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It was opined:
8.We are, however, not oblivious of the decisions of this Court and
other High Courts that illegality of a contract need not be pleaded. But,
when a contract is said to be voidable by reason of any coercion,
misrepresentation or fraud, the particulars thereof are required to be
pleaded.
In Chief Engineer, M.S.E.B. and Another v. Suresh Raghunath Bhokare
[(2005) 10 SCC 465], the law is stated in the following terms:
“…The Industrial Court after perusing the pleadings and the notice
issued to the respondent came to the conclusion that the alleged
misrepresentation which is now said to be a fraud was not specifically
pleaded or proved. In the show-cause notice, no basis was laid to show
what is the nature of fraud that was being attributed to the appellant. No
particulars of the alleged fraud were given and the said pleadings did not
even contain any allegation as to how the appellant was responsible for
sending the so-called fraudulent proposal or what role he had to play in
such proposal being sent...”
at and a decree has been passed on the premise that the said
compromise was lawful, we are of the opinion that the same cannot be
permitted to be reopened only on the question as to whether the
properties were joint properties or the self-acquired property of
Sreenivasulu. The said decision, therefore, in our opinion cannot be said
to have any application whatsoever.
11.Our attention has also been drawn to essentials of ‘release’ from the
said treatise, which are as under: 44 “(i) Full recitals of the origin of the
claim, which form the most important part; (ii) knowledge of the releaser
about the claim, intended to be released; (iii) words and expressions
sufficiently clear to convey the intention of the releaser to discharge the
right or the claim.
In Smt. Manali Singhal and another v. Ravi Singhal and others [AIR
1999 Delhi 156], it was held:
“20. Learned counsel for the defendants has then argued that the
impugned settlement is without any consideration. Hence the same is hit
by S. 25 of the Contract Act. The contention of the learned counsel may
be an ingenious one but can be brushed aside without any difficulty.
Parties more often than not settle their disputes amongst themselves
without the assistance of 45 the Court in order to give quietus to their
disputes once and for all. The underlying idea while doing so is to bring
an era of peace and harmony into the family and to put an end to the
discord, disharmony, acrimony and bickering. Thus the consideration in
such type of settlements is love and affection, peace and harmony and
satisfaction to flow therefrom.
13. We would proceed on the basis that the consideration of rupee one
shown in the deed of partition is no consideration in the eye of law.
However, the question is as to whether a partition deed would be
violative of Section 25 of the Indian Contract Act for want of
consideration. It is per se not a void document. No such plea was raised.
No issue has been framed. No evidence has been adduced. No ground
has been taken even in the memo of appeal before the High Court. The
validity of the partition deed (Ex. D-6) by reference to the recitals of the
release of shares by the daughters of Sreenivasulu has not been
questioned.
17. Suit for partition filed three years after the minor
coparcener attaining majority merely pleading that
alienation of ancestral properties by karta is not binding on
him is barred by law of limitation. Karnataka High Court.
part-2
1).The Hon'ble Apex Court in the case of Azeez Sait dead by Lrs.
And Others vs. Aman Bai and Others reported in (2003) 12 SCC 419,
The Hon'ble Apex Court in para 20 held as under:
20. Learned counsel appearing for the appellants contended that the
parties are governed by the provisions of Cutchi Menons Act. We are of
the view that the issues as to whether Hindu Law or Mohammedan Law
should be applied to the parties under suit is not really relevant and does
not alter the situation because the partition had taken place in the year
1914 as between the brothers. The factum of partition and the deed of
1914 having been accepted, and in the absence of any evidence to
destroy the validity of the partition deed the application of Hindu Law or
Muslim Law would not alter the findings in the case. When the partition
of 1914 has been accepted and acted upon by the brother for all these
years and had brought about an equitable settlement of the distribution
of the properties between them, the plaintiff/appellants cannot now
come round and say that the document is sham and nominal. A reading
of the plaint would show that the plaintiff had never asked for a share in
'Abba Manzil' during the life time of Mohd. Abba Sait, and the suit was
filed only after the death of Mohd. Abba Sait in 1967. It is also admittedly
by the plaintiff that suit item No. 1 was in possession of Mohd. Abba Sait
during his life time. Subsequently, defendants are in possession of the
same. The entire evidence on record shows that the parties have been
in possession and occupation of their respective shares and properties
allotted under the partition deed and have dealt with the same. The trial
court as well as the High Court have accepted the partition of 1914 for
the cogent and convincing reasons recorded thereunder. The appellants
have not shown any reason to interfere with the judgment of the High
Court.
2) 18. Admittedly, in the instant case, partition was effected in the year
1956, 1974 and 1997. Plaintiff Nos.1 and 2 and defendant have affixed
their signature on the said document and on the strength of the partition
deeds, the names of the respective parties are entered in the records as
well as in the Municipal records at Dharwad. The parties have acted
upon on the said partition deeds. It is the case of the plaintiffs that
partition effected between plaintiff Nos.1 and 2 and defendants is
unequal. The said partition effected on 3 occasions i.e., 1956, 1974 and
1997. The plaintiffs have not raised objections on the ground that
partition effected between the parties is unequal till 2007. The Hon'ble
Apex Court in the case of Smt.Krishnabai Bhritar Gapatarao
Deshmukh vs. Appasaheb Tulajaramarao Nimbalkar and Others
reported in (1979) 4 SCC 60 and in the case of Parvathamma and
Others vs. Venkatsivamma and Others reported in (2016) 15 SCC
436 held that mere existence of unequal shares does not lead to
inference of fraud or coercion.
“In other words to put the binding effect and the essentials of a family
settlement in a concretised form, the matter may be reduced into the
form of the following propositions:
(1) The family settlement must be a bona fide one so as to resolve family
disputes and rival claims by a fair and equitable division or allotment of
properties between the various members of the family
(2) The said settlement must be voluntary and should not be induced by
fraud, coercion or undue influence;
(3) The family arrangements may be even oral in which case no
registration is necessary;
(4) It is well settled that registration would be necessary only if the terms
of the family arrangement are reduced into writing. Here also, a
distinction should be made between a document containing the terms
and recitals of a family arrangement made under the document and a
mere memorandum prepared after the family arrangement had already
been made either for the purpose of the record or for information of the
court for making necessary mutation. In such a case the memorandum
itself does not create or extinguish any rights in immovable properties
and therefore does not fall within the mischief of S.17(2) of the
Registration Act and is, therefore, not compulsorily registrable;
(5) The members who may be parties to the family arrangement must
have some antecedent title, claim or interest even a possible claim in the
property which is acknowledged by the parties to the settlement. Even if
one of the parties to the settlement has not title but under the
arrangement the other party relinquishes all its claims or titles in favour
of such a person and acknowledges him to be the sole owners, then the
antecedent title must be assumed and the family arrangement will be
upheld and the Courts will find no difficulty in giving assent to the same.”
5) The learned counsel for the defendant also placed decision of the
Apex Court reported in [2006 KHC 626 : 2006 (4) SCC 658 : AIR 2006
SC 2488 : JT 2006 (4) SC 251] Hari Shankar Singhania and others v.
Gaur Hari Singhania and others, wherein the Apex Court after
referring the decision in Kale’s case (supra) held in paragraph No.67 as
under:
“67. Conclusion: better late than never We have already referred to the
concept of family arrangement and settlement. The parties are members
of three different groups and are leading business people. We, therefore,
advise the parties instead of litigating in the court they may as well
concentrate on their business and, at the same time, settle the disputes
amicably which, in our opinion, is essential for maintaining peace and
harmony in the family. Even though the parties with a good intention
have entered into the deed of dissolution and to divide the properties in
equal measure in 1987, the attitude and conduct of the parties has
changed, unfortunately in a different direction. Therefore, it is the duty of
the court that such an arrangement and the terms thereof should be
given effect to in letter and spirit. The appellants and the respondents
are the members of the family descending from a common ancestor. At
least now, they must sink their disputes and differences, settle and
resolve their conflicting claims once and for all in order to buy peace of
mind and bring about complete harmony and goodwill in the family.”
“We shall now consider the citations relied upon by the respondents:
"10. In other words to put the binding effect and the essentials of a
family settlement in a concretized form, the matter may be reduced into
the form of the following propositions:
(1) The family settlement must be a bona fide one so as to resolve
family disputes and rival claims by a fair and equitable division or
allotment of properties between the various members of the family;
(2) The said settlement must be voluntary and should not be induced by
fraud, coercion or undue influence;
(4) It is well settled that registration would be necessary only if the terms
of the family arrangement are reduced into writing. Here also, a
distinction should be made between a document containing the terms
and recitals of a family arrangement made under the document and a
mere memorandum prepared after the family arrangement had already
been made either for the purpose of the record or for information of the
Court for making necessary mutation. In such a case the memorandum
itself does not create or extinguish any rights in immovable properties
and therefore does not fall within the mischief of S.17(2) (sic) (S.17(1)
(5) The members who may be parties to the family arrangement must
have some antecedent title, claim or interest even a possible claim in the
property which is acknowledged by the parties to the settlement. Even if
one of the parties to the settlement has no title but under the
arrangement the other party relinquishes all its claims or titles in favour
of such a person and acknowledges him to be the sole owner, then the
antecedent title must be assumed and the family arrangement will be
upheld, and the Courts will find no difficulty in giving assent to the same;
(6) Even if bona fide disputes, present or possible, which may not
involve legal claims are settled by a bona fide family arrangement which
is fair and equitable the family arrangement is final and binding on the
parties to the settlement.
" After reviewing several judgments of this Court, the Privy Council and
other High Courts, this Court in paragraph 20 indicated the following
propositions:
(3) If though it could have been made orally, it was in fact reduced to the
form of a "document" registration (when the value is Rs. 100 and
upwards) is necessary.
(4) Whether the terms have been "reduced to the form of a document" is
a question of fact in each case to be determined upon a consideration of
the nature and phraseology of the writing and the circumstances in
which and the purpose with which it was written.
(6) If the terms were "reduced to the form of a document" and, though
the value was Rs. 100 or upwards, it was not registered, the absence of
registration makes the document inadmissible in evidence and is fatal to
proof of the arrangement embodied in the document.
" Ultimately, this Court held that the family arrangement in the nature of
a compromise which was considered in that case did not require
registration. It was further held that since the existence of the family
arrangement was admitted in that case, the same was binding on the
principle of estoppel. Also, even if the family arrangement could not be
registered it could be used for collateral purpose, i.e. to show the nature
and character of possession of the parties in pursuance of the family
settlement and also for the purpose of applying the rule of estoppel
which flowed from the conduct of the parties, who, having taken benefit
under the settlement for seven years, later tried to resile from the
settlement.”