Forget what the bank says.
File a case before consumer commission where in you would get both orders of operation of account as well as compensation.
Can wife/married daughter become Karta in HUF account after death of husband/father?
Application submission on 5th May, 2021.(BANK OF BARODA) There are few queries that I would like to request you all to address in our case: Our's is an HUF account. As per the Hindu succession Act 2005, in case where the male karta's death and no other male member existing, the eldest woman coparcener can become the karta. So why am I being denied this right? There are clarifications on this as well as you may want to reject my claim based on the fact that I am married. Agreed. As per the same rule mentioned earlier, the married daughter ceases to be a member of the HUF but are still the coparceners in their parental side of family. Let me know or point me in the right direction if I am wrong.(Provide written proof or links that I can refer to to expand my knowledge with if I am wrong) My father has already nominated my mother for the said bank account and me for all the fixed deposits under that account. The whole purpose of nomination is that the members of the deceased person does not need to go through this gruesome process that I am going through along with aiding the bank to process the claim faster. Why did the bank fail to do this in our case? We have already submitted both my and my mothers aadhar cards and pan cards as proof. In between these 33 days, we have submitted all the requested documents including the affidavit and guarantee to process our account. We have also done the due diligence on our part of following up every two-three days to make sure nothing was missing from our side but never got any query from the bank. We were told at the time of claim submission that since women cannot be karta we have to dissolve HUF and that my mother will get all the funds. We agreed to believe so as we were left with no other choice. The bank also told us that we need to submit a no objection certificate(attested by a legal notarized officer) from my side mentioning I have no objection in doing so. We also had to provide two guarantees as the fund in said account was more. We did furnish all of these details along with the legal air certificate that was already approved by the tehsildar of Nadiad. If this was not proof enough to prove our genuineness, the branch Manager Sir and respective team members of the bank had personally visited our home and made sure there were no issues whatsoever. Now we get an email from the bank mentioning that we need to file a declaratory suit and obtain an order. Everyone knows it's not a formality of 1 or 2 days. What was the reason that the concerned authorities needed this declaratory suit to be filed? Why were we not told earlier the moment we submitted the claim? Assume that the bank members involved did not know the process, taking 33 days to notify us that we need this document is unacceptable. It's a complete violation of RBI's instruction to finalise this in 15 days. Bank said after 33 days HUF have to file declaratory suite & obtain order. Can you help me in this matter?
Asked 3 years ago in Property Law
Religion: Hindu
10 Answers
It is obvious that the bank wants all the documents in order to play safe and therefore is doing all this.
In the case of Mrs Sujata Sharma vs Shri Manu Gupta & Ors [CS (OS) 2011/2006], the Delhi high court held that an eldest female member of a family, being the coparcener in an HUF, may become the karta of an HUF. The court held that the Hindu Succession (Amendment) Act, 2005 which placed female coparceners on equal footing with male coparceners also extends to the position in relation to a karta of an HUF. The said amendment also states that a female coparcener shall not cease to be a member of her father’s HUF upon her marriage.
You should file a complaint before the consumer forum on grounds of deficiency in services.
You may also file a complaint against the bank before the banking ombudsman.
Eldest women coparceners can become karta of HUF
2) In any case you had agreed to dissolution of HUF and submitted NOC that funds be transferred to mother account and also agreed to furnish guarantees
3) not necessary to file declaratory suit
4) bank does not want to take any risks and hence is insisting on filing suit
4) engage local lawyer for filing declaratory suit
Thank you very much for your valuable reply but I have one more question. I have emailed last week all of the question to bank of baroda and just today bank said daughter/my wife can became a KARTA and bank asking the documents. so can you please guide us. now in the family married daughter with one 4 years son and mother only. What are the documents required for the daughter to became KARTA after the death of her father? Thank you Yogesh Patel
Asked 3 years ago
declaration from the members forming part of the HUF declaring the eldest coparcener as the new karta of the HUF.
Also declaration from the members forming part of the HUF along with the death certificate of the old karta may be mandated by banks in order to give effect to the change of name of karta in the HUF's bank account.
Dear Sir,
1. As rightly mentioned under the Hindu Succession Act, Eldest Women Coparceners can become the Karta of HUF.
2. It is not necessary to file a declaratory suit. if you wish to do so, engage a lawyer for filing the same.
3. the only possible reason for the bank stressing on filing it, would be to avoid all possible risks and unavoidable circumstances.
4. the documents required to be submitted is a declaration from all the members of the HUF that the eldest coparcener will be the new Karta of HUF.
5. further a declaration that they have no objection to the same, the death certificate of the old Karta may be asked by the banks. They would need the same to make changes in the HUF's bank account details.
Thank You
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On the death of the Karta, his HUF can continue and the next senior-most coparcener of the family shall be the Karta.
In case of death of a coparcener, his share in the property of a Joint Hindu family shall devolve by testamentary will or intestate succession, as the case may be, and not just by survivor-ship.
When the Karta of the HUF has expired then bank account remains the same subject to submission of declaration cum no objection letter to the bank from the new Karta and co-parceners . The letter shall provide the following information.
- Request to delete the name of deceased Karta from bank’s record (type and account number to be specified) with the copy of death certificate.
- Name of newly appointed Karta to be mentioned and his relationship with the deceased Karta.
- Request to register update the name of new Karta of the specified HUF account in place of deceased Karta and allow him to operate the said HUF account.
- No objection for appointment of (Name of the member) new Karta of HUF account
- The declaration cum no objection letter from co-parceners for deletion of name of existing Karta and appointment of New Karta to be signed by the new Karta and all the major co-parceners of the family.
In case of larger balance in the HUF account many banks obtain affidavit cum indemnity from surviving members and legal heirs with two guarantors confirming their acceptance to one of the members as a new Karta. Banks shall allow the new Karta to continue to operate the existing account on the basis of such documents, in HUF accounts. A similar procedure to be followed in cases where an account is to be closed and balance in the account to be paid to the new Karta. Document requirement may be different in different banks.
The Karta is traditionally the senior most male coparcener of the HUF. When Karta of the HUF dies, the next senior male member takes over as Karta. If the senior most member gives up his right, a junior coparcener can become Karta of the HUF, with the consent of all other major co-parceners as held by Supreme Court in Narendra Kumar J. Modi Vs CIT (1976) 105 ITR 109 (SC).
As per Hindu Succession (Amendment) Act, 2005 the daughters of a family who are governed by Mitakshara Law, also become co-parceners in the HUF property. The above amendment further gave the women the right of survivor ship via amended Section 6 (1) (a) and (b) of Hindu Succession Act, 1956. This amendment gave them equal rights as the sons.
You can issue a legal notice to the bank in this regard after confirming the compliance of all the requirements as instructed by the bank earlier.
Karta (Manager) of HUF have sole authority over HUF account and also on every transaction on behalf of HUF account, made by each member of the family. Therefore, it is necessary to appoint a new Karta to allow operation in the account after the death of the Karta to allow further operation in the same account.
When the Karta of the HUF has expired then bank account remains the same subject to submission of declaration cum no objection letter to the bank from the new Karta and co-parceners . The letter shall provide the following information.
- Request to delete the name of deceased Karta from bank’s record (type and account number to be specified) with the copy of death certificate.
- Name of newly appointed Karta to be mentioned and his relationship with the deceased Karta.
- Request to register update the name of new Karta of the specified HUF account in place of deceased Karta and allow him to operate the said HUF account.
- No objection for appointment of (Name of the member) new Karta of HUF account
- The declaration cum no objection letter from co-parceners for deletion of name of existing Karta and appointment of New Karta to be signed by the new Karta and all the major co-parceners of the family.
My father had an HUF. Me(daughter) and mother are only survivors. I have minor son. I have following questions: 1. Who can be karta of huf in our case? 2. Who will be coparseners in our case? 3. Can I add minor son's name in HUF?? Thank you
Asked 3 years ago
You can be the karta
2) A widow , cannot act as karta of the HUF after the death of her husband.
3) A wife of a coparcener or karta is only a member (who has limited rights and no ownership of the underlying property at birth), and does not qualify to become a coparcener.
Dear Sir/ Ma'm,
1. Mother will be the Karta since she is the eldest member of the HUF.
2. Members who were part of the HUF when father was Karta will continue to be the coparceners.
3. A minor becomes a part of the HUF from birth.
Thank You
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1. Your mother is just a member of the HUF, whereas you are one of the coparceners of the HUF.
Hence you can become the karta of the HUF provided there is no objection from other coparceners.
However your son do not have any rights in the HIUF property neither he will be considered as a coparcener. The rights for a share in the property will extinguish with you and it cannot be stretched to your next generation people.
However upon intestate death of the coparcener daughter, her share of properties shall devolve equally upon her own class I ;legal heirs.
2. Read the above answer.
3. Read the 1st answer above.