Property and Family Settlements : Supreme Court Explains the Law
An important Judgment was passed by Hon'ble Supreme Court on 21 January 1976.
In context of family settlements and immovable properties, it has been commented in Kale & Ors v Deputy Director of Consolidation [1976] GCtR 2959 (SC) thus : -
"To put the binding effect and the essentials
of a family settlement in a concretised form, the matter may
be reduced into the form of the following propositions:
“(1) The family settlement must be a bona fide one so as
to resolve family disputes and rival claims by a fair and
equitable division or allotment of properties between the
various members of the family;
(2) The said settlement must be voluntary and should not
be induced by fraud, coercion or undue influence;
(3) The family arrangement may be even oral in which
case no registration is necessary;
(4) It is well settled that registration would be necessary
only if the terms of the family arrangement are reduced into
writing. Here also, a distinction should be made between a
document containing the terms and recitals of a family
arrangement made under the document and a mere
memorandum prepared after the family arrangement had
already been made either for the purpose of the record or for
information of the Court for making necessary mutation. In
such a case the memorandum itself does not create or
extinguish any rights in immovable properties and therefore
does not fall within the mischief of Section 17(2) of the
Registration Act and is, therefore, not compulsorily
registrable;
(5) The members who may be parties to the family
arrangement must have some antecedent title, claim or
interest even a possible claim in the property which is
acknowledged by the parties to the settlement. Even if one of
the parties to the settlement has no title but under the
arrangement the other party relinquishes all its claims or titles
in favour of such a person and acknowledges him to be the
sole owner, then the antecedent title must be assumed and the
family arrangement will be upheld and the courts will find no
difficulty in giving assent to the same;
(6) Even if bona fide disputes, present or possible, which
may not involve legal claims are settled by a bona fide family arrangement which is fair and equitable the family
arrangement is final and binding on the parties to the
settlement.”
Kindly note that full text Judgments of Hon'ble Supreme Court can be downloaded absolutely free of cost (without any charges except internet data) from the official website at the link
https://main.sci.gov.in/judgments
Then entering the date of Judgment, for example, as 21 January 1976.
Written by
Vishal
Delhi
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