SC ruling makes family property division easier; Know the latest verdict

New Delhi: The Supreme Court has delivered a significant ruling in a significant case involving the division of family property. The apex court clarified that even an unregistered family agreement will be fully valid as proof of division. However, the court also stated that an unregistered family agreement cannot establish title to the property, but will be admissible as evidence. Lower Courts Misapplied the Law The Supreme Court bench, comprising Justices Vikram Nath, Sandeep Mehta, and N.V. Anjaneya, set aside the decisions of the Karnataka High Court and the trial court. The lower courts had considered the property as joint family property and ordered it to be divided equally among all heirs. The court stated that this was a misuse of the law. The court also held that registered relinquishment deeds are valid in themselves and require no additional conditions for their implementation. While a registered family agreement cannot establish title, it will be recognized as evidence. Importance of Family Settlements The Supreme Court emphasized the need to encourage family settlements. A family settlement is a written or oral agreement that provides for the division or settlement of property, such as ancestral or joint property, between family members. Its purpose is to maintain peace within the family and avoid future property disputes. The Court stated that family settlements are an effective way to maintain family unity and avoid legal hassles. These agreements are made with the consent of all members, increasing their legal significance, whether registered or not. Supreme Court Recognized Evidence as Important The Supreme Court also clarified in its decision that unregistered family settlements will not be considered title deeds but will be admissible as strong evidence in court. This decision is particularly comforting for families who have entered into agreements to divide family property but have not registered them. This decision makes it clear that the importance of family property settlements is immense. The Court has corrected the misinterpretation of lower courts, elevating the importance of family settlements and providing guidance for all parties involved.