• Property under family settlement

The family settlement agreement is done in 1996 Mumbai and unregistered. Parties (A),(B),(C) are involved and hold some property owned individually.(B) and (C) have the property owned by their names and some property maintioned in the family settlement are owned by both (B) and (C) and they sold them without informing (A). (C) has done individual settlement in 2007 with (A) done on stamp paper that he doesnt have any rights ,got his share and admits that all previously done agreement are abolished. Even then he (C) and (B) claims that they should get share in the property of (A) .The property that both (B) and (C) are claiming for share are bought by (A) only (Mumbai),single owner in 1986. The property is shop and A is doing business on the same property from 1988 till date ,paying all the taxes. The settlement in writting has been done with (A) and (C) and not with (B). My question is 
1)What will happen if A transfers his property to his wife?Is (A) is able to transfer the it?

2)Will (A) get full right on the property ?

3)What about business status of the (A). Will (B) and (C) can get share in the merchandise or machinery owned by (A)?
Asked 1 year ago in Family Law from Mumbai, Maharashtra
Religion: Hindu
Hi, As the property is the joint family property so unregistered settlement agreement is not valid in law and it has value in the eyes of law.

2. Without proper partition no one has valid title to alienate the same.
Pradeep Bharathipura
Advocate, Bangalore
4261 Answers
161 Consultations

4.3 on 5.0

An unregistered family settlement done in 1996 involving A, B & C, and their respective properties, as per which A, B & C have common interest and shares in properties mentioned therein.
Thereafter some time later B & C sold off their properties without the consent or knowledge of A, and have eaten away the profits.
Now B & C are claiming equal rights in the shop property owned by A. Question is not how he bought the property but what kind of settlement was agreed to by A. If A has voluntarily agreed to give equal share to B & C then he must do so, if he tries to alienate or change the ownership it is illegal.
In respect of properties owned by B & C how was the settlement agreed to is to be looked into, if B & C had agreed to give equal share to A, then A can file a suit and recover his part of the share in the sale proceeds from both B & C.
Till the cancellation of the Family settlement deed, A will not get absolute rights on the shop property. Shop property if it comprises of merchandise and machinery both B & C will get equal share in it.
Kiran N. Murthy
Advocate, Bangalore
859 Answers
66 Consultations

5.0 on 5.0

1) if A has bought property from his own funds he is absolute owner and can transfer it in favour of his wife by Gift deed 

2) B and  C will not get share in machinery owned by A if A has bought it out of his own funds 
Ajay Sethi
Advocate, Mumbai
31142 Answers
1707 Consultations

5.0 on 5.0

1.  Since this A's self acquired property, he can very well transfer this property to anyone of his choice including his wife by executing a registered gift deed on her name.  Even without transfer neither B nor C had any rights in the A's self acquired property.  If they file any suit it shall not maintainable in court.

2.  Yes, A has full right in the property which was bought by himself as his own property.

3.  B and C if business partners they may get their share in the business as per the conditions of partnership as agreed by all.
T Kalaiselvan
Advocate, Vellore
21320 Answers
208 Consultations

5.0 on 5.0

1. The property of which A is the absolute owner can be transferred by him to anyone he desires.
2. The family settlement had to be mandatorily registered. Unless the separate property of A was made part of a registered family settlement or partition deed B and C have no right to claim a share therein. 
3. B and C cannot get a share in the movable assets of A.
Ashish Davessar
Advocate, Jaipur
20371 Answers
537 Consultations

5.0 on 5.0

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