• Settlement deed done and registered on 1-Jun-2010. Same got cancelled and registered on 20-Jun-2010

Settlement deed done between Father and Son on 1-Jun-2010 and it got Registered and settlement deed does not contains any condition and 2 peoples singed (one of them is Father Daughter). Father got assets from ancestor property and patta/chiita was with Father name. Same Settlement deed got cancelled and registered on 20-Jun-2010 by Father alone without any reason mentioned.
After cancellation, Son got the patta transferred to his name and then sold almost all the property mentioned in the Settlement deed and all are got registered. For one of the property, I am the 4th person who bought that properly and registered (before me there are 3 peoples bought (Sale Deed) that property and registered). When i go for sale, Sub-Register told that Settlement deed got cancelled so get the No Objection Certificate (NOC) from all the Father successors. Please let know Settlement deed cancellation is still valid? Let know whether i can get positive order from court?
Asked 2 years ago in Property Law
Religion: Christian

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9 Answers

Settlement deed cannot be cancelled unilaterally 

 

you need court orders to set aside settlement deed 

 

you have to  file declaratory suit that you are absolute owner of property as full consideration paid by you 

 

3) also seek orders to set aside cancellation of settlement deed .maje father and son parties to the suit 

Ajay Sethi
Advocate, Mumbai
100092 Answers
8174 Consultations

The settlement deed has been cancelled by a registered cancellation deed.

Therefore the transfer of property by the settlement deed becomes invalid due to the cancellation deed.

This problem arose due to your mistake of not obtaining a proper legal opinion from an advocate about the property before purchasing it. 

Therefore you may follow the advise of the Registrar and get it regularised. 

T Kalaiselvan
Advocate, Vellore
90295 Answers
2513 Consultations

Dear client,

In Indian law, the cancellation of a settlement deed needs to be legally valid and should be done in accordance with the law. If the settlement deed cancellation by the father was executed properly, it might be considered legally valid. However, the lack of a reason mentioned for the cancellation might raise questions. The subsequent actions, such as the transfer of property and sale by the son after the cancellation of the settlement deed, could also be subject to scrutiny. If the properties were sold based on the canceled settlement deed and there are subsequent buyers (like yourself) involved, the legality of these transactions may be affected if the cancellation of the settlement deed is found to be invalid or illegal.

Regarding your situation as the fourth buyer of one of the properties, the Sub-Registrar's requirement for a No Objection Certificate (NOC) from all successors of the father indicates that they want confirmation from all individuals who could potentially claim rights or interests in the property.

To resolve this matter, you might need to:

1. Confirm the legality of the settlement deed cancellation with a lawyer.
2. Check if the subsequent transactions, including the transfer of property and sale, were conducted legally and if the cancellation affected their validity.
3. Obtain the necessary NOCs or take legal action to address any disputes over the property.

Your chances of getting a positive order from the court would depend on various factors, including the validity of the cancellation, the subsequent transactions, and any legal claims made by other successors or stakeholders in the property.

You can reach out to us for further assistance

Anik Miu
Advocate, Bangalore
11114 Answers
125 Consultations

- Since, the said Settlement deed is registered , then it can be cancelled without obtaining the consent of all the parties therein mentioned in the settlement deed. 

- Hence, the father cannot cancel the said settlement deed itself , and the said cancellation is not valid 

Mohammed Shahzad
Advocate, Delhi
15881 Answers
244 Consultations

You require NOC of all legal heirs 

 

2) merely because majority of legal heirs are signing is not sufficient 

 

3) if one has not given NOC you  don’t have clear and marketable title to property 

Ajay Sethi
Advocate, Mumbai
100092 Answers
8174 Consultations

The registrar is right in insisting on NOC from all the legal heirs of the father because father had cancelled the registered settlement deed unilaterally even though the cancellation deed was executed by a registered document.

Therefore if you have to move on any further you may have to comply with the procedures of law.

The errors to follow the procedures of law in the past cannot be claimed as an excuse at this stage.

It appears that you have purchased the proeprty without obtaining proper legal opinion from an experienced lawyer hence now you are facing  the hardships

T Kalaiselvan
Advocate, Vellore
90295 Answers
2513 Consultations

- As per law, the consent and presence of 5 legal heirs are required for the registration 

- However, the 4 legal heirs have their right to sell their share in the property without taking the consent of 5th one. 

- Hence, you will have right to sell remaining property which you will get from 4 legal heirs. 

Mohammed Shahzad
Advocate, Delhi
15881 Answers
244 Consultations

Dear Client,

Obtaining NOCs from the majority of legal heirs may be sufficient for certain transactions. Every legal heir normally owns a portion of the property, and any legal transactions involving the property frequently need their approval.  Clear title transfer to the buyer may be complicated if one legal heir fails to produce a NOC. The legal heir who is not providing the NOC may have rights to challenge the transaction or claim their share in the property at a later date. If you have obtained NOCs from the majority of legal heirs, you might be able to proceed with the sale of the property you obtained from them. However, the property with the non-consenting heir's share may be challenging to sell without their cooperation.

Anik Miu
Advocate, Bangalore
11114 Answers
125 Consultations

Yes you can sell the extent of your ownership but possession of property in not your owners may pose problem

Prashant Nayak
Advocate, Mumbai
34753 Answers
252 Consultations

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