is oral family settlement valid

by Kali Davis Published 2 years ago Updated 2 years ago

Full Answer

Do family settlements have to be in writing?

“There is no provision of law requiring family settlements to be reduced to writing and registered, though when reduced to writing the question of registration may arise. Binding family arrangements dealing with immovable property worth more than rupees hundred can be made orally and when so made, no question of registration arises.

What is a family settlement agreement?

A family settlement is an agreement mutually worked out by a settler among his family or by family members among themselves as to how the common property should be distributed and sold separately following the agreement. It settles the division or distribution of common property that the family members already own as common property.

When do courts give effect to family settlement?

“ Courts give effect to a family settlement upon the broad and general ground that its object is to settle existing or future disputes regarding the property amongst members of the family. The word “family” in the context is not to be understood in a narrow sense of being a claim to share in the property in dispute ”.

Is a family settlement document compulsorily registrable?

The Patna High Court also held that where the document itself contains or embodies the terms of the family settlement it will be compulsorily registrable but not when it speaks of the past.

Is oral partition valid in India?

The Supreme Court has observed that a plea of partition for the purpose of Section 6(5) of the Hindu Succession Act based on oral evidence alone cannot be accepted.

What is family settlement deed India?

A family settlement is essentially an agreement where family members mutually work out how a property should get distributed among themselves. All the parties should be related to each other and have a claim to a share of the disputed property.

What is settlement deed in Tamil Nadu?

Settlement Deed Stamp Duty in Tamilnadu The registration charge is also 1%, the maximum limit being Rs. 4,000/-. Apart from the family members, the settlement deed among outsiders has a stamp duty of 7% and a registration fee of 4% of the property's market value.

Can oral partition be challenged?

Jagdish Prasad Sharma, reported as 2016 SCC OnLine Del 984, while hearing an appeal from the judgment and decree of the Trial Court, had in reference to the plea of 'oral partition' observed that such a plea can only be permitted in cases where a party establishes any pre-existing right or share in the property.

Can family settlement be challenged?

While a duly executed family settlement cannot be revoked, except by a court decree, it can be challenged in a court of law under the following circumstances. Any misrepresentation of facts regarding the title of the disputed property, too, can lead to future altercations. Improper execution.

Can settlement deed be challenged?

While a settlement deed is made to settle the disputes, there are chances that dissatisfaction crops up due to misinformation, misrepresentation, fraud, coercion, improper execution or concealment of facts among many other factors, in such a case a settlement deed CAN be challenged.

Which is better will or settlement deed?

always settlement deed is better than Will. since only after probating before the High Court you will be considered as the owner. but in settlement deed once you have registered you become the owner on the next second. yes there can be a clause can be added in respect of transferring the share after his death.

Can a registered family settlement deed be Cancelled?

This is one among several cases where abandoned parents go to the Registration Department or move court seeking revocation of transfer of immovable assets, a senior official in the Registration Department said. But the rule is clear that unconditional settlement deeds cannot be cancelled unilaterally.

Is it necessary to register family settlement deed?

A settlement doesn't require registration if it is oral. But for the written word to be considered legal, registration is a good option because it is accepted in a court of law.

Is it necessary to register family settlement?

There is no provision of law requiring family settlements to be reduced to writing and registered, though when reduced to writing the question of registration may arise.

What is the difference between partition deed and family settlement deed?

The primary difference between the two is that under a partition deed the terms and recitals of a family arrangement are made whereas a MOFS just records the terms of family arrangement that were already orally decided and agreed between the family members i.e. recording past transaction of division/ partition of ...

How do you execute a family settlement deed?

you need prepare the mutual deed/ agreement between the parties with the terms and conditions and signed by the two witnesses after that need to get registered that deed from the concern registrar office, which could be SDM or any other Revenue officer of the particular area.

Is an oral settlement agreement void?

It is difficult to prove in Court that there is an oral settlement agreement when it is disputed by any family member, and such agreement must not be void or voidable under the Indian Contract Act, 1872. Every settlement agreement relating to immovable property must be in writing to avoid complexity in litigation.

Is oral agreement legal?

Oral agreements are never “Legal”. Most of the times, we tend to resort to oral agreements between our closed ones or friends, etc when it comes to dealing with Money matters.

Is oral agreement a fool proof agreement?

At all times, oral agreement is never a fool-proof compared to written agreement that is duly registered to be legal, when a case of dispute arises. Saifullah. , SR Legal Consultant (2000-present) Answered 3 years ago · Author has 285 answers and 251.6K answer views.

Can oral agreements be enforceable?

If oral agreements are otherwise enforceable then evidence of the terms of the agreement may be more difficult to prove than a written agreement. It’s certainly possible to deny the existence of an oral agreement, but there are often other ways to prove the existence of the terms of the agreement.

What is family settlement?

Why family settlement is an ideal option?

The dispute over common family property is quite a usual thing occurring in every family. When there is a need to divide the common property the unhappy beneficiary may challenge the negotiated settlement and take the matter to the court.

How many witnesses are needed to sign a family settlement?

The family settlement document must be signed by all the family members involved. The document should be attested by two witnesses, though it is not legally mandated. The document should be registered at the registration office. A family settlement that intends to assign immoveable property requires registration.

What is the object of a family arrangement?

The object of such an arrangement is to protect the family from long drawn litigation which mars the unity and solidarity of the family and create hatred and bad blood between the various members of the family.

What happens if a family member has no title?

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 favor ...

Where to register a family settlement?

The document should be registered at the registration office. A family settlement that intends to assign immoveable property requires registration. The stamp duty depending on the value of the property applies to such a document.

Is a family settlement a transfer of property?

A family settlement is not a transfer of property. It is an arrangement of division of a specific property among members of the family based on a settlement where the members derive no new benefit except specific assignment of their already owned common property. A family settlement deed cannot be used to transfer a property to a person who has no ...

What are the implications of family settlement?

The legal implications of a family settlement, from the perspective of general law, the Transfer of Property Act, the Registration Act, the Income-tax Act, etc has been explained in a succinct manner . All the important case laws on the issue have been cited

How to make a family settlement agreement?

A family settlement arrangement be made oral. The concerned parties to deliver possession of the property allotted and the title deeds and records to the other. After few days, affidavits be recorded reciting therein the factum of settlement, date of settlement properties allotted, possession transferred documents of title handed over and arrangement implemented and acted upon etc. The parties may make necessary application for mutation in respect of agricultural land and for entry in register of record / title maintained by the municipal Council or local authority. If the property stands let out, notice of attorning in favour of the recipient be given, fresh rent deed be got executed and recipient to issue receipt. Necessary modification be got made with appropriate tax Departments for lands and buildings tax, house tax and to her taxes, electricity water etc. After some time a memorandum or confirmation recording the event may be executed for own satisfaction. It should not be in present tense but should be in past tense. It should not create or confer any interest or right or title but may acknowledge the factum of claims accepted and acted upon.

What evidence is needed for a family settlement?

Thus, prior to the settlement there should be some evidence of claims or counter claims or differences or disputes between the members of the family on this issue which will justify a family arrangement taking place. The best evidence of this would be litigation in court or exchange of legal notices between parties, and adjudication through arbitrator. But this is not absolutely essential – Pulliah v. Narsimham AIR 1966 SC 1836. Further, it may also be noted that in the case of non Hindus also family settlements can be arrived at between the members of the family.

What is family arrangement?

“ A family arrangement is an agreement between members of the same family, intended to be generally and reasonably for the benefit of the family either by compromising doubtful or disputed right or by preserving the family property or the peace and security of the family by avoiding litigation ...

What is family in law?

The word ‘family’ in the context of a family arrangement is not to be understood in a narrow sense of being a group of persons who are recognized in law as having a right of succession or having a claim to share in the property in dispute.

How does a family settlement work?

In a family settlement, each party takes a share in the property by virtue of independent title which is admitted to that extent by the other parties. Every party who takes benefit under it need not necessarily be shown to have under the law claim to share in property.

Which considerations will lead a court to support a family arrangement?

Considerations which will lead a court to support a family arrangement are that as a result of the family arrangement disputes are avoided in the family, the honour of the family is safeguarded, or various obligations, morally binding on a family, are provided for , or family property is continued in the family (see para 305 of Halsbury’s Laws of England).

What would happen if a family arrangement was not registered?

The Supreme Court held that even if a family arrangement which required registration was not registered, it would operate as a complete estoppel against the parties who have taken advantage of the family arrangement.

Why is family arrangement important?

The Supreme Court further held that the object of the family arrangement is to protect the family from long-drawn litigation or perpetual strifes which mar the unity and solidarity of the family and create hatred and bad blood between the various members of the family. It promotes social justice through wider distribution of wealth. It was, therefore, observed that Courts lean in favour of family arrangements. Technical or trivial grounds are overlooked. Rule of estoppel is pressed into service to prevent unsettling of a settled dispute.

What is the Supreme Court case Thulasidhara v. Narayanappa?

Narayanappa, 2019 SCC OnLine SC 645, the Supreme Court has held that a family arrangement, in the form of a document that mentioned the list of properties which were partitioned, though not registered, would operate as a complete estoppel against the parties to such a family settlement. It was held that even without registration a written document of family settlement/family arrangement can be used as corroborative evidence as explaining the arrangement made thereunder and conduct of the parties.

Is a memorandum of an earlier family arrangement binding?

It was held that, therefore, a document which is in the nature of a memorandum of an earlier family arrangement and which is filed before the court for its information for mutation of names is not compulsorily registrable and therefore can be used in evidence of the family arrangement and is final and is binding on the parties.

Can a document not registered be proved?

Thus, as provided by Section 49 of the Registration Act, any document, which is not registered as required under the law would be inadmissible in evidence and cannot therefore be produced and proved under Section 91 of the Evidence Act.

Thursday, 31 March 2016

Before dealing with the respective contentions put forward by the parties, we would like to discuss in general the effect and value of family arrangements entered into between the parties with a view to resolving disputes once for all.