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Beereddy Dasaratharami Reddy v. V. Manjunath

Civil Appeal · 2021 INSC 880Decided 13 Dec 2021
Civil Appeal No. 7037 of 2021
Justice M.R. Shah · Justice Sanjiv Khanna

Background

In 2006, K. Veluswamy, acting as "Karta" (manager) of his Hindu joint family, signed an agreement to sell agricultural land to the appellant for Rs. 29 lakh and accepted a Rs. 4 lakh advance, with the balance due on execution of the sale deed. His son, V. Manjunath, did not sign the agreement and later opposed the sale, and the Karnataka High Court held the agreement unenforceable since the land was joint family property, the son's signature was missing, and no issue on "legal necessity" had even been framed at trial.

Decision Breakdown

The Supreme Court held that a Karta's long-settled power to sell joint Hindu family property for a genuine "legal necessity" does not require every adult coparcener's signature: the son's absence from the agreement was legally inconsequential once legal necessity was shown. It found the agreement itself recorded that the family needed funds for "domestic necessities" and to clear a bank mortgage, which was sufficient proof of legal necessity, and that the trial court not formally framing an issue on this point did not invalidate the trial since both sides had fully argued it. The Court restored the trial court's decree ordering specific performance of the sale, with the balance price to be deposited and possession handed over, even though the property had since been resold to a third party.

Lesson Learnt

A Karta can validly sell family property to meet a genuine family need, and that sale binds other family members even if they refuse to sign: a family member cannot defeat a sale made for real necessity simply by withholding consent.

Official source (sci.gov.in)View Judgment (PDF)

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