A Karta of a Hindu undivided family (HUF) has the power to make a gift of the ancestral property only for a pious purpose - SC

Bench: Justices S Abdul Nazeer and Krishna Murari

Case: KC Laxmana vs KC Chandrappa Gowda

Pious Purpose: is a gift for charitable and/or religious purposes.

The Apex Court has held that a gift deed of an ancestral property of a Hindu Undivided Family ("HUF") executed out of love and affection does not come within the ambit of 'pious purpose'. A Hindu father or any other managing member of a HUF has the power to make a gift of the ancestral property only for a pious purpose.

FACTS

In this case, a son filed a suit against his father for transferring a share of the ancestral property to a person who he had brought up like his own child, out of love and affection. The son argued that no such transfer can take place unless his consent is taken. The trial court dismissed the plea, and therefore, the son moved to the appellate court. The appellate court held the transfer void and the Karnataka High Court upheld the decision of the appellate court. 

The person who got a share of the property then moved to Top Court.

HELD

The SC held that the alienation of the joint family property in favour of the second defendant was voidable as the coparcener's (a person, who assumes a legal right in his ancestral property, by birth) consent was not obtained before the alienation. The top court further noted that Karta of a HUF property may alienate joint family property in the three following situations:

(i) legal necessity 

(ii) for the benefit of the estate and,

(iii) with the consent of all the coparceners.