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Kale & others vs deputy director of consolidation … on 21 january,1976

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Nishita Mehta a student at Kirit P Mehta School of Law,3rd Semester, an intern under

Legal Vidhiya

Kale & others vs deputy director of consolidation … on 21 january,1976

Case NameKale & others vs deputy director of consolidation
EquivalentCitation1976 AIR 807, 1976 SCC (3) 119
Date OfJudgement21/01/1976
Case Type Special Leave Appeal 
PetitionerKALE & OTHERS
RespondentsDEPUTY DIRECTOR OF CONSOLIDATION ORS
BenchFAZAL ALI, SYED MURTAZA KRISHNA IYER, V.R. SARKARIA, RANJIT SINGH
Statutes ReferredFamily arrangement-Its object and purpose-Principle governing-if should be registered-Oral arrangement-If permitted-If would operate as an estoppel Registration Act. s. 17(1)(b)-Family arrangement if should be compulsorily registered.

Facts

Arguments 

Arguments by the Petitioner 

Arguments by the Respondents.

The following arguments were made before us by Mr. Sharma, learned counsel representing the respondents: 

Judgement 

A family settlement or arrangement brings harmony and goodwill to a family descended from a common ancestor or close relative by resolving their conflicting claims or disputed titles. Even though they weren’t meant to be compromises, family arrangements are regulated by a unique equity and will be upheld if made honestly. Instead, they came from all parties misinterpreting their rights or the conditions that influence them.

The agreement protects the family against protracted legal challenges or continuous disagreements that weaken family bonds and promote anger and animosity among its various members. It promotes social justice by redistributing resources. Thus, family is vast. It’s not restricted to property owners.

Courts favour families. Ignore technical or irrelevant difficulties. Estoppel prevents case reopening.

Families can make arrangements orally without registering. Registration is only needed if the family arrangement is written. The terms and recitals of a family arrangement created pursuant to the agreement should be distinguished from a simple memorandum prepared afterward for the record or for the court to make required adjustments. The memorandum does not issue or renounce real property rights, hence it does not contravene Section 17(2) of the Registration Act and does not need to be registered.

Thus, a document summarising the agreement did not need to be registered.

Thus, a memorandum of an earlier family arrangement filed with the court for name change information does not need to be registered and can be used as evidence of the arrangement. It is definitive and enforceable.

“Even if a family arrangement that needed to be registered wasn’t, it would still function as a full estoppel against the parties who benefited.”To permanently resolve any disputes, we’ll consider the parties’ family arrangements before discussing their claims. A family settlement or arrangement brings harmony and goodwill to a family descended from a common ancestor or close relative by resolving their conflicting claims or disputed titles.

If constructed honestly, family arrangements are governed by a unique equity that applies only to them. Kerr’s essential findings about the family structure on page 364 of his valuable work Kerr on Fraud can be described as follows:

Family compromises differ from stranger compromises. Family agreements are regulated by a unique equity and will be honoured if formed honestly, even if they were not intended to be a compromise. Instead, all parties made mistakes concerning their rights and the conditions that influence them.

A family arrangement is an agreement between family members to benefit the family by compromising disputed or questionable rights, protecting family assets, preserving peace and security, preventing litigation, or preserving honour.

The agreement is usually included in a “family arrangement” deed. Long-term dealings may imply the agreement.

Family ties follow different standards than stranger contacts. When determining the rights of parties under family arrangements or claims to disturb such arrangements, the court takes the broadest possible view and considers factors that would not be considered in transactions between non-family members. Certain situations invalidate such transactions between strangers, but familial commitments are not.

Conclusion 

The Supreme Court outlined the fundamental characteristics of family arrangements, including the requirement that oral agreements need not be registered, in the seminal case Kale v. Deputy Director of Consolidation. In regards to written family agreements, the Supreme Court made a distinction between memoranda that are only for recording or amending reasons and papers that embody the contents of a family agreement, holding that the former does not require registration. This idea is reiterated in the current judgement. In a different instance, the Supreme Court likewise decided that regardless of registration, a written record of a family settlement or arrangement might be used to support the agreement and the behaviour of the parties.

Family settlements are frequently used by relatives to settle disputed titles or competing claims. It is accepted practices that these agreements should be governed by a unique contract that, if formed honestly, should be upheld. This idea is strengthened by the Supreme Court’s ruling in the current case. 

Family settlements have historically been a helpful tool for resolving family conflicts and inheritance planning. Family settlement agreements should be properly documented in order to accomplish these goals and prevent litigation over the legality of family settlements. To ascertain if the document in question has to be registered, a thorough examination of the agreement’s terms and conditions is required.

written by NISHITA MEHTA intern under legal vidhiya.

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