Family settlement deed

Guest (Querist) 19 May 2012 This query is : Resolved
Is the Municipality bound to accept a Family Settlement Deed? If so, whether it should be registered or may be unregistered also? Do the Courts aceept un-registered family settlement deed for the purpose of evidence?

C.A.A.K.Maitra

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ashutosh mishra (Expert) 20 May 2012
A family arrangement can be made orally. It need not be necessarily reduced to writing. If it is implemented in oral form, the question of stamping or registration does not arise. It is legally valid and recognised. However, all the critical factors of a valid family arrangement would be applied to find out whether such arrangement would be valid and fair. The circumstances have to be looked into.

A family arrangement requires to be duly stamped and registered - This depends on the manner in which the document is made. Generally, if it is a memorandum recording a past transaction or is a record or a chit or a list merely reducing the earlier oral family arrangement, then there may not be any necessity for payment of stamp duty and registration charges as this is not a document of title.

Otherwise, if it is intended to be a document of title containing declarations of rights of parties, then it has to be properly stamped and registered. This is the most difficult and controversial part of family arrangements.