The property of the Hindu Undivided family (HUF) is managed by the Karta keeping the interest of the family in view till a partition is effected. A question arises whether the Karta is competent to make a gift of the ancestral property. The matter has been subject to controversy as to whether a gift can be made without the consent of other coparceners.
The above question came for consideration before the Supreme Court wherein it was observed as below:
“It is trite law that Karta/Manager of a joint family property may alienate joint family property only in three situations, namely:
- legal necessity
- for the benefit of the estate and
- with the consent of all coparceners of the family.
It is settled law that where an alienation is not made with the consent of all the coparceners, it is voidable at the instance of the coparceners whose consent has not been obtained.”
It was also observed that “It is well settled that a Hindu father or any other managing member of a HUF has power to make a gift of ancestral property only for a **‘Pious purpose’** and what is understood by the term ‘pious purpose’ is a gift for charitable and/or religious purpose. Therefore, a deed of gift in regard to the ancestral property executed ‘out of love and affection’ does not come within the scope of the term ‘pious purpose’. It is irrelevant if such gift or settlement was made by a donor, in favour of a donee who was raised by the donor without any relationship.”