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Property Lawyer: Family Arrangements do not require any registration; SC.

Supreme Court of India

Justice M R Shah

It was held by the Supreme Court in the case titled as "Thulasidhara and Another versus Narayanappa and others" that the question framed by the high court in second appeal was not the substantial question of law. The Supreme Court has held that the substantial question of law is - when relevant or material evidence is not considered, which if considered, would have led to an opposite conclusion. Secondly, when a finding is arrived by relying upon inadmissible evidence, if omitted, opposite conclusion was possible.

In the said case, in a suit filed by the plaintiff, for a declaration, on the basis of the registered sale deed, it was held that it is always open for the defendant, who is stranger to the sale deed, to raise a plea that the Sale Deed was void, fictitious, collusive or not intended to be acted upon or not binding upon the defendant.

It was further held that family arrangements do not require any registration, containing list of properties partitioned, such family settlement, albeit not registered, would operate as a complete estoppel against the parties to such a family settlement from wriggle out of the terms of the settlement. The High Court order in second appeal was set aside and the order of the trial court and first appellate Court restored, by which the suit was dismissed.

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