There are 4 Coparcerner in a HUF consisting of Karta, his wife , a major & married son and a married daughter. HUF have immovable property and on going business conern. All member decided to go for family settlement, by meets and bonds by way of regd. settlement deed .. In settlement deed the karta and his wife want to retain their life interest in immovable property and after the death son will get absolute right in the immovable property.As well as on going business concern, karta wants to keep life interest and after his death it will go to his son. Now my querry is :
1. Whether it will treat as a full partition u/s 171 of I T Act ?
02 December 2010
Yes. Partition in he manner proposed is valid. But the only condition is that there must be consensus amongst he members at the time of partition, The Supreme Court has ruled in the case of Ghetty Chetty that an un equal partition is legally valid. But the condition is that all the assets must be divided. At the same time the basic requisite that provision should be made for the maintenance and marriage expenses of he female members of he family ought to be followed.