Kartha is the senior most male member of the family 2. If the expenses are met externally, they must be reimbursed out of the joint family funds. Credit worthiness: Compared to the sole proprietor, the credit worthiness of the family business is definitely more. The interest in any coparcenary property is always fluctuating as the amount of interest varies with the birth and death of coparceners. No doubt, the adult coparceners become personally liable when they themselves are actually contracting parties along with the Manager, or if they ratify the contract entered into by the Manager, except in the case of a minor coparcener, who does not become personally liable unless the contract is ratified by him after attaining majority. Maynes, Treatise on Hindu Law and Usage.
It is also called as Hindu Undivided Family. Family income flows into a common pool, from which resources are drawn to meet the needs of all members, which are regulated by the heads of the family. The difference lies in the fact that in the former case while discharging indispensable duties, the Karta has unlimited powers in the sense that he can alienate the entire property for that purpose. As the name suggests, it is type of organization in which all the members of Hindu Undivided Family manage and control the business with the direction of head of the family. There are several schools of Hindu Law, such Mitakshara, the Dayabhaga, the Murumakkattayam, the Aliyasanthana etc.
It does not have any separate and distinct legal entity from that of its members. Their contention was that the act was done in furtherance of a legal necessity. Credit Facilities: In Joint Hindu Family Business the credit facilities are more. The Joint Hindu Family Business is a distinct form of business organization existing only in India. The burden of proving legal necessity lies on the banker and the banker has not only to prove the legal necessity but also to prove that it made reasonable inquiries and was satisfied as to the existence of the legal necessity. It is not even sole trading concern, but it is enlargement of sole trading concern in which continuity is guaranteed. These are the sons, grandsons and great grandsons of the holder of joint property for the time being.
The lineal male descendants of a person, up to third generation excluding him , acquires interest on the coparcenary property held by him. It is not even sole trading concern, but it is enlargement of sole trading concern in which continuity is guaranteed. The patriarch's wife generally exerts control over the kitchen, child rearing and minor religious practices. The rights in ancestral property are determined per stripes and not per capita. No outsider can become the member of Joint Hindu Family Business.
He has to pay taxes on behalf of the family. This is true because of the principle already referred above that it is not an essential requirement for a joint family to hold or possess property jointly? Large size: The joint family is large in size. It both modifies and codifies the Hindu Law. They all share the family burden together. In case of a partition already taken place, the general presumption would be that the joint status is no more available.
It has evolved from the ancient patriarchal family which can be described as the earliest unit of human society. But once the Karta dies, the position passes to the next senior-most male member; it may be the uncle, or brother or son. This means that the share of each generation is first determined and the successive generations in turn sub divide what has been inherited by their respective predecessor. Jugal Kishore Baldeo Sahai v. The Karta has to carry on the business with care, he has to protect the interest of the members, he cannot make secret profits.
Following are certain principles for the purpose of determining the jointness of any Hindu family:? Apart from all the unlimited powers that are bestowed upon the Karta, he also has liabilities thrust on him. It does not get transferred to members of the coparcenary. Shankar it was held that on the death of a sole surviving coparcener, a Hindu Joint Family is not finally terminated so long as it is possible in nature or law to add a male member to it. Arunachalam Chettiar case a father and his son constituted a joint family governed by Mitakshara School of Hindu Law. Origin of Joint Family System: It may not, however, be presumed that joint family system originated in India. The family in India is based on patrilineal descent. Property inherited from the father under the Hindu Succession Act, 1956.
Meaning of Joint Hindu Family Business 2. The business is carried on from generation to generation. The thinkers who criticize the system have not been able to appreciate it properly. Power to Contract Debts: The Karta has implied authority to contract debts and pledge the credit and property of the family. X has no interest in the property in the life-time of A. Members of the family take part in the various religious rites, ceremonies and sacrifices. In other words, if Karta dies or becomes incapable of managing the business then the succeeding co-parceners will act as Karta.
Unlimited Liability: The liability of the Karta is unlimited. Everyone in the enterprise must work under one command and unity of direction. The business is controlled by head of the family called as 'Karta'. They are as follows:- 1 Mitakshara: Only male members born in the family are eligible to get equal share in the property of the family. Both movable and immovable properly of the family is owned jointly. Over and above these causes the kinship idea and the religion emphasizing ancestor worship further made joint family a complex organisation catering to the spiritual and economic needs of the large family groups which composed the society.