Back
IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
Himani Walia - Appellant
Versus
Hemant Walia & Ors. - Respondents
EX.P. 26/2019
Decided On : 23-03-2022
Stamp Duty - Family Settlement - Registration Act - Stamp Act - [EX.APPL.(OS) 338/2022] - The court discussed the nature of family settlements, the requirement of registration, and stamp duty implications. It referred to the settled position of law as established in Kale & Ors. v. Deputy Director of Consolidation & Ors. and Sita Ram Bhama v. Ramvatar Bhama. The court also highlighted the legal position on oral family settlements and the recording of a memorandum in writing. It concluded that family settlements are not required to be compulsorily registered, and stamp duty is not required to be compulsorily paid in respect of the same when the settlement has been initially arrived at as an oral partition and is thereafter put into writing for the purpose of information.
Fact of the Case:
The application sought waiver of payment of stamp duty and cancellation of notices received from the Registry of the High Court of Delhi and the Office of the Assistant Collector. The suit seeking partition and other reliefs was filed by the legal heirs of Late Sh. S.S. Walia. The parties arrived at a settlement, which was recorded in the 'Memorandum of Family Settlement and Arrangement' dated 16th October, 2018.
Finding of the Court:
The court found that the family settlement was in the nature of an oral agreement and did not require registration. It held that the payment of stamp duty by the legal heirs shall stand waived, and the notices issued by the various authorities shall stand cancelled and withdrawn.
Issues: The issues involved the waiver of stamp duty and cancellation of notices in relation to the family settlement recorded in the 'Memorandum of Family Settlement and Arrangement'.
Ratio Decidendi: The court relied on the settled position of law as established in previous judgments to conclude that family settlements are not required to be compulsorily registered, and stamp duty is not required to be compulsorily paid in respect of the same when the settlement has been initially arrived at as an oral partition and is thereafter put into writing for the purpose of information.
Final Decision: The court disposed of the application by waiving the payment of stamp duty and cancelling the notices issued by the various authorities.
ORDER
Prathiba M. Singh, J. (Oral). - This hearing has been done through hybrid mode.
EX.APPL.(OS) 338/2022
2. The present application has been filed on behalf of the Applicant/Decree-Holder-Ms. Himani Walia seeking waiver of payment of stamp duty in respect of the assets inherited by the various parties from the estate of Late Sh. S.S. Walia and his sister Dr. Urmila Walia. Further, the Applicant seeks cancellation of the notice dated 14th February, 2022 received from the Registry of the High Court of Delhi, as also notice dated 3rd March 2022 received from the Office of the Assistant Collector (Kalkaji), New Delhi.
3. The suit seeking partition and other reliefs, being CS (OS) No. 442/2018, was filed before this Court by the legal heirs of Late Sh. S.S. Walia who had passed away on 10th December, 2017. The deceased had a large number of moveable and immovable assets which included the business of a petrol station, export business, various immovable properties in prime localities in Delhi and Noida, fixed deposit receipts and bank accounts, paintings, antiques, artworks, shares in various companies and vehicles, etc. During the pendency of the suit itself, the three children and the wife of the deceased with the assistance of their Counsels had arrived at a settlement. Thereafter, the terms of settlement were incorporated into the 'Memorandum of Family Settlement and Arrangement' dated 16th October, 2018.
4. Thus, the settlement which was agreed upon by the parties had merely been put into writing in the said 'Memorandum of Family Settlement and Arrangement' dated 16th October, 2018. The said family settlement was approved and a decree in terms thereof was passed by this Court, vide order dated 16th October, 2018. The relevant portion of the said the family settlement and order, which clearly reflect that the parties had orally agreed to partition and the manner thereof, are set out below:
Memorandum of Family Settlement and Arrangement' dated 16th October, 2018:
"AND WHEREAS for the sake of records and to serve as an aid memoir, the parties hereto have decided to execute these presents to reduce the decisions taken by them with regard to the inter se distribution and allocation of the property and assets in writing. "
Order dated 16th October, 2018:
"3. She has thereafter travelled to India along with her child and has been staying here since then. The parties, along with the assistance of their counsels have arrived at a settlement which is recorded in the 'Memorandum of family settlement and agreement dated 16th October, 2018 (hereinafter 'Memorandum')"
5. It appears that in order to prepare the decree sheet, the Registry of this Court has directed furnishing of valuation reports of the assets for the purpose of calculating the stamp duty. Thus, the present application has been filed by the Applicant seeking waiver of payment of stamp duty and cancellation of the notices.
6. It is submitted by Id. Counsel for the parties that similar notices have been received by all the other legal heirs as well. In addition, various Collector's offices have already issued notices in respect of the stamp duty payable.
7. It must be noted here that the legal heirs of the deceased persons became part owners of the assets belonging to the two deceased individuals i.e., Mr. S.S. Walia and Dr. Urmila Walia, immediately upon their demise. The said assets were not transferred to the legal heirs, but have been inherited by them upon the demise of Mr. S.S. Walia and Dr. Urmila Walia. The 'Memorandum of Family Settlement and Arrangement' dated 16th October, 2018, is merely a recordal of the oral agreement as to the mode and manner of partition. Therefore, it is in the nature of a family settlement which was arrived at between the parties. The partition had been agreed upon between the parties by way of oral agreement with the intervention of their counsels. The memorandum of settlement does not itself partition the properties, but only records the same as an a
Family settlements documented after oral agreements do not require registration or stamp duty, affirming existing rights without creating new ones.
Point of law : Family property - Settlement - Admission - Statement made in the earlier plaint constitutes an admission under Order XII Rule 6 CPC. Thus, the Plaintiffs would be bound by the said adm....
Oral family settlements are valid and require no registration if acknowledged by all parties, and prior admissions bind parties in subsequent related suits.
The court determined that possession prior to a written memorandum of settlement negates co-ownership status under Section 2(15) of the Indian Stamp Act, thus penalties imposed without justification ....
A memorandum of partition acknowledging pre-existing rights does not require registration, distinguishing it from a deed of partition that creates new rights.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
