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Q.

Can Karta Sell HUF Property?

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3 months

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Recently, I researched can karta sell HUF property. I found the Supreme Court has affirmed that the Karta of a Hindu Undivided Family (HUF) can sell, mortgage, or alienate HUF property without obtaining consent from other family members, including minors.

  • In the case of N.S. Balaji v. Debt Recovery Tribunal (Order dated October 3, 2023), the Court reiterated earlier precedents such as Sri Narayan Bal v. Sridhar Sutar (1996) to affirm that the HUF acts through its Karta, and his property decisions are binding even without unanimous consent.

  • However, this power is not unfettered. The Supreme Court emphasized that if the sale or alienation is not driven by legal necessity or the benefit of the HUF estate, then co-parceners may challenge the transaction in court.

  • In the N.S. Balaji case, the sale was presumed valid because there was no challenge showing it was unnecessary or detrimental to the family’s interest.

While the Karta’s authority is upheld even to proceed without explicit consent, he must act in the bona fide interest of the HUF, and his actions are subject to scrutiny. If a coparcener believes the alienation was ill-conceived or self-serving, they have the right to legally contest it. I hope you found this information useful.

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