• Compromise between parties

Hi Lawyers,

There is a case regarding apportionment of amount under section 30 of Land Acquisition Act between me and my father. To avoid litigation Both myself and my father have entered into a mutual compromise and submitted that compromise in the court under which-
A) Me and my father will be the joint claimant of the amount with equal share .
B) The amount will be deposited in a joint account in the name of myself and my father. We both have opened a joint account specifically for this purpose only.


Since myself and my father have entered into compromise and given the Joint Bank account details and agreed that amount be deposited in the joint account ,My question is: 

1) Based on our mutual compromise, the court will consider our compromise as the base and will deposit the amount in the joint account ONLY as agreed by me and my father.

 2)is there any possibility/chance that court will say that amount be deposited half half into both of our individual accounts and not in the joint account ??

3) Will there be a compromise decree passed in this case .

4)In future in the case of enhancement (section 18), will this compromise or compromise decree will be used and everything that is mentioned in our compromise will be followed??
Asked 2 years ago in Property Law
Religion: Hindu

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12 Answers

1. Yes

2. No if the same is mutual compromise

3 . Yes

4  yes

Prashant Nayak
Advocate, Mumbai
31807 Answers
176 Consultations

4.1 on 5.0

There is dispute as to apportionment of compensation awarded against acquisition of land and the dispute is referred by Collector to Court. A compromise is reached between parties to seek deposit of awarded compensation in joint account. Submit a compromise memo in the Court, a compromised decree will be passed in terms of compromise reached by parties. Court has not power to deposit the amount in separate accounts. Provided all parties before agree for compromise.


The proportion of claim amount  compromise decree to share awarded compensation will continue to be followed in case any enhancement  is claimed and granted. But there is strict time line for claiming enhancement, follow that.

Ravi Shinde
Advocate, Hyderabad
4041 Answers
42 Consultations

5.0 on 5.0

The court will direct the deposit of the said amount to the account owned by both jointly or as per the terms of the compromise agreement arrived between both.

The court  will pass a compromise decree on the basis of the petition filed by the parties to the suit seeking compromise decree based on the terms of  compromise arrived between both the parties. 

The enhanced compensation amount also would be paid in line with the compromise terms and conditions provided there is a mention about the future enhancement compensation amount in the compromise agreement

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

1) court would pass consent decree based on compromise 

 

2) it would be deposited in joint account as agreed between the parties 

Ajay Sethi
Advocate, Mumbai
94523 Answers
7485 Consultations

5.0 on 5.0

there is no difficulty in deposit of the amount in a joint account if both the claimants have mutually agreed for the same

i dont think the Court will have any problem, subject to any objection that may be taken by the authority which would deposit the amount

in case of enhancement also and its apportionment, the deposit of that amount in the joint account can be stated in the compromise terms itself

if you have already filed the compromise terms then you for the above you can file a supplementary compromise terms in the Court 

Yusuf Rampurawala
Advocate, Mumbai
7485 Answers
79 Consultations

5.0 on 5.0

Dear client, 

The Court will say to go ahead with the compromise unless it is invalid. So, unless the parties ask for a half deposit without a joint account, the court will not pass such a decree. Yes, there will be a compromise decree passed in this case on the basis of parties and for enhancement, this compromise decree will be used in the future. 

Thank you. 

Anik Miu
Advocate, Bangalore
8742 Answers
109 Consultations

4.7 on 5.0

If there is no decree passed till date make application in court to take revised consent terms on record 

court can pass consent decree based on revised consent terms 

Ajay Sethi
Advocate, Mumbai
94523 Answers
7485 Consultations

5.0 on 5.0

In this case the compensation amount is agreed to be paid jointly to the father and son in their joint account 

Then using this amount a property is to be purchased in joint names of son and mother 

So that means the father's share in the compensation amount will be used to purchase a property jointly in names of son and mother. Essentially instead of the father, the mother will be made a co owner 

This is a benami transaction by a husband in favour of his wife, which is permissible 

So if looked at from that point of view, the funds being of the father which were used to buy a property jointly with the son, it is the father who would be the true owner of the 50% share in the property 

I dont know who other legal heirs are there of your parents aside from you 

So if the other legal heirs are willing to give up their share in the property when the parents would die, so that the property would revert to you alone, I would suggest to go for a family arrangement deed between parents and children and have the same registered 

There is no prohibition or restrictions against filing supplementary compromise terms also. I would suggest that the other legal heirs of the parents also be made parties in the proceedings by consent so that they can give their consent to the arrangement as contemplated 

Yusuf Rampurawala
Advocate, Mumbai
7485 Answers
79 Consultations

5.0 on 5.0

- Yes, the court may pass a decree on the ground of compromise between the parties. 

- Further, the court can accept the clauses mentioned in the compromise deed. 

- You can move an application before the said court for amending the compromise deed , if the court has not decreed the suit.

Mohammed Shahzad
Advocate, Delhi
13105 Answers
195 Consultations

5.0 on 5.0

Once the property purchased on joint names along with your mother, she becomes an absolute owner of her share in that property , therefore it is she who has to decide about the disposal of her share in the property either to you alone or to her other legal heirs also, therefore this proposed condition may not be maintainable.

The court would not entertain any supplementary compromise settlement once a compromise agreement has already been filed and the decree is drawn by the court accordingly.

Therefore you have to arrange for this condition by an agreement with your mother alone to which she has to either she can write a Will to your name or to transfer her share in the property to your name subsequently by a registered settlement deed. 

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

If both of you mutually file its possible

Prashant Nayak
Advocate, Mumbai
31807 Answers
176 Consultations

4.1 on 5.0

Dear Client, 

As the immovable properties from the amount are jointly owned by you and your mother, after her death, the property will be completely in your name so, the question of other legal heirs claiming that properties does not arise.  

If you like this response, then please rate us. Thank you. 

Anik Miu
Advocate, Bangalore
8742 Answers
109 Consultations

4.7 on 5.0

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