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2020 Supreme(SC) 462

A.M.KHANWILKAR, DINESH MAHESHWARI
RAVINDER KAUR GREWAL – Appellant
Versus
MANJIT KAUR – Respondent


Advocates Appeared:
For the Appellant(s) :Prem Malhotra, Advocate
For the Respondent(s):Sanjay Jain, Advocate

Judgement Key Points

The core issue in this case revolves around whether a family settlement document, executed between close family members, required registration under the applicable law, given that it pertains to immovable property worth more than a specified amount. Specifically, the question is whether the document in question, which purportedly records a family settlement and has been acted upon by the parties, constitutes a transfer of interest in immovable property that necessitates registration under legal requirements (!) (!) (!) (!) (!) .

Additionally, the case examines whether the documented family arrangement, which was entered into to resolve disputes and promote family harmony, qualifies as a family settlement that is binding and enforceable without registration, considering the nature of the document and the manner in which the parties have acted upon it (!) (!) (!) (!) (!) (!) (!) .

The dispute ultimately centers on the legal effect and validity of the family settlement document, especially whether its execution and subsequent actions by the parties create or transfer rights in immovable property that require formal registration, or whether it is merely a memorandum that does not necessitate such registration. The legal question is whether, under the relevant law and principles of family settlements, such an arrangement can be considered binding and enforceable without registration, or if the failure to register renders the document inadmissible or ineffective for establishing rights in the property.


JUDGMENT :

A.M. Khanwilkar, J.

1. This appeal emanates from the judgment and decree dated 27.11.2007 passed by the High Court of Punjab and Haryana at Chandigarh,1[For short, “the High Court”] in R.S.A. No. 946/2004, whereby the second appeal filed by the respondent Nos. 1 to 3 (heirs and legal representatives of Mohan Singh original defendant No. 1) came to be allowed by answering the substantial question of law formulated as under:

    “Whether the document Ex.P6 required registration as by way of said document the interest in immovable property worth more than Rs.100/was transferred in favour of the plaintiff?”

2. Briefly stated, the suit was filed by the predecessor of the appellants herein Harbans Singh, son of Niranjan Singh, resident of Sangrur, Punjab against his real brothers Mohan Singh (original defendant No. 1) and Sohan Singh (original defendant No. 2) for a declaration that he was the exclusive owner in respect of land admeasuring 11 kanals 17 marlas comprising khasra Nos. 935/1 and 935/2 situated at Mohalla Road and other properties referred to in the Schedule. He asserted that there was a family settlement with the intervention of respectable persons and family members,


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