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Alienation of property by karta of family

 

if one of the executants to a sale deed or mortgage deed has the capacity to bind the whole estate, the transaction will bind the interest of all persons who have interest in that estate.

 

Mr. Sinha, however, contended that the fact that the appellant No. I was required by the alience, respondents 1 and 2. to join in the transaction clearly shows that Gurelal in executing the sale deed did not and could not act for him. We cannot accept the argument. For ascertaining whether in a particular transaction the manager purports to act on behalf of the family or in his individual capacity one has to see the nature of the transaction and the purpose for which the transaction has been entered into. A manager does not cease to be a manager merely because in the tran- saction entered into by him a junior member of the family, who was a major, or believed to be a major also joined. It is not unusual for alienees to require major members of the family to join in transactions entered into by managers for ensuring that later on no objections to the transaction are raised by such persons. Further, such circumstance is relevant for being considered by the court while determining the existence of legal necessity for such a transaction. But that is all. Here we find that Gorelal acted not merely for himself but also expressly for his minor son appellant No. 2. The money was required partly for paying antecedent debts, partly for paying public demands, partly for paying other creditors and partly for performing the marriages of appellant No. 1 and the latter's sister Ramjibai. It is thus clear that Rs. 45,000/- out of the consideration of Rs. 50,000/- were required for the purposes of the family. Even where such a transaction has been entered into solely by a manager it would be deemed to be on behalf of the family and binding on it. The position is not worsened by the fact that 655
a junior member joins in the transaction and certainly not so when the joining in by such junior member proves abortive by reason if the fact that member has no capacity to enter into the transaction because of his minority. In this connection we may make a mention of three decisions Gharib- Ullah v. Khalak Singh (1); Kanti Chunder Goswami v. Bisheswar Goswami (2); Bijrai Nopani v. Pura Sundary Dasee (3) each of which proceeds upon the principle that if one of the executants to a sale deed or mortgage deed has the capacity to bind the whole estate, the transaction will bind the interest of all persons who have interest in that estate.
 
Supreme Court of India
Radhakrishnadas vs Kaluram on 10 April, 1962
Equivalent citations: 1967 AIR 574, 1963 SCR (1) 648


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