Family Arrangement – Panchayat Resolution reduced in writing – Resulting in relinquishment of rights – could be taken as Family Arrangement – though not registered can be used as a piece of evidence for showing or explaining the conduct of the parties. [Registration Act, 1908, S. 49, 17; Evidence Act, 1872, S.91]

A suit for partition was filed. The defendants opposed the same on the ground that plaintiffs had relinquished their rights for consideration and this was recorded in Panchayat Resolution. The Trial Court as well as the High Court held that Panchayat Resolution cannot be construed as a Family Arrangement and was inadmissible in evidence as the same was not registered. On appeal, the Supreme Court held that, the Trial Court and the High Court were not right in brushing aside the oral and documentary evidence adduced by the defendant to prove that the plaintiffs had relinquished their right in the immovable property. There is no provision of Law requiring family settlements to be reduced to writing and registered though when reduced to writing the question of registration may arise. Binding family arrangements dealing with immovable property worth more than rupees hundred can be made orally and when so made, no question of registration arises. If, however, it is reduced to writing with the purpose that the terms should be evidenced by it, it requires registration and without registration it is inadmissible; but the said family arrangement can be used as corroborative piece of evidence for showing or explaining the conduct of the parties.