Consensual Relationship That Later Turns Sour Is Not Rape: Andhra Pradesh High Court Grants Bail in Breach of Promise Case Double Presumption of Innocence Applies; No Interference Unless Trial Court Judgment Is Perverse: Allahabad High Court in Murder Appeal Under BNSS A Single Act of Corruption Warrants Dismissal – 32 Years of Service Offers No Immunity: Punjab & Haryana High Court Upholds ASI’s Removal Suit Against Trustee Without Charity Commissioner’s Consent Is Statutorily Barred: Bombay High Court Government Can't Deny Implied Surrender After Refusing to Accept Possession: Madras HC Clarifies Scope of Section 111(f) of TP Act Custodial Interrogation Must Prevail Over Pre-Arrest Comfort in Hate Speech Cases: Punjab & Haryana High Court Denies Anticipatory Bail for Provocative Remarks Against Migrants Mutation Order Without Notice Cannot Stand in Law: Orissa High Court Quashes Tahasildar's Rejection for Violating Natural Justice Cruelty Must Be Grave and Proven – Mere Allegations of Disobedience or Demand for Separate Residence Don’t Justify Divorce: Jharkhand High Court Rejects Husband’s Divorce Appeal Retaliatory Prosecution Cannot Override Liberty: Himachal Pradesh High Court Grants Bail in PMLA Case Post CBI Trap of ED Officer Illegal Remand Without Production of Accused Is Not a Technical Lapse, But a Constitutional Breach: Andhra Pradesh High Court Grants Bail in Major NDPS Case Inherent Power Under Section 528 BNSS Not a Substitute for Article 226 When FIR Is Under Challenge Without Chargesheet or Cognizance Order: Allahabad High Court Possession Without Title Is Legally Insubstantial: Gujarat HC Dismisses Appeal By Dairy Cooperative Over Void Land Transfer You Can Prosecute a Former Director, But You Can’t Force Him to Represent the Company: Calcutta High Court Lays Down Clear Limits on Corporate Representation in PMLA Cases Conviction Cannot Rest on Tainted Testimony of Injured Witnesses in Isolation: Bombay High Court Acquits Five in Murder Case One Attesting Witness is Sufficient if He Proves Execution and Attestation of Will as Required by Law: AP High Court Land Acquisition | Delay Cannot Defeat Just Compensation: P&H High Court Grants Enhanced Compensation Despite 12-Year Delay in Review Petitions by Landowners Allegations Implausible, Motivated by Malice: Kerala High Court Quashes Rape Case After Finding Abuse Claims a Counterblast to Civil Dispute Adoptions Under Hindu Law Need No Approval from District Magistrate: Madras High Court Declares Administrative Rejection of Adoptive Birth Certificate as Illegal Findings of Fact Cannot Be Re-Appreciated in an Appeal Under Section 10F Companies Act: Madras High Court Equality Is Not A Mechanical Formula, But A Human Commitment: P&H High Court Grants Visually Impaired Mali Retrospective Promotions With Full Benefits Orissa High Court Rules Notice for No Confidence Motion Must Include Both Requisition and Resolution – Provision Held Mandatory Ashramam Built on Private Land, Managed by Family – Not a Public Religious Institution: Andhra Pradesh High Court Quashes Endowments Notification Cruelty Must Be Proved, Not Presumed: Gujarat High Court Acquits Deceased Husband In 498A Case After 22 Years Trade Dress Protection Goes Beyond Labels: Calcutta High Court Affirms Injunction Over Coconut Oil Packaging Mimicry Mere Filing of Income Tax Returns Does Not Exonerate the Accused: Madras High Court Refuses Discharge to Wife of Public Servant in ₹2 Crore DA Case

Delhi High Court Upholds HUF Property Status: Karta Lacks Individual Authority to Sell HUF Property

07 May 2024 8:19 AM

By: Admin


In a significant ruling that reinforces the legal status of Hindu Undivided Family (HUF) properties, the Delhi High Court, presided by Hon’ble Ms. Justice Neena Bansal Krishna, delivered a landmark judgment on November 1st, 2023. The Court held that a Karta, or the head of an HUF, lacks the authority to unilaterally sell HUF property. This ruling came in the context of a complex legal battle involving the sale of property initially acquired from compensation for ancestral property left in Pakistan.

The judgment is poised to have far-reaching implications on how HUF properties are dealt with in legal transactions. Justice Krishna, in her observation, stated, “Karta lacked authority to sell HUF property individually,” underscoring the legal limitations faced by the Karta in dealing with HUF assets. The Court further clarified the distinction between a Karta’s management rights over HUF property and the lack of authority to unilaterally execute sales agreements.

The case, involving Capt. Rajesh Sethi, his father Col. P.C. Sethi, and others, revolved around a disputed Agreement to Sell concerning a property in Defence Colony, New Delhi. The property, acquired post-partition, was contended to be an HUF property. While Capt. Sethi sought a declaration that the Agreement to Sell was void, the buyer, Sh. Ravinder Nangia, sought specific performance of the agreement.

In a pivotal part of the judgment, the Court dismissed the plea for specific performance by Sh. Ravinder Nangia, stating that he failed to demonstrate his readiness and willingness to perform his part of the Agreement to Sell. The Court observed, “Merely stating the readiness in the plaint itself is not sufficient to meet the rigors of Section 16 of the Specific Relief Act, 1963.”

However, in a partial relief to Nangia, the Court directed the refund of the advance amount of Rs. 39,00,000/- paid by him, along with interest, while dismissing his claim for damages.

This judgment reaffirms the legal sanctity of HUF properties and the limitations on the Karta’s powers in their alienation. Legal experts view this as a landmark decision that will guide future transactions and disputes involving HUF properties. The detailed analysis of HUF property laws and the Karta’s authority therein serves as a precedent in similar legal matters.

Date of Decision: 1st November, 2023

CPT. RAJESH SETHI S.C. VS P.C. SETHI

Latest Legal News