b B Raju
(Querist) 12 October 2017
This query is : Resolved
In respect of a properly all the family members executed a memorandum of understanding and divided the property in the year 2001and the same was notarised. Recently in a civil despute a question was raised abouts its authenticity since it was not registered. Learned advocates please advise is registration is necessary for memorandum of understanding between family members even through it was notarised.
(Expert) 13 October 2017
A mere Memorandum of understanding is not compulsorily registrable and stamped.,. it is well settled that registration would be necessary only if the terms of the family arrangement are reduced into writing. Here also, a distinction should be made between a document containing the terms and recitals of a family arrangement made under the document and a mere memorandum prepared after the family arrangement had already been made either for the purpose of the record or for information of the court for making necessary mutation. In such a case memorandum itself does not create or extinguish any rights in immovable properties and therefore does not fall within the mischief of section 17 of the Registration Act and is, therefore not compulsorily registrable –Kale v. Dy. Director AIR 1976 SC 807..A mere Memorandum of understanding recording what has been agreed upon among the related parties doesn't attract stamp duty and Registration. Please click the following link for further information on this issue. http://www.itatonline.org/articles_new/the-entire-law-relating-to-family-settlements-explained/