Status of HUF - urgent
Bhushan K
(Querist) 27 April 2011
This query is : Resolved
Dear all,
I am in need of the resolution of the following query.
Father, mother and unmarried daughter were part of HUF. The daughter got married and later father expired leaving his wife and married daughter. My queries are as follows:
1. What is the status of HUF, dissolved or continuing?
2. If continuing, who will become karta ?
3. If dissoved who are cLaimants to HUF property?
Need help urgently.
Thanks
BKG
Srajadvo460
(Expert) 27 April 2011
For all your queries the citation below is the answer. At present even females are part of HUF from the date of birth and both male and females have equal rights, even after marriage they are coparcenors of the HUF. Further the property devolves over the surviving coparcenors and karta equally.
CIT v. Veerappa Chettiar, 76 ITR 467 (SC)
Even when a joint family is reduced to female members only it continues to be a HUF
Bhushan K
(Querist) 27 April 2011
Thanks for the quick reply..
In case of CIT vs Seth govingram sugar mills supreme court held that married daughter is coparcenor in fathers HUF but not a member and can not become karta. Widow of karta not being a coparcenor cannot become karta. In this case how the HUF will run without karta
Thanks
R.Ramachandran
(Expert) 28 April 2011
In CIT Vs. Seth Govindram Sugar Mills [AIR 1966 SC 24, the Hon'ble Supreme Court has upheld the views of the Madras High Court in V.M.N. Radha Ammal v. CIT. The Madras High Court had held as under:
"The right to become a manager depends upon the fundamental fact that the person on whom the right devolved was a coparcener of the joint family... Further, the right is confined to the male members of the family as the female members were not treated as coparceners though they may be members of the joint family."
"The managership of a joint Hindu family is a creature of law and in certain circumstances, could be created by an agreement among the coparceners of the joint family. Coparcenership is a necessary qualification for managership of a joint Hindu family."
"It will be revolutionary of all accepted principles of Hindu law to suppose that the senior most female member of a joint Hindu family, ..could be the manager of the family... She could not be the manager of the joint family for she is not a coparcener."
Further, even though a daughter is a co-parcenar, but ceases to be a member of the family on her marriage. Therefore, she cannot be the Karta of the family left behind by her father.
It has been held that a wife cannot be a Karta in absence of her husband. See Sheogulam v. Kisun Choudhury AIR 1961 AP 212.
Thus, there is no Karta in the HUF. The HUF will come to an end. Mother and daughter are the beneficiaries of the properties of the HUF.
Sarvesh Kumar Sharma Advocate
(Expert) 28 April 2011
