Junior members of the family are bound by decisions of a Karta in matters of family business and property unless it can be pleaded and proved that the head of the family has acted fraudulently or for immoral purposes.
The act of A.K. Sanghi in not honouring his undertaking to
withdraw his petition for making the award a rule of court and the
attempt made by Vijay Sanghi to obstruct the scheme of
reconstruction-cum-family settlement of 1994 by getting
transposed as an appellant in Company Appeal No. 30 of 1994
when his father A.K. Sanghi had signed the settlement on behalf of
his group, were impermissible conduct of approbate and reprobate
on the part of A.K. Sanghi group which should not have been
permitted. The status of the head of the family acting as a Karta
under the traditional Hindu law deserves to be kept in mind in
such a situation. The junior members of the family are bound by
decisions of a Karta in matters of family business and property
unless it can be pleaded and proved that the head of the family has
acted fraudulently or for immoral purposes. We have not been
shown any such case on behalf of Vijay Sanghi. In such a situation,
ignoring the traditional Hindu law and the rights of the head of the
family or Karta has put unnecessary burden not only on the larger
family but also upon the courts.
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 3687 OF 2006
Rajni Sanghi V Western Indian State Motors Ltd. & Ors.
Dated;December 01, 2015.
SHIVA KIRTI SINGH, J.
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