Technologist (Business owner) 04 August 2010

Is there a need to Register Family Arrangement

May the learned lawyers answer a question I have.

My mother had made a family arrangement to assign her property to her children after her time. The arrangement was signed by all the children and by her as well. A copy was sent to the city commissioner at that time. The family arrangement is not registered. I was wondering whether there is a need to register Family Arrangement for its validity as one of my brothers says it is invalid because it was not registered. Kindly, site the relevant clauses in the Indian Registration Act where it says, there is no need to register a Family Arrangement.

Thank you in anticipation.

Reply Follow

6 Replies

Arvind Singh Chauhan (advocate) 05 August 2010

In M. Venkataramana Hebbar (D) by LRS V/S M. Rajgopal Hebbar & others Supreme Court held on 05-04-2007 That –

Family settlement not required to be compulsorily registered in terms of Sec-17 of registration Act.

1 Like

Adv. G.Narayan ( Advocate & Legal Consultant) 05 August 2010

No , A Deed of Family Arrangement need not compulsory be required to registered U/S Sec. 17 of The Regitration Act. Supreme Court settled this in quite a few judgements in the recent past . Citations - 2007 (6) SCC401, 2006 (1) SCC 148, 1976 (3) SCC 119 etc.

1 Like

Technologist (Business owner) 05 August 2010

Thank you very much to Advocate Arvind and Advocate G.Narayan for their comments. The family arrangement is on Stamed paper. It is in the form of mortgage which reads as follows:

Memorandum that on this day -----------(my mother's name) , w/o(my father's name) of (Town name) has deposited with (my name), son of (my father's name) of (town name) the document of title mentioned in schedule here to as security for the repayment of the sum of Rs.----------- advanced by the said (my name) to be the said (my mother's name) with interest for the same at the rate of of Rs.---- percent per annum from the date of these presents

The Schedule above referred to:

(Schedule)

In witness whereof I have hereunto set my hand this the ----- day of (month), year.

Signed, ( my mother's name ) (Signature)

in presence of

(my father's name)

Adendum

The mortgagor above named confirms further by these presents the handling over of possession of the properties mentioned in the schedule above referred to (my name) subject to the liability of the mortgagee in possession to pay the Corporation taxes and other dues in respect of the said properties by him alone without recourse to the above named mortgagor during the subsistence of the of the above mortgage.

In witness whereof I have hereunto set my hand this the (date)

Signature of my mother.

Can you please explain the legal jargon of words in the memorandum ? Thanks.

One of my brothers is saying that this is not valid as it is not registered and forcing my mom to return the advanced money to nullify it. I said, I will not accept it and there will not be any receipt for such payment for this coercion. I also said that one cannot buy a house by sending a check to someone's address upon sight and liking. It has to be agreed on and tarnsactions must be properly done without intimidaation and coersion. Please advise me on these matters as well.

Adv. G.Narayan ( Advocate & Legal Consultant) 06 August 2010

Dear Gentleman!

Your deed is a mortgage deed for taking advance against the property mortgaged to you as security for repayment. If your mother is willing to repay you the advance taken alongwith interest as specified in the mortgage deed, then she has full right to take back the mortgaged property from you. This a simple mortgage deed and not a deed of family arrangement of other sort.

1 Like

Technologist (Business owner) 06 August 2010

Thanks for the advice. I understand what you had mentioned but my mother is not doing it at her will. She is being coerced by a brother of mine who wanted my share of property. What if I refuse to accept the advance?

The tax was paid for more than 20 years in my name. Besides this memorandum, there is another agreement which reads as follows.

This indenture made this the (date) between (my mother's name) w/o Sri (my father's name) on the 1st part (myself and my brothers ) of the above named ( my mother and father's name) on the 2^nd, 3^rd and 4^th part respectively witnesseth as follows:

Whereas Nos. 1 to 4 had entered into a transaction by way of equitable mortgage by deposit on title deed in respect of the A, B, C and D schedule properties on (date)

Whereas Nos.1 to 4 had since then entered into an oral family arrangement on the ( date) to maintain peace, understanding and harmony among the as members of a family and by such family arrangement, the properties described in ABC and D schedules herein had been allotted respectively to Nos. 1 to 4, they having in the meantime applied for mutation of names in their favors to the local authority, viz. The Municipal Corporation of (city).

Whereas one item of the property described in the D schedule hereto had been gifted to Nos.1 to 4 by document No. (number) of (year) of the joint Sub Registry Office, (city) to be enjoyed as tavazi property and now is being held by them in that capacity.

Whereas difference of opinion are likely to arise among Nos1 to 4 on the mode of agreement and administration of the said schedule property. Nos. 2 to 4 do therefore hereby authorise No.1 among them (my mother's name) the mother of Nos. 2 to 4 , to keep exclusive possession of the D schedule property to collect the income therefrom to maintain the same and to utilize the surplus proceed for the benefit of Nos. 1 to 4. to which no.1 has hereby agreed and witness thereof Nos. 1 to 4 have signed this (date) at ( city name )

Signatures.

Kindly advice on the above matter. One of my brother says the above agreement is invalid as well and forcing my mother give the advanced money to me to relinquish my holding on a property he is interested in.

Thanks so much.