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Compromise decree

(Querist) 02 January 2013 This query is : Resolved 
Respected experts,
My client wants to purchase the neighbouring property for that he want legal opinion. So he came to me. I asked to produce the documents regarding the title. He gave one compromise decree, When I peruse that I am having little confusion. So I want to clarify for that I ask this query. I explain the terms of compromise.'A' and 'B' are brothers. "A" files a partition suit against his brother 'B'. During pendency of the suit, "A" includes his wife as another plaintiff and it was amended. Then they reach a compromise among themself. In that compromise petition they included the property not mentioned in the suit and one of the property is in the name of "B" is transferred to these plaintiffs. and as that they filed compromise petition. as the terms of compromise petition the compromise decree is obtained. The compromise decree is drawn on 1% of the NJS total value of the property. But it is not registered. The question is my client wants to purchase the property, which is originally belongs to "B" in this compromise degree it comes to "A" and his wife name. Kindly suggest me whether it is legally aspectable compromise deed.what I can tell to my client. Since the property is neighbouring property. Kindly tell me the status of the compromise decree.
Thanks & Regards
L.Ramesh.,M.Sc.,M.Phil.,LL.B.,
Advocate
Dharmapuri
Adv.R.P.Chugh (Expert) 02 January 2013
Any decree whether compromise or on merits if it pertains to property outside the subject matter has to be registered in order to take effect. The Court decree has to be presented for registration within 8 months max.

Read S.17(2) (vi) any decree or order of a Court 1[ except a decree or order expressed to be made on a compromise and comprising immovable property other than that which is the subject- matter of the suit or proceeding]; or

In a partition suit i am assuing your client included only the joint properties. If yes - then registration duty has to be paid as B's seperate property was never the subject matter.

Raj Kumar Makkad (Expert) 02 January 2013
A had filed a partition suit against B as per the given query. if the subject property originally belong to B then for which property the partition was sought?

You should bring this fact here before I advise concretely. I think A might have also mentioned the property held in the hands of B or all properties as joint Hindu properties and accordingly would have sought partition among members of family. If this was the position then there is no need to get registration of such family settlement/compromise upon which the decree had been passed.
Advocate Ramesh (Querist) 02 January 2013
I explain the fact fully sir. 'A' and 'B' are brothers. In the year 1965 their father partitioned their properties in that the father taken some immovable properties, similarly both the brothers 'A' AND 'B' allotted some immovable properties. In the year 1984, the father expired. This parition suit is filed in the year 1994 by the one son"A" to his brother "B" regarding its father share. During the pendency of the suit in the year 1996 Mr.'A' is impleaded his wife as another plaintiff and it was amended. After amendment. In the september of 1996 they filed a compromise petition in that more than 10 properties are shifted either from A to B and B to A (like Property 1 , Property 2 etc like that).in that schedule one of the property that is the subject property is transferred from 'B' to 'A'. this subject property is not the suit property(i.e) this property is in the name of the "B" ( as per partition deed in the year 1965) as per compromise petition the compromise decree is obtained. But it is not registered. The compromise decree is drawn on 1% of NJS of the suit value. My client wants legal opinion regarding that property alone. My question is whether this compromise decree is legally valid. Can I advice my client to purchase the above property. Kindly assist Mr.Raj Kumar makkad sir.

Regards
L.Ramesh
Dharmapuri
Raj Kumar Makkad (Expert) 03 January 2013
Such property is purely valid. A compromise may include even a property which is exclusively held in the ownership and possession of a particular party to the suit. It can very well be purchased without any legal hurdle.
Advocate Ramesh (Querist) 04 January 2013
Thank You sir for your valuable advice.

Regards
L.Ramesh
Raj Kumar Makkad (Expert) 04 January 2013
most welcome from your side.
R.venkatesh Naidu (Expert) 14 January 2013
there is no doubt, your client may purchase the property.


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