Suit for partition | A, B, and C are members of a Joint Family. A and B are the managing members. A and B borrow money from P for the Joint Family. Since they failed to repay on time, P filed a suit which was decreed against A and B as managers. Discuss whether this Decree can be executed…

Question: Suit for partition | A, B, and C are members of a Joint Family. A and B are the managing members. A and B borrow money from P for the Joint Family. Since they failed to repay on time, P filed a suit which was decreed against A and B as managers.

Discuss whether this Decree can be executed against C’s share in the Coparcenary Property. Can “C” File a suit for partition and claim an injunction against T from executing the decree against his share?

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Answer

As per the provisions of Hindu Law, a Karta of the Hindi Undivided Family has very wide powers and he can carry out various acts for the benefit of the joint family. Owing to the fiduciary role in the family, the Karta is expected to make decisions for the general well-being of the members of the family. In his bonafide role, a Karta takes decisions on behalf of the family members.

The Karta is equipped with the power to contract debts for the ordinary purpose of the family business. However, the pre-requisite for such debt is that it should be taken for the ordinary purpose of the family business. Even in cases where the Hindu Undivided Family (HUF) has no business being carried upon, still, the debts incurred by the Karta will be binding on the HUF provided that they have been made for the interest of the family and with a bona fide intention.

As per Article 240(2) of the Mulla’s Hindu law, a Karta has got an implied power and authority to borrow money for family purposes. Furthermore, if the Karta lends money or signs a promissory note for the purpose of borrowing money for the benefit of the undivided joint family, then the family may be sued even if they are not parties to the contract.

However, in such cases, the other members are liable, but only to the extent of their shares in the property as against the Karta who is personally liable for the same.

The present question is whether the decree can be executed against C’s share in the coparcenary property and whether he can file a suit for partition. Looking at the abovementioned explanations, upon the non-fulfilment of the duties of a Karta, it falls on the other members of the family to fulfil the obligation taken by the Karta.

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