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2025 Supreme(Del) 548

IN THE HIGH COURT OF DELHI AT NEW DELHI
Anil Kshetarpal, Harish Vaidyanathan Shankar, JJ.
S K Mittal - Appellant
Versus
NCT of Delhi & Ors. - Respondents
FAO(OS) 44 of 2022 & CM APPL. 30562 of 2025
Decided On : 25-08-2025

Advocates Appeared:
For the Appellant : Mr. Abhimanyu Mahajan, Mr. Saurabh Seth, Ms. Neelampreet Kaur, Ms. Anubha Goel, Mr. Mayank Joshi, Mr. Abhiroop Rathore, Advs.
For the Respondent: Mr. O.P. Gupta, Adv.

The Settlement Deed does not waive heirs' rights to self-acquired property. A valid transfer requires registration, and relinquishment must involve consideration to be enforceable.

Headnote:(A) Indian Succession Act, 1925 - Section 384 - Delhi High Court Act, 1966 - Appeal against dismissal of Letter of Administration application - Dispute over estate of deceased who died intestate and Settlement Deed regarding inheritance - Clauses 7(j) and 7(k) of Settlement Deed relevant to claims on ancestral and self-acquired properties; waiver requires consideration; mere expectation not binding. (Paras 1, 6, 14, 25)

(B) Legal Heirs - Class-I heirs recognized; relinquishment of rights in ancestral property does not affect rights in self-acquired property - Claim must be substantiated with registration if it is a transfer of rights. (Paras 29, 31)

Facts of the case:
The appeal was filed concerning the estate of Late Sh. Rajan Mittal, married with two sons, following marital discord and provisions made via Settlement Deed. The Appellant claimed entitlement based on the Deed while the Court found lack of relinquishment of claims pertaining to self-acquired assets.

Findings of Court:
Settlement Deed does not constitute a family settlement and does not relinquish rights to self-acquired properties - no registration led to invalidity of claims made under it.

Issues: The main issues involved identification of heirs and effect of the Settlement Deed on inheritance claims regarding both ancestral and self-acquired properties.

Ratio Decidendi: The court ruled that the Settlement Deed, despite including children as parties, did not effectively waive their rights to self-acquired property of the deceased as the renunciation was limited to ancestral properties.

Result: Appeal dismissed, affirming lower court's judgment.

Table of Content
1. marriage and settlement deed context. (Para 1 , 2 , 3)
2. key terms from the settlement deed. (Para 4 , 5 , 6)
3. arguments from both parties regarding rights. (Para 7 , 8 , 9 , 10 , 11)
4. court's analysis of the settlement deed. (Para 14 , 19 , 20)
5. understanding contract consideration under ic act. (Para 21 , 22 , 23)
6. implications of renunciation and estoppel. (Para 24 , 25 , 26)
7. discussion on entitlement and inheritance. (Para 28 , 29 , 30)
8. affirmation of the learned single judge's conclusions. (Para 31)

JUDGMENT :

ANIL KSHETARPAL, J.

1. The present Appeal has been filed by the Appellant under Section 384 of the Indian SUCCESSION ACT , 1925 read with Section 10 of DELHI HIGH COURT ACT , 1966, calling in question the correctness of the Judgment dated 04.05.2022 [hereinafter referred to as ‘Impugned Order’] passed by the Learned Single Judge in Test Case no.73 of 2021 captioned S.K. Mittal vs. NCT of Delhi & Ors., while dismissing his application for a Letter of Administration in respect of the estate of his younger brother, Late Sh. Rajan Mittal, who passed away intestate on 18.06.2021.

2. Late Sh. Rajan Mittal was married to Smt. Reshu Mittal on 15.02.1997 and had two sons, namely, Sh. Shrey Mittal (DOB 16.12.1997) and Sh. Tushaal Mittal (DOB 02.03.2000).

3. Subsequently, marital discord began between them and on 06.03.2018, a Settlement Deed was arrived at between Late Sh. Rajan Mittal and his wife, Smt. Reshu Mittal, resolving their marital discord, while also agreeing to apply for a Decree of Divorce by Mutual Consent. This aforesaid Settlement Deed was also signed by Sh. Shrey Mittal and Sh. Tushaal Mittal.

4. It is to be noted here that the primary intention of the Settlement Deed was with regard to resolving their matrimonial dispute. However, for the purpose of the decision of the present Appeal, Clauses 6, 7(j) and 7(k) of the Settlement Deed are relevant for the decision of the present case, which reads as under:

“6. That now in order to obtain the Decree of Divorce by Mutual Consent the First Party has agreed to execute a Gift Deed in respect of the entire First Floor and Second Floor having land share of 45% beneath these floors and hereinafter referred to as the Gift Property (excluding the Ground Floor, the right to construct basement beneath Ground Floor, terrace or roof rights including the right to construct a Third Floor having land share of 55% beneath these floors, hereinafter referred to as the Said Residual Property) of Property No. B-6/49, Safdarjung Enclave, New Delhi 110029 in favor of the Second Party No. 1 in respect of full & final settlement of all the disputes between the First Party and Second Party collectively (Second Party No. 1, 2 & 3).

7. That now all the parties have agreed to sign the present Settlement Deed on the following terms & Conditions:

..........

j. That the Second Party No. 2 and the Second Party No. 3 agree that the present settlement is full and final settlement for all their claims arising out of birth against the First Party towards any ancestral property, movable or immovable (past, present and future) etc.

k. That the Second Party No. 1 agrees that the present settlement is full and final settlement for all the claims of the Second Party No.2 and the Second Party No.3 arising against the First Party towards any ancestral property, movable or immovable (past, present and future) etc.”

5. Pursuant to the Settlement Deed, a petition under Section 13B of the HINDU MARRIAGE ACT , 1955, was filed, which was disposed of by the Family Court on 23.05.2018 dissolving their marriage by a Decree of Divorce by Mutual Consent. The Settlement Deed was produced in the proceedings before the Family Court, however, it never formed a part of the Decree of Divorce.

6. The Appellant (Sh. S. K. Mittal) claims that Sh. Shrey Mittal and Sh. Tushaal Mittal have waived and relinquished all their rights and claims over any and all the properties of the deceased (past, present, and fut

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