Will the wrong statement in the settlement deed can be considered as serious injury to my relative by court, and will the court cancel the entire settlement deed (or) only the specific part (wrong statement part) of the document? The "wrong clause" is the only evidence that my relative has to show it to court for "coercion and fraud" action of his brother.
The statement whether wrong or right will not be decided by the court on its own, it depends on how the parties convince the court about its righteousness.
In fact the referred wrong statement in the settlement deed is not at all going to affect your relative at his moment because it has got nothing to do with his own 50% share in the property.
He is still the absolute owner of his own share in the property and he can very well sell or transfer or execute a settlement or gift deed of the same to his daughters.
There is no clause restricting him to do so.
In fact the words like no legal heirs cannot be called as coercion and fraud, your relative should have actually objected to that then and there itself whereas he slept over the subject issue and now he claims innocence about it. The law will not dance to his tunes.
2) Though this case will be declaration suit, this is to get back the title of immovable property, So I think it is 12 years time limit as per article 64 of "Limitation Act 1963" (Part 5 - Suits relating to immovable property).
If the judge in the particular court feels that it is only 3 years time limit, will he/she cancel my relative's petition at the starting of the hearing by saying that the pray is not acceptable? (here, I can see two different opinion from experts). If it only 3 years then there is no meaning in filing a civil suite as it may not be accepted by court.
By the above it appears you understand the law better than the lawyers, so you may proceed as per your understanding and proposed desire.
3) One thing I can clearly understand that my relative/his daughters have 50% share without any doubt. The current thinking of my relative is that due to the wrong statement added by his brother, my relative is thinking that he has been cheated by his brother.
So, if possible, he wants to cancel the entire document by showing the wrong clause in the settlement deed to the court. In addition to the illegal action, after the registration of the document, his brother has broken the joint family and he has moved to another city and he does not care about my relative anymore, but the settlement deed says that it is due to love & affection towards his brother the 50% share is given to him.
There appears no condition attached to the settlement deed hence it may not be possible to cancel or revoke the settlement deed which has already been acted upon by the beneficiary.
4) If it is not possible to cancel the entire settlement deed due to the wrong clause in the document, then why should my relative file civil suite?
In my opinion the wordings in he settlement deed namely " he does not have any legal heir after him" do not make any sense to term it as wrong clause or wrong statement, it is an error and it can be rectified, thus this will render the settlement deed as null and void.
If your relative feels that this is wrong then he should understand the law that the question of legal heirs will come only after the lifetime of an individual and moreover if this was the only thing which is a cause of concern then I opine that this is not a wrong statement or clause that will change the meaning of the settlement deed,however this error can be rectified by executing a fresh registered rectification deed on this.
There may not be a necessity to file a declaration suit.
5) I asked my relative's daughters to get legal heir certificate from government, so that they can sell father's 50% share later, and this certificate can be shown as a proof as well in the court if they want to file civil suit.
If your relative is living then she cannot get a legal heirship certificate.