All legal heirs must share latent liabilities, such as property penalties, to ensure clear title transfer under a conciliated agreement.

ORDER :

EX. APPL. (OS) 550/2025

1. The present application has been filed by the Judgment Debtor No.1 seeking necessary directions against the Decree Holder for non-compliance of the order dated 12.03.2025.

2. Learned counsel for the Judgment Debtor No. 1 states that under the Conciliated Agreement dated 20.12.2019, the Plot No. 635, Sector-22-B, Palam Vihar, Gurugram, Haryana (‘Gurugram property’ or ‘Plot no. 635’) has fallen to the share of Judgment Debtor No. 1:

2.1. He states that the Judgment Debtor No. 1 has approached HUDA for executing title documents and mutating the said Gurugram Property in his favor, on the basis of the settlement.

2.2. He states that Plot no. 635 was allotted to deceased i.e., late Dr. Hemlata Gupta. He states that as per the terms of allotment deceased had to carry out minimum construction in the plot. He states that the deceased failed to carry out construction and this has led to imposition of penalties by HUDA on the allottee.

2.3. He states that penalty to the extent of Rs. 50 lakhs is outstanding as on the date.

2.4. He states that the Decree Holder learnt about the quantum of the penalty after the filing of the present execution petition.

2.5. He states that to acquire title in the said Gurugram property the penalty has to be first paid, before the title deed can be executed in favour of Judgment Debtor No. 1 by HUDA.

2.6. He states that the Judgment Debtor No. 1 has complied with all its liabilities under the Conciliated Agreement dated 20.12.2019 and has also executed the Relinquishment Deed in favor of the Decree Holder on 06.03.2025 with respect to the Property No. 48, Gagan Vihar, Delhi 110051 (‘Gagan Vihar property’).

2.7. He states that since the Decree Holder along with Judgment Debtor No. 2 were entitled to 2/3^rd share in the said Gurugram Property; therefore, they must contribute to the extent of their share towards penalty. He states that the liability to pay the penalty of Rs. 50 lakhs has to be borne by the estate of late Dr. Hemlata Gupta and since the other properties have been received by the Decree Holder and Judgment no. 2 they must cooperate in clearing these dues.

2.8. He states that Judgement Debtor No. 1 has similarly contributed towards MCD House tax dues for the period 2012 to March, 2025 the Vasant Kunj property.

3. In response, learned counsel for the Decree Holder states that he has taken instructions and Decree Holder and Judgment Debtor No. 2 are unwilling to contribute towards penalties levied by the HUDA on the Gurugram property.

4. This Court has heard the learned counsel for the parties.

5. The parties herein are legal heirs of late Dr. Hemlata Gupta, who was their paternal uncle aunt. There were disputes between the parties with respect to the estate of the deceased aunt, which was a subject matter of TEST CAS. No 49/2013.

6. The parties arrived at a conciliated agreement on 20.12.2019 before the Mediation Centre with respect to the division of movable an immovable estate. The Gurugram property fell to the share of Judgment Debtor no. 1. The agreement categorically records at clause 6(b) that all parties will cooperate before HUDA to ensure that the Gurugram property is transferred in favour of the Judgment Debtor no. 1.

7. The fact that there are penalties outstanding qua the said Gurugram property is not provisioned for in this agreement. It is therefore apparent that this was a latent liability qua the property, which parties were not aware of. Without paying this liability, admittedly title cannot be transferred in favour of the Judgement Debtor No. 1. However, this latent liability qua Gurugram property can be discharged by the parties by paying the penalties to HUDA.

8. Decree Holder has not disputed that similarly liabilities towards house tax for Vasant Kunj property has been borne by all the parties.

9. It is thus the obligation of the Decree Holder and Judgment Debtor No. 2 to ensure that Gurugram property is transferred in favour of Judgment Debtor no. 1 and towar