• Out of court settlement through MoU

Hello sir,

I am settling a property dispute through an MoU which states that one floor of the property shall be given to other party via gift deed in return of closure of case. The other party will put an application to withdraw the case well before the next date but wants me to sign the MoU and gift deed before the hearing of application in court.

1) Our hearing is in October, they want the case to end this month only. Can they withdraw the case well before the next hearing date by way of application? 

2) Should i go ahead and sign the MoU and Gift deed before the hearing or should i sign on gift deed after the hearing after at least getting a verbal order from the judge if not written as i have been told it takes at most a week to come?

3) What is the significance of signing a gift deed but registering it later in future, as i've been asked to sign it beforehand but register only when the case has been withdrawn successfully?

Thank you
Asked 7 months ago in Property Law from New Delhi, Delhi
Religion: Hindu
1) you can have the papers produced before court and case can be with drawn 

2) sign the MOU on the date fixed for hearing . gift deed should be signed  after consent terms or MOU is filed in court 

3) registration can be done within period of 4 months of execution of gift deed . 
Ajay Sethi
Advocate, Mumbai
27146 Answers
1471 Consultations
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1. An application for preponement of the next hearing can be filed, and if it is allowed by the court, the suit can be withdrawn by the plaintiff.

2. The other party wants to play safe by requiring the execution of the gift deed before the withdrawal of the case so that you do not back out of your promise subsequently. 

3. A signed gift deed has no legal validity if it is not registered. Unless the gift deed is registered it is waste paper. 
Ashish Davessar
Advocate, Jaipur
19555 Answers
506 Consultations
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Dear Concerned,

A case can be withdrawn by giving application under section 151 to the concerned court. Do mention in the application the reason of withdrawal as settlement. Also, your lawyer should mention  re filling of case in case settlement fails. 
Signing of gift deed before withdrawal of case seems to be a tricky thing, assuming if the gift deed is done and case is not withdrawn you will be in a cash 22 situation. Hence, consider wisely.

Best of Luck.. Stay Blessed
Atulay Nehra
Advocate, Noida
677 Answers
20 Consultations
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1.  Yes they can file an advance hearing petition to hear the case in advance for the reasons stated therein.


2.  It depends on the credibility of the understanding arrived at.  If you trust the other party yo cn enter into the MOU and can execute the gift deed at a later stage once the case is withdrawn.



3.  This is called as execution.  No doubt it will be valid only after the same is registered by paying applicable stamp duty and the registration charges. 
T Kalaiselvan
Advocate, Vellore
17280 Answers
165 Consultations
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