Partition deed creation

Partition of property/properties should be done at a time only but not piecemeal.  So please wait till the judgments are announced. Or if need money, Properties 1 and 2 are in the name of your mother-in-law, she can sell the same.  They mutually decide to give the EMIs paid by your wife after the sale.  

Instead of waiting for the judgment to be made by the court while disposing both the pending cases, which of course may take years, it is advised that you proceed with your proposal to divide the properties accordingly.

There are only two shareholders to succeed to the properties hence the properties can be divided and partitioned between both the daughters only hence the niece of your wife cannot be included in this family partition.

Of course her mother can be instructed to subsequently  make a settlement deed in favor of her daughter by retaining life interst with her over the properties.

Prefer for settlement deed between all stakeholders amicably and submit the settlement to court so that a compromise decree can be passed by the adjudicating court. 

Thank you Sir's  for your valuble suggestions

MY mother in law has passed away and all the properties are self made by late Father in law and my wife has contributed for for Property 1 we would like to ensure partition to be smooth and fair and also ensure security to the Child  Would relinsquishment deed  be of any help here , like  Each sister releasing her share to the other amicably . or is the partition deed only way out here

All the properties vest jointly with the sisters. They can amicably execute a partition deed in their best judgment. When you are willing to take care of the niece, why the obsession with the financial gestures from your wife in the past?