limitation of degrees or generations with regard to the membership of the Joint Family.	In Coparcenary, Males upto four degrees (including senior most male) or generations from the senior most male members are the members of the Coparcenary.
3	Some members, i.e. Female members have no right by birth in the property.	In Coparcenary all members have the right in the property by birth.
4	Certain females like Father’s wife, Mother, Grandmother etc. have no right to demand partition.	In Coparcenary all the members have the right to demand partition.
5	The membership of Joint Hindu Family is acquired by birth or by marriage and consists of all persons literally descended from a common ancestor and their wives and unmarried daughters.	A Coparcenary is, much narrower body and it includes only those persons who acquired by birth or in exceptional case adoption by sons.
6	Every joint family is not a Coparcenary.	Every Joint Family is a Coparcenary.
7	A Joint Hindu family shall constitute even after the death of Manager/male/Karta and consisting only females.	A Coparcenary may come to an end with the death of the last coparcener or sole surviving coparcener.

Joint family or Hindu undivided family (HUF)

A joint family or undivided family is an extended family arrangement prevalent throughout the Indian subcontinent, particularly in India, consisting of many generations living in the same household, all bound by the common relationship.
A Hindu undivided family or HUF is a legal term related to the Hindu Marriage Act. The female members are also given the right of share to the property in the HUF.
There are various aspects of Hindu law relevant for the purpose assessment of income of HUF with Hindu Succession Act 1956 and Income Tax Act 1961 and wealth in the status of HUF, as well as the impact of the provisions of Hindu Succession Act 1956 as amended by Hindu Succession (Amendment) Act 2005 relevant for the purpose of assessment of income and wealth in the status of HUF under the Income Tax Act 1961.
In the case of Surjit Lal Chhabra 101 ITR 776 SC, joint family and undivided family are synonymous: "A joint Hindu family consists of persons lineally descended from a common ancestor and includes their wives and unmarried daughters. The daughter, on marriage, ceases to be a member of her father's family and becomes a member of her husband's family."
In 2016, a judgment of the Delhi High Court ruled that the eldest female member of a Hindu Undivided Family can be its 'Karta' (manager).

Karta:

In the entire Hindu Joint Family ‘Karta’ or ‘Manager’ occupies a very important position. There is no office or institution in any other system of the world can be compared with it. He is a person with limited power but he possess such vast power with in ambit of joint family which nobody enjoys.

Who is a Karta:

Karta means manager of joint family and joint family properties. He is the person who takes care of day to day expenses of the family looks after the family and protects the joint family properties.

Who can be a Karta:

It is a presumption that ordinarily senior most male member is the Karta and Karta is always a member in the family no outsider or stranger can become a Karta.
The senior most male member so long as he is alive may be, aged, infirm or ailing continues as Karta. By his death Kartaship will pass on to next senior most male member.
In the presence of senior most male member a junior cannot act as Karta but if all coparcener agree, a junior also can become a Karta.
Karta owes his position by consent or agreement of all coparceners.

Female Member:

Generally female member cannot become Karta but in exceptional circumstances female also can act as Karta.

Nagpur High Court held the view that mother even though not a coparcener, in the absence of adult male member can act as Karta.

In Commissioner of Income Tax Vs. Seth Govind Ram, the Supreme Court held mother or any female member could not be Karta of joint family and therefore cannot alienate joint family property.

Position of Karta:-

Karta is sui generis (of its own kind) the relationship between him and members is not like principal or agent or like partners in a partnership firm.

He is the head of the family and acts on behalf of other members.

He stands fiduciary relationship with other members but he is not a trustee, nobody can question what he spent unless charges of misappropriation.

When any coparcener charges of improper alienations made by Karta, burden of proof lies on him to prove such are malafide act of Karta.

Powers of Karta:

Powers of Management: The powers of management of the Karta are absolute. He can manage or mismanage the property, family affairs and business any way he likes without being questioned by anyone. He cannot be liable for positive failures. He can discriminate between family members. However, he cannot deny maintenance or occupation of property to any member of the coparcenary. The possibility is a check on the Karta’s absolute power. Affection and natural concern for the family members and the faith and confidence of the members in him is considered the most important check on his powers.
Right to Income or Remuneration and Expenditure: The income of the joint family property, in its entirety, must be given to the Karta. It is then his responsibility to allott the funds to members and to fulfil their needs. “The income of the Karta is considered expenditure incurred in interest of the joint family, in the interest of and wholly and exclusively for the purpose of the business of the Hindu undivided family, is not a deductible expenditure under the Income Tax Lawin computing the income of the Hindu undivided family.”The Karta controls the expenditure of the funds. The scope of his power to spend extends only to family purposes, i.e., management, protection of estate and residence, realization, maintenance, marriage, education, religious ceremonies, etc.
Right to Represent Joint Family: The Karta represents the family in legal, religious and social matters.His Acts are binding on the members of the family. The family does not have corporate existence; it acts only through its Karta. It has been held that if a Karta contracts debts in order to carry on a family business, he renders the entire family property, along with shares of the other members of the family, liable for such a debt.
Power Of Compromise: The Karta can compromise disputes regarding the family property and/or its management, family debts as well as other transactions. A malafide compromise can be challenged in a partition. The Karta can even compromise a suit pending in court, and the members will be bound by it. However, minor coparceners can use Civil Procedure Code. whereby the compromise has to be approved by the court if one of the parties is a minor.
Power to Refer a Dispute to Arbitration: The Karta can refer a dispute to arbitration. If the award is valid, it becomes binding on all members of the joint family.
Power to Contract Debts: The Karta exercises an implied authority by which he can contract debts or pledge the credit of the joint family for family or business purposes and pay interest on it.Such debts are binding on the entire family if the following conditions are fulfilled:

Debts for business purposes: The debts must be incurred in the ordinary course of business.
Debts for family purposes: Family purpose, in this context, has nearly the same meaning as a legal necessity, the benefit of estate and performance of indispensable and pious duties. The creditor must prove that the loan in question had been taken in the ordinary course of business, for family purposes or that he did make bona fide and proper inquiries regarding the existence of the need, in case he wants to hold the whole joint family liable for the debts.

Loan on Promissory Note: A loan taken or a promissory note executed by the Karta for the business or any family purpose, gives rise to the possibility of all members of the family to be sued, even though they may not be parties to it. Each member’s liability, however, is limited to the extent of their share in the property. The Karta, on the other hand, is personally liable.
Power to Enter into Contracts: The Karta can enter into contracts which will be binding on the family. The contract is specifically enforceable against the family also.

Kartas Duties and Liabilities:

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

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

Responsibilities of Karta:

The most basic duty of a Karta is to provide food, shelter, clothing, etc. To the members of the joint family. His many responsibilities include:

Maintenance: all coparceners, from the head of the family to the younger members, have the intrinsic right to maintenance. It is the responsibility of Karta to keep all members of the family. “Those who would have the right to share most of the properties have the right to have all their necessary expenses paid with their income.” Maynes, Treatise on Law and Hindu Use. If he unjustly excludes a member from maintenance or if he does not properly maintain a member, he can be sued for both, maintenance and maintenance stops.
Marriage: Karta is responsible for every marriage of unmarried members, especially for the marriage of daughters because it qualifies as a sacrosanct duty in the Hindu law. Marriage spending is removed from joint family ownership. If the expenses are externally incurred, they must be reimbursed by the joint funds of the Chandra Kishore family v. Nanak Chand AIR 1975 Of the 175.
Accounts at the time of partition: the partition leads to the end of the joint family status. Under Mitakshara Law, it means Severance of status and interest: it is an individual decision; in which a member wishes to separate from the joint family and enjoy an indefinite and unspecified quota separately.
The actual division of ownership: the specified shares do this. It is a consequence of the declaration of serious desire. It is, however, a bilateral action. The opening of the accounts refers to the investigation of the activities of the joint family assets. An inventory is prepared. This includes all the objects of the family property. The Karta under the Mitakshara law is required to disclose the accounts only if there are allegations of embezzlement, fraud or conversion of property or property of the family in common against him. In the absence of evidence of embezzlement, fraud or conversion against Karta, the coparcener who pursues the partition cannot request the disclosure of past relations of Karta with the joint property and property of the family (Ghuia Devi v. Shyam Lal Mandal AIR 1974 Pat 68 ). However, if the coparcener who is suing for the partition is completely excluded from the enjoyment of the property, he may ask to examine the accounts. After the termination of the status, Karta must account for expenses and income in a manner similar to that in which a trustee or an agent is accountable. This implies that Karta must report and report all profits.
Representation: Karta is the only representative of the family towards the government and all the other outsiders. It is because of this position that he has to perform different responsibilities and responsibilities because of the family. He must pay taxes and all other fees. He can also be sued on behalf of the family for his reports.