2007 (4) TMI 749 - SC - Indian Laws

Enforceable family settlement agreement upheld by Supreme Court emphasizing property division and partition rules

The Supreme Court affirmed the High Court's decision regarding a family settlement agreement dispute. The agreement, which was not registered and lacked ... - Issues involved: The issues involved in the judgment are the validity of a family settlement agreement, the requirement of registration for such an agreement, the effect of non-payment under the agreement, and the necessity of a partition by metes and bounds.Family Settlement Agreement Validity: The suit involved co-owners of a property who had a family settlement agreement, where one defendant did not sign. The agreement outlined the division of property and financial obligations among the co-owners. The plaintiffs claimed their share under this agreement.Registration Requirement: The High Court held that the family settlement agreement was inadmissible in law as it was not registered. It was also noted that the agreement could not be acted upon as not all parties were signatories to it.Effect of Non-Payment: Despite the family settlement agreement, the appellant did not pay the agreed sum to the respondents. The trial court decreed the suit, but the High Court reversed this decision, stating that the agreement had not been fully acted upon.Partition by Metes and Bounds: The Supreme Court upheld the High Court's decision, emphasizing that a complete partition of the joint family property by metes and bounds had not taken place due to the non-payment under the family settlement agreement. The plaintiffs were deemed entitled to their share as per the agreement.Conclusion: The Supreme Court dismissed the appeal, affirming the High Court's decision that the plaintiffs were entitled to their share under the family settlement agreement. The court highlighted the importance of fulfilling the terms of such agreements and the necessity of a proper partition to effectuate property division.