Settlement deed can’t be cancelled unilaterally: HC

Those seeking cancellation must approach civil courts, the Karnataka High Court has reiterated.

April 30, 2024: A registered settlement deed can’t be cancelled on the whim of a party, the Karnataka High Court (HC) has ruled, adding that one can approach civil courts for cancellation of such a deed.

“It is only the Court which can cancel the deed duly executed under the circumstances mentioned in Section 31 and other provisions of the Specific Relief Act,” Justice HP Sandesh said in an order dated April 19, 2024.

For the uninitiated, a settlement deed is a legal instrument, using which members of a family often resolve property disputes, ongoing as well as potential. Using a settlement deed, members of a family can clearly divide an asset among themselves, leaving no scope for confusion over ownership. Settlement deed can also be used to gift your share in a property to a non-member of the family.

“Section 31 of the Specific Relief Act is very clear that the person has the discretion to approach the competent Civil Court for adjudicating the said instrument to be cancelled … The law provides for cancellation of such instruments and the same cannot be cancelled unilaterally and the very cancellation of settlement deed is without any right,” the HC said while delivering its order in the Duggatti Matada Nagaraj versus Danappa & Others case.

 

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