2020 INSC 0399 1 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 7764 OF 2014 Ravinder Kaur Grewal & Ors. ...Appellant(s) Versus Manjit Kaur & Ors.       ...Respondent(s) J U D G M E N T A.M. Khanwilkar, J. 1. This   appeal   emanates  from   the   judgment   and  decree  dated 27.11.2007 passed by the High Court of Punjab and Haryana at Chandigarh 1  in R.S.A. No. 946/2004, whereby the second appeal filed   by   the   respondent   Nos.   1   to   3   (heirs   and   legal representatives of Mohan Singh ­ original defendant No. 1) came to   be   allowed   by   answering   the   substantial   question   of   law formulated as under: ­ “Whether the document Ex.P­6 required registration as by way of said document the interest in immovable property worth   more   than   Rs.100/­   was   transferred   in   favour   of the plaintiff?” 1 For short, “the High Court” 2 2. Briefly   stated,   the   suit   was   filed   by   the   predecessor   of   the appellants   herein   ­   Harbans   Singh,   son   of   Niranjan   Singh, resident   of   Sangrur,   Punjab   against   his   real   brothers   Mohan Singh   (original   defendant   No.   1)   and   Sohan   Singh   (original defendant   No.   2)   for   a   declaration   that   he   was   the   exclusive owner   in   respect   of   land   admeasuring   11   kanals   17   marlas comprising   khasra   Nos.   935/1   and   935/2   situated   at   Mohalla Road   and   other   properties   referred   to   in   the   Schedule.     He asserted that there was a family settlement with the intervention of   respectable   persons   and   family   members,   whereunder   his ownership   and   possession   in   respect   of   the   suit   land   including the   constructions   thereon   (16   shops,   a   samadhi   of   his   wife   – Gurcharan Kaur and one service station with boundary wall) was accepted  and   acknowledged.     Structures   were   erected   by   him   in his   capacity   as   owner   of   the   suit   land.     It   is   stated   that   in   the year   1970   after   the   purchase   of   suit   land,   some   dispute   arose between   the   brothers   regarding   the   suit   land   and   in   a   family settlement   arrived   at   then,   it   was   clearly   understood   that   the plaintiff – Harbans Singh would be the owner of the suit property including   constructions   thereon   and   that   the   name   of   Mohan Singh   (original   defendant   No.   1)   and   Sohan   Singh   (original 3 defendant   No.   2)   respectively   would   continue   to   exist   in   the revenue   record   as   owners   to   the   extent   of   half   share   and   the plaintiff   would   have   no   objection   in   that   regard   due   to   close relationship between the parties.  However, the defendants raised dispute   claiming   half   share   in   respect   of   which   Harbans   Singh (plaintiff)   was   accepted   and   acknowledged   to   be   the   exclusive owner   and   as   a   result   of   which   it   was   decided   to   prepare   a memorandum   of   family   settlement   incorporating   the   terms already   settled   between   the   parties,   as   referred   to   above.     The stated   memorandum   was   executed   by   all   parties   on   10.3.1988. However,   after   execution   of   the   memorandum   of   family settlement   dated   10.3.1988,   the   defendants   once   again   raised new   issues   to   resile   from   the   family   arrangement.     As   a   result, Harbans   Singh   (plaintiff)   decided   to   file   suit   for   declaration   on 9.5.1988,   praying   for   a   decree   that   he   was   the   owner   in possession   of   the   land   admeasuring   11   kanals   17   marlas comprising of khasra Nos. 935/1 and 935/2 situated at Mohalla Road.  An alternative plea was also taken that since plaintiff was in  possession  of the whole  suit property  to  the knowledge of the defendants   openly   and   adversely   for   more   than   twelve   years,   he had acquired ownership rights by way of adverse possession.   4 3. The   suit   was   resisted   by   the   defendants   by   filing   written statement.     Harbans   Singh   (plaintiff)   filed   replications.     On   the basis of rival pleadings, the Civil Judge (Junior Division), Sangrur in   Suit   No.   187/1988   B.T.   No.   185   of   18­1­95   (18­1­95)   framed following issues: ­ “1. Whether   the   plaintiff   is   owner   in   possession   of   suit   land? OPP 2. Whether  there   was  any   family   settlement   between   the parties   on   10.3.1988   and   memo   of   family   settlement was executed by parties on that day? OPP 3. Whether   the   plaintiff   constructed   shops,   a   service station   and   boundary   wall   around   the   disputed property? OPP 4. Whether the plaintiff has become owner of suit land by adverse possession? OPP 5. Whether the property in dispute was purchased out by the   income   of   Joint   Hindu   Family   coparcenary property   and   construction   on   the   suit   land   was   also purchased   by   Joint   Hindu   Family   coparcenary property? OPD 6. Whether   Sohan   Singh,   Mohan   Singh   and   Harbans Singh constitute a Joint Hindu Family? OPD 7. Whether the defendants are estopped from denying the execution   of   memo   of   family   settlement   by   their   act and conduct? OPP 8. Relief.” During the pendency of the suit, Harbans Singh (plaintiff) expired and,   therefore,   the   appellants   herein   were   brought   on   record being   his   legal   heirs.     The   trial   Court   vide   judgment   and   decree dated 19.1.2000, partly decreed the suit in the following terms: ­ “RELIEF  5 30. In   view   of   my   discussion   on   various   issues above, the suit  of the plaintiff partly succeeds and partly fails.     Therefore,   his   suit   is   decreed   partly   to   the   extent that   he   is   declared   to   be   owner   in   possession   of   khasra no.   935/1/1/2   (5­18)   and   to   the   extent   of  ½   share   in khasra   no.   935/1/1/1   (5­19)   with   construction   there upon.     Keeping   in   view   the   relationship   between   the parties and the circumstances of the case, no order as to cost.     Decree   sheet   be   prepared   accordingly.     File   be consigned to the record room.” 4. Aggrieved   by   this   decision,   the   appellants/plaintiffs   filed first appeal before the District Judge, Sangrur being Civil Appeal No. 45 of 5­2­2000 B.T. No. 60 of 11­6­2001.   The first appellate Court, after reappreciating the pleadings and evidence on record, was   pleased   to   allow   the   appeal   and   modify   the   judgment   and decree   passed   by   the   trial   Court.     The   first   appellate   Court declared the original plaintiff as owner of the suit land alongwith constructions including 16 shops, a service station and boundary wall with samadhi in the land.  The operative order passed by the first appellate Court, dated 29.11.2003, reads thus: ­ “18. In the light of the above discussion, the appeal is allowed   and   the   judgment   passed   by   the   learned   trial court   is   modified   and   the   suit   of   the   plaintiff   is   decreed. The   plaintiff   is   declared   owner   of   the   land   measuring   11 kanals   17   marlas   comprised   in   rectangle   and   killa   no. 935/1/1/1   (5­19),   935/1/1/2   (5­18)   situated   in   Mehlan Road,   Sangrur   along   with   construction   including   16 shops,   a   service   station   and   boundary   wall   with   samadh in the land.   In view of the peculiar circumstances of the case   the   parties   are   left   to   bear   their   own   costs.     Decree sheet be prepared and copy of the judgment be placed on the   file   of   the   learned   trial   court   and   the   same   be returned   immediately   to   the   successor   court   of   Smt. 6 Harreet Kaur PCS, the then Civil Judge (Junior Division), Sangrur.     This   court   file   be   consigned   to   the   record room.” 5. The   respondent   Nos.   1   to   3   being   legal   representatives   of Mohan   Singh   (original   defendant   No.   1)   preferred   second   appeal before   the   High   Court   being   R.S.A.   No.   946/2004.     The   learned single   Judge   answered   the   substantial   question   of   law reproduced   in   paragraph   1   above   in   favour   of   the   said respondents.     The   High   Court   was   pleased   to   set   aside   the conclusion recorded by the first appellate Court and opined that the document which, for the first time, creates a right in favour of plaintiff   in   an   immovable   property   in   which   he   has   no   pre­ existing   right   would   require   registration,   being   the   mandate   of law.   Accordingly, the second appeal came to be allowed and the judgment and decree passed by the lower appellate Court was set aside, thereby restoring the decree passed by the trial Court, vide impugned judgment dated 27.11.2007. 6. The  appellants  have  questioned  the  correctness  of  the  view taken   by   the   High   Court   and   in   particular,   reversing   the conclusion   reached   by   the   first   appellate   Court.     When   the present   appeal  was   taken   up  for   hearing,  the   Court  referred  the matter to a larger Bench of three­Judges to answer the question 7 as   to   whether   the   acquisition   of   title   by   adverse   possession   can be taken by plaintiff under Article 65 of the Limitation Act, 1963 and is there any bar under the Limitation Act to sue on aforesaid basis   in   case   of   infringement   of   any   rights   of   a   plaintiff.     The appeal   accordingly   proceeded   before   the   three­Judge   Bench, which   in   turn   answered   the   said   question   vide   judgment   dated 7.8.2019 2   in   favour   of   the   plaintiff.     As   a   result,   the   matter   has been placed before us for  consideration of the appeal on its own merits.   7. The appellants would contend that the High Court disposed of   the   second   appeal   in   a   casual   manner   and   more   so,   without dealing   with   the   finding   of   fact   recorded   by   the   first   appellate Court in favour of the plaintiff.  It is urged that the first appellate Court,   after   noticing   the   admitted   factual   position,   proceeded   to first   examine   the   question   whether   the   document   dated 10.3.1988 (Exhibit P­6) was executed by the parties or not.  That fact has been answered in favour of the plaintiff (appellants) after analysing   the   evidence   on   record.     It   has   been   held   that   the stated  document  was  indisputably  executed by  the  parties.    The next question considered by the first appellate Court was whether 2 Reported as (2019) 8 SCC 729 8 the stated document required registration or not, which has been justly   answered   in   favour   of   the   plaintiff   (appellants)   on   the finding   that   it   was   merely   a   memorandum   of   family   settlement and   not   a   document   containing   terms   and   recitals   of   the   family settlement   made   thereunder.     For   that,   the   first   appellate   Court noted that the plaintiff had constructed 16 shops and a samadhi including boundary wall on the suit land on his own, which fact was   indisputable   and   established   from   the   evidence   on   record. Further,   the   plaintiff   was   in   possession   of   the   suit   land.     Even this   finding   is   supported   by   the   evidence   on   record   and   is   well­ established.     It   is   also   established   from   record   that   as   per   the family   settlement,   the   plot   in   Prem   Basti   belonging   to   Harbans Singh (plaintiff) was given to Sohan Singh (original defendant No. 2),   which   was   in   possession   of   Mohan   Singh   (original   defendant No. 1) and that another plot purchased by plaintiff in the name of his   son   Vikramjit   Singh   was   given   to   Mohan   Singh   (original defendant   No.   1)   and   his   wife.     Notably,   the   Defendant   Witness No. 1 (DW­1) admitted that the said property was sold thereafter to   one   Surjit   Kaur.     In   substance,   it   is   established   that   the parties   had   acted   upon   the   family   settlement,   which   was recorded   in   the   form   of   document   ­   Exhibit   P­6   being   a 9 memorandum   of   family   settlement.     In   other   words,   the concerned parties had acted upon the family arrangement as per the   settlement   terms   decided   in   1970   and   reinforced   by   the document Exhibit P­6 (memorandum of family settlement).  Being a   memorandum   of   family   settlement,   it   was   not   required   to   be registered   and,   in   any   case,   the   parties   having   acted   upon   the terms of the said settlement to the prejudice of the other party, it was not open to them to resile from the said arrangement.  Thus, they   are   estopped   from   disowning   the   arrangement   already reached,   acted   upon   and   so   recorded   in   the   memorandum   of family   settlement.     Thus   understood,   the   plaintiff   was   accepted and acknowledged to be the owner of the suit property by all the family   members   who   were   also   party   to   the   memorandum   of family   settlement   (Exhibit   P­6).     The   appellants   have   placed reliance on the decision of this Court in  Kale & Ors. vs. Deputy Director of Consolidation & Ors. 3    They pray for restoration of the   decree   passed   by   the   first   appellate   Court   and   setting   aside the impugned judgment. 8. On   the   other   hand,   the   respondent   Nos.   1   to   3   would contend that the High Court has rightly considered the document 3 (1976) 3 SCC 119 10 Exhibit P­6 as containing terms and recitals of family settlement and for which reason it was essential to get the same registered. It   is   urged   that   there   was   no   pre­existing   title   in   favour   of   the plaintiff   in   respect   of   the   suit   property,   as   the   same   was purchased   in   the   name   of   concerned   defendant   by   way   of   a registered sale deed.   The parties were not in possession of Joint Hindu   Family   property   as   such   and   therefore,   the   question   of partition of that property does not arise.  The plea that there was no Joint Hindu Family property was taken by the plaintiff in the replication filed before the trial Court.  This plea was taken in the context   of   the   assertion   made   by   the   defendants   in   the   written statement   that   the   suit   property   was   jointly   owned   by   Mohan Singh   (original   defendant   No.   1)   and   Sohan   Singh   (original defendant No. 2).  The contesting respondents have reiterated the stand   that  there  was  no   family   settlement  in   1970,  as stated  by the   plaintiff   and   that   the   signature   of   the   defendant   No.   2 appearing   in   document   Exhibit   P­6   is   forged   and   fabricated. Further,   the   High   Court   has   justly   non­suited   the   plaintiff   and preferred   to   restore   the   partial   decree   passed   by   the   trial   Court on the conclusion that the document Exhibit P­6 is inadmissible in   evidence,  as it  has  not   been  registered  despite the   transfer  of 11 title in immovable property  worth more than Rs.100/­.   In other words,  the   High  Court   answered   the  substantial  question   of  law against the plaintiff and as a result of which it rightly allowed the second   appeal   filed   by   the   defendants   (respondent   Nos.   1   to   3). The view so taken by the High Court is unexceptionable. 9. We   have   heard   Mr.   Manoj   Swarup,   learned   senior   counsel for   the   appellants   and   Mr.   Parveen   Kumar   Aggarwal,   learned counsel for the respondents. 10. The   core   issue   involved   in   this   appeal   is:   whether   the document Exhibit P­6 was required to be registered as interest in immovable property worth more than Rs.100/­ was transferred in favour of the plaintiff?   11. It   is   not   in   dispute   that   the   parties   are   closely   related. Mohan   Singh   (original   defendant   No.   1)   and   Sohan   Singh (original   defendant   No.   2)   were   real   brothers   of   Harbans   Singh (original   plaintiff).     Original   defendant   No.   4   –   Harjinder   Kaur   is the wife of Sohan Singh (original defendant No. 2).   The father of the plaintiff and defendant Nos. 1 and 2 died during minority of defendant Nos. 1 and 2.   The defendants had proved the copy of sale   deed   dated   16.4.1970   (Exhibit   DW­3/A),   whereby   Mohan 12 Singh   (original   defendant   No.   1)   and   Sohan   Singh   (original defendant   No.   2)   purchased   land   admeasuring   5   kanals   19 marlas comprised in khasra No. 935/1.  Harbans Singh (plaintiff) had appeared on behalf of the purchaser at the time of execution of   the   sale   deed.     Jamabandi   for   the   year   1984­1985   of   the property   in   dispute   (Exhibit   D­1)   reveals   that   khasra   No. 935/1/1/1   (5­19)   shows   the   name   of   Mohan   Singh   (original defendant   No.   1)   and   Sohan   Singh   (original   defendant   No.   2)   as owners,  whereas  the  name  of  Harbans  Singh   (plaintiff)  is  shown against   khasra   No.   935/1/1/2   (5­18)   as   owner.     Mohan   Singh (original   defendant   No.   1)   had   stated   that   the   land   standing   in the  name of  Harbans Singh (original  plaintiff)  was purchased by him   from   the   funds   of   joint   family,   but   that   fact   has   not   been proved   or   established   by   the   contesting   defendants.     In   that sense, it may appear from the revenue record that the concerned parties were owners in respect of separate properties and not as joint   owners.     The   fact   remains   that   Harbans   Singh   (original plaintiff),   Mohan   Singh   (original   defendant   No.   1)   and   Sohan Singh   (original   defendant   No.   2)   are   closely   related   being   real brothers.     Further,   although   the   ownership   of   the   suit   property recorded in Jamabandi is of concerned defendant, Harbans Singh 13 (plaintiff)   had   constructed   16   shops,   samadhi   of   his   wife   – Gurcharan Kaur and a boundary wall on the property and was in possession   thereof.     Pertinently,   the   trial   Court   had   opined   in paragraph   24   of   its   judgment   that   all   the   three   brothers   – Harbans Singh (plaintiff), Mohan Singh (original defendant No. 1) and   Sohan   Singh   (original   defendant   No.   2),   as   noted   in   Exhibit P­6,   owned   various   properties,   on   which   possession   of   Harbans Singh (plaintiff) being the eldest brother is admitted.  However, it was  a permissive  possession.    The first  appellate  Court has  also opined   in   paragraph   16   of   the   judgment   that   Harbans   Singh (plaintiff)   came   in   possession   of   the   suit   property   with   the consent   of   the   defendants.     Notably,   this   finding   of   fact   has   not been   disturbed   by   the   High   Court.     That   apart,   it   is   established from   the   record   that   plot   at   Prem   Basti   belonged   to   Harbans Singh   (plaintiff),   which   was   given   to   Sohan   Singh   (original defendant   No.   2)   after   taking   possession   thereof   from   Mohan Singh   (original   defendant   No.   1).     Further,   plot   purchased   by Harbans   Singh   (plaintiff)   in   the   name   of   his   son   was   given   to Mohan Singh (original defendant No. 1) and his wife.  It has been admitted   by   DW­1   that   later   on   the   said   plot   was   sold   to   one Surjit Kaur.  These facts clearly establish that there was not only 14 univocal family arrangement between the parties, but it was even acted upon by them without any exception.  This factual position has not been doubted by the High Court.   12. As a matter of fact, the High Court has not bothered to even advert   to   this   aspect,   whilst   analysing   the   correctness   of   the finding   of   fact   recorded   by   the   first   appellate   Court,   which   was the   final   fact­finding   Court.    From   the   impugned  judgment,  it   is noticed   that   after   giving   the   basic   facts,   the   High   Court   first extracted   the   relevant   portion   from   the   trial   Court’s   judgment (paragraphs 17­21 thereof) and thereafter adverted to the finding and conclusion recorded by the trial Court on other issues.   The High Court then went on to extract paragraph 16 of the judgment of   the   first   appellate   Court   in   its   entirety,   running   into   about   8 pages and  then  formulated  the substantial  question  of law.    For answering   the   said   substantial   question   of   law,   the   High   Court first   adverted   to   the   decision   of   this   Court   in   Bhoop   Singh   vs. Ram   Singh   Major   &   Ors. 4   and   reproduced   paragraphs   12,   13, 16 and 18 thereof.  After that, the relevant portion of the decision of   the   same   High   Court   in   the   case   of   Hans   Raj   &   Ors.   vs. 4 (1995) 5 SCC 709 15 Mukhtiar   Singh 5   has   been   extracted.     After   doing   so,   the   High Court then referred to the contention of the appellants herein and extracted   paragraphs   44   and   54   of   the   judgment   in   Hari Shankar Singhania & Ors. vs. Gaur Hari Singhania & Ors. 6 The   High   Court   then   adverted   to   a   decision   of   the   same   High Court   in   Jagdish   &   Ors.   vs.   Ram   Karan   &   Ors. 7   and reproduced   paragraph   14   thereof.     Only   after   reproducing   the aforesaid   extracts   in   extenso ,   learned   single   Judge   of   the   High Court   adverted   to   the   factual   aspects   of   the   present   case   in   the following words, to allow the appeal: ­ “On a consideration of the matter, I find that a document which,   for   the   first   time,   creates   a   right   in   favour   of plaintiff   in   an   immovable   property   in   which   he   has   no pre­existing   right,   then   registration   is   required.     The presumption of pre­existing right can only be inferred if a consent decree is passed where such claim is admitted by the other party, but a document which is not disputed by the   party   and   there   is   no   admission   regarding   the acceptance   of   a   right   and   suit   is   based   on   such   a document   under   which   the   right   is   transferred   to   the plaintiff   in   a   property   in   which   he   has   no   pre­existing right, then it would not require registration as is the ratio of the judgment of the Hon’ble Supreme Court in the case of Som Dev and others (supra).  In view of this proposition of law if the matter is considered, the question of law, as framed, has to be answered in favour of the appellants. In   the   present   case,   it   may   be   noticed   that   the property   in   dispute   was   purchased   by   way   of   two   sale deeds and the ownership of the parties was duly reflected in   the   revenue   record.     The   plaintiff   claimed   right   to   the 5 (1996) 3 RCR (Civil) 740 (paragraphs 7 to 9) 6 (2006) 4 SCC 658 7 PLR (2003) 133 P&H 182 16 property under the deed of family settlement Exhibit P­6. Thus   he   claimed   that   the   defendants   had   relinquished their right in the immovable property in his favour under the memorandum of family settlement  which was alleged to  have  been   executed   much   earlier.     In  any   case,   it   has to   be   held   that   the   document   transferring   title   in   an immovable   property   worth   more   than   Rs.100/­   rupees, even   if   it   was   by   way   of   relinquishment,   the   same required   registration.     Thus,   the   learned   trial   Court   was right   in   holding   that   no   title   passed   on   to   the   plaintiff under   Exhibit   P­6   i.e.   family   settlement   entered   into between the parties.  This view of mine finds support from the judgment of the Hon’ble Supreme Court in the case of Hari   Chand   (dead)   through   LRs   vs.   Dharampal   Singh Baba,   2007   (4)   Herald   (SC)   3028,   wherein   the   Hon’ble Supreme   Court   has   been   pleased   to   lay   down   that   the family   settlement   could   only   be   if   one   has   lawful   right over the property and then alone family settlement could be executed.  When there is no lawful rights of the parties over the property, there was no occasion to file the suit on the basis of family settlement. In view  of what  has been stated and discussed above, this   appeal   is   allowed   and   the   judgment   and   decree passed   by   the   learned   lower   Appellate   Court   is   set   aside and that of the learned trial Court is restored, but with no order as to costs.”  13. As   against   this,   the   first   appellate   Court   thoroughly examined   the   pleadings   and   the   evidence,   oral   as   well   as documentary, placed on record by the concerned parties.   In the first   place,   it   examined   the   question   whether   the   document Exhibit P­6 was executed by the parties or not.  After adverting to the   relevant   evidence,   the   first   appellate   Court   opined   that   the trial Court was right in concluding that Exhibit P­6 was executed by the parties referred to therein.   That being concurrent finding of   fact,   needs   no   further   scrutiny.     The   High   Court   has   not 17 reversed this finding of fact, as is noticed from the extracts of its judgment reproduced above.   The first appellate Court then went on to examine whether  the document required registration.   The High Court has reproduced paragraph 16 of the judgment of the first appellate Court in its entirety.   What is relevant to notice is that   the   first   appellate   Court   adverted   to   the   pleadings   and   oral and   documentary   evidence   produced   by   the   respective   parties and found that the plaintiff had proved the compromise (Exhibit CX)   dated   15.5.1992   between  the   plaintiff   and   defendant   Nos.   2 and 3, namely, Sohan Singh and Harjinder Kaur.  Harjinder Kaur had   stepped   into   witness   box   and   admitted   the   said   fact.     She also admitted the fact of execution of a family settlement.   Thus, the   dispute   was   between   the   successors   of   Harbans   Singh (plaintiff) and successors of Mohan Singh (original defendant No. 1).     The   first   appellate   Court   thus   accepted   the   stand   of   the plaintiff   that   in   the   year   1970,   after   purchase   of   land,   dispute arose   between   the   parties   regarding   the   suit   land   and   in   that family   settlement,   plaintiff   was   held   to   be   owner   of   the   suit property including its constructions.  The first appellate Court in that context observed thus: ­ 18 “16. …     The   specific   case   of   the   plaintiff   that   he constructed with his personal money 16 shops on the suit land,   one   service   station   with   boundary   wall   and   also samadh   of   Smt.   Gurcharan   Kaur.     It   is   admitted   that samadh of Gurcharan Kaur is in the suit property.  If the plaintiff   was   not   acknowledged   the   owner   of   the   suit property   then   there   was   no   question   of   construction   of samadh of Gurcharan Kaur his wife by the plaintiff on the suit   property.     So   the   version   of   the   defendant   that   no dispute   arose   in   the   year   1970   and   no   family   settlement took place can not be accepted…” The first appellate Court then analysed the evidence of defendant witnesses and held that the same were not reliable or trustworthy as   they   did   not   know   any   fact   regarding   the   suit   property.     The first   appellate   Court   then   adverted   to   another   crucial   fact   and noted   that   Mohan   Singh   (original   defendant   No.   1)   and   Sohan Singh   (original   defendant   No.   2)   were   residing   in   house   situated at   Prem   Basti   prior   to   1988,   which   belonged   to   Harbans   Singh (plaintiff).     As   noted   earlier,   this   property   as   per   the   family arrangement was given to Sohan Singh and has been so recorded in the memorandum of family settlement (Exhibit P­6).   The first appellate   Court   found   that   the   defendants   had   failed   to   prove that they  were in  possession  of  the suit property  or  remained  in possession   thereof.     On   the   other   hand,   the   evidence   on   record clearly established that the plaintiff was in possession of the suit property.     The   first   appellate   Court   then   interpreted   document 19 Exhibit P­6 and found that it was not with regard to khasra No. 935   (11­17),   but   it   referred   to   other   properties.     After   analysing the   relevant  evidence,  the   first  appellate  Court  held  that  Exhibit P­6   cannot   be   construed   as   a   document   containing   terms   and recitals   of   a   family   arrangement,   but   only   a   memorandum   of family arrangement.  It went on to observe as follows: ­ 16. …     Document   Ex.P­6   is   not   with   regard   to khasra   no.   395   (11­17)   but   other   property   is   also included   in   the   said   document.     A   plot   situated   in   Prem Basti   which   was   in   the   name   of   Harbans   Singh   and Gurcharan   Kaur   was   already   got   vacated   from   Mohan Singh   and   was   given   to   Sohan   Singh   and   Harjinder Singh.  A plot measuring 17 marlas which was purchased by Vikaramjit Singh was given to Manjit Kaur and Mohan Singh   and   Manjit   Kaur   DW­1  has  admitted  that   she   had already   sold   that   plot   to   Surjit   Kaur.     So   it   can   be concluded that said document was acted upon.  Although few   sentences   of   the   said   documents   are   in   the   present tense but  the  court  is  to see from   the  material on  record whether   the   said   document   created   right   in   the immovable property or rights were already created but the document was written by way of memorandum.  The said document   does   not   pertain   to   khasra   no.   935/1/1/1   (5­ 19)   but   entire   khasra   no.   935/1   (11­17).     Had   the   said document   created   right   in   khasra   no.   935/1/1/1   (5­19) then   there   was   no   question   of   throwing   khasra   no. 935/1/1/2   in   common   pool   and   other   property   of   the parties.   There is specific recital that on the basis of sale deeds Harbans Singh was owner in possession of the suit property   and   was   coming   in   possession   of   the   same. Harbans   Singh   has   constructed   16   shops   and   service station   there.     In   other   words,   it   proves   that   Harbans Singh was being considered as owner in possession of the   suit   property.     Prior   to   execution   of   the   said document on that day they compromised not to raise any   dispute   regarding   his   ownership.     So   this document was a writing with regard to fact which was already being considered and admitted by the parties. So   it   cannot   be   said   that   this   document,   copy   of 20 which is Ex.P­6 created right for the first time in the immovable property .   …..” (emphasis supplied) And again, as follows: ­ “16. …..    Since  the  parties  were   closely  related  to each other and document was executed with regard to the fact­which they were already admitting so I am of the   view   that   document   dated   10.3.1988   copy   of which   is   Ex.P­6   did   not   require   registration .     In   case Hans   Raj   cited   supra   the   matter   was   got   compromised and document itself created right in the property.  In case Hari   Singh   vs.   Shish   Ram   &   others   cited   supra   it   was held   that   document   between   the   parties   was   partitioned and consideration was passed from one party to other.  In Shishpal   vs.   Vikram   cited   supra   it   was   held   that   during life   time   of   Gyani   Ram   the   plaintiff   filed   suit   so   there could   not   be   any   family   settlement.     In   case   Smt. Karamjit Kaur and another versus Smt. Sukhjinder Kaur and others cited supra vide compromise the plaintiff and defendant no. 1 to 4 had agreed to take 30 bighas of land out   of   90   bighas   left   by   Mohinder   Singh   so   it   was   held that   said   compromise   has   created   right   in   favour   of defendants   no.   5   and   6   to   the   property   of   more   than Rs.100/­   So   require   registration.     All   the   above   said authorities   cited   by   counsel   for   defendants   are distinguishable   on   facts   and   ratio   of   said   authorities cannot be applied to the facts of the present case.   Since plaintiff   is   proved   to   be   in   existence   in   possession   of   the suit   property.     So   construction   of   shops   land   service station   on   the   said   property   was   done   by   the   plaintiff himself   and   not   from   funds   of   joint   family.     This   fact   is further   corroborated   by   writing   dated   10.3.1988   copy   of which   is   Ex.   P­6.     Since   said   document   did   not   require registration   so   plaintiff   is   proved   to   be   owner   of   the   suit property.     The   defendants   estopped   from   denying   the execution   of   the   family   settlement.     Defendants   have failed   to   prove   that   Harbans   Singh,   Mohan   Singh   and Sohan   Singh   constituted   Joint   Hindu   Family   Property and construction of the suit property was raised from the Joint Hindu Family Funds.  Thus, finding recorded by the learned Trial Court on issues No. 3, 5 and 7 are set aside and   it   is   held   that   the   plaintiff   constructed   shops   and service   station   and   boundary   wall   on   the   suit   property with   his   own   funds.     The   defendant   has   failed   to   prove 21 that property in dispute was purchased by the income of the   Joint   Hindu   coparcenary   property   and   Sohan   Singh, Mohan   Singh   and   Harbans   Singh   constituted   Joint family.     So   these   issues   are   decided   in   favour   of   the plaintiff.     Parties   executed   document   Ex.P­6   dated 10.3.1988   by   way   of   memorandum   of   family settlement   and   it   did   not   require   registration.     The defendants   are   estopped   from   denying   the   execution of   the   said   document   and   plaintiff   is   proved   to   be owner in possession of the suit land .   Issues No. 1 and 2 and 7 are also decided in favour of the plaintiff.   Since the  plaintiff  came  in possession  of  the  suit  property  with the   consent   of   the   defendants   and   his   possession   never become   adverse   to   the   interest   of   the   defendants   so finding   of   the   learned   trial   Court   on   issue   no.   4   is affirmed.” (emphasis supplied) 14. As noticed from the extracted portion of the judgment of the High Court in paragraph 12 above, it is amply clear that the High Court   has   not   dealt   with   the   factual   aspects   adverted   to   by   the first   appellate   Court   to   conclude   that   the   document   Exhibit   P­6 was   only   a   memorandum   of   family   settlement   and   not   a document   containing   the   terms   and   recitals   of   a   family settlement.  Being the former, no registration was necessary.  For which reason, relief claimed by the plaintiff founded on the family settlement   between   the   real   brothers   arrived   at   in   1970,   acted upon   without   any   exception   and   documented   on   10.3.1988, ought to follow.   22 15. The   first   appellate   Court   has   also   justly   opined   that   the parties   had   acted   upon   the   stated   family   settlement   and   if   we may   say   so,   to   the   prejudice   of   the   other   party.     In   that,   the property   in   the   name   of   plaintiff   at   Prem   Basti   was   given   to Sohan   Singh   (original   defendant   No.   2),   which   was   otherwise   in possession   of   Mohan   Singh   (original   defendant   No.   1).     Further, the   plot   purchased   by   the   plaintiff   in   the   name   of   his   son   was given to Mohan Singh (original defendant No. 1) and his wife, but that plot was admittedly sold by them to one Surjit Kaur.   Being a   case   of   a   family   settlement   between   the   real   brothers   and having   been   acted   upon   by   them,   it   was   not  open   to   resile   from the  same.   They  were estopped from  contending  to the contrary. This crucial aspect has been glossed over by the High Court and if   we   may   say   so,   the   second   appeal   has   been   disposed   of   in   a most   casual   manner.     Inasmuch   as,   the   impugned   judgment   of the High Court merely contains extraction of the judgment of the trial   Court   and   first   appellate   Court   and   of   the   relied   upon judgments   (precedents).     The   only   consideration   is   found   in   two concluding   paragraphs,   which   are   extracted   above   (paragraph 12).     Even   on   liberal   reading   of   the   same,   it   is   not   possible   to conclude   that   the   High   Court   in   exercise   of   its   appellate 23 jurisdiction (second appeal) had undertaken proper analysis and scrutiny   of   the   judgment   of   the   first   appellate   Court   in   right perspective,   much   less   keeping   in   mind   the   limited   scope   of jurisdiction  to  entertain  second appeal under   Section  100  of the Code   of   Civil   Procedure,   1908.     The   impugned   judgment   is bordering on a casual approach by the High Court in overturning the   well­considered   decision   of   the   first   appellate   Court. Although   the   impugned   judgment   runs   into   36   pages,   the manner   in   which   it   proceeds   leaves   us   to   observe   that   it   is cryptic.     We   say   no   more.     On   this   count   alone,   impugned judgment does not stand the test of judicial scrutiny. 16. Be that as it may, the High Court has clearly misapplied the dictum in the relied upon decisions.   The settled legal position is that   when   by   virtue   of   a   family   settlement   or   arrangement, members   of   a   family   descending   from   a   common   ancestor   or   a near   relation   seek   to   sink   their   differences   and   disputes,   settle and resolve their conflicting claims or disputed titles once and for all   in   order   to   buy   peace   of   mind   and   bring   about   complete harmony   and  goodwill in  the  family, such  arrangement ought to be   governed   by   a   special   equity   peculiar   to   them   and   would   be enforced if honestly made.   The object of such arrangement is to 24 protect the family  from long drawn litigation or  perpetual strives which   mar   the   unity   and   solidarity   of   the   family   and   create hatred and bad blood between the various members of the family, as   observed   in   Kale   (supra).     In   the   said   reported   decision,   a three­Judge Bench of this Court had observed thus: ­ “9. …..     A   family   arrangement   by   which   the   property   is equitably divided between the various contenders so as to achieve   an   equal   distribution   of   wealth   instead   of concentrating   the   same   in   the   hands   of   a   few   is undoubtedly   a   milestone   in   the   administration   of   social justice.   That   is   why   the   term   “family”   has   to   be understood   in   a   wider   sense   so   as   to   include   within   its fold not only  close relations or  legal heirs but even those persons   who   may   have   some   sort   of   antecedent   title,   a semblance   of   a   claim   or   even   if   they   have   a   spes successionis   so   that   future   disputes   are   sealed   for   ever and   the   family   instead   of   fighting   claims   inter   se   and wasting time, money and energy on such fruitless or futile litigation   is   able   to   devote   its   attention   to   more constructive   work   in   the   larger   interest   of   the   country . The   courts   have,   therefore,   leaned   in   favour   of upholding   a  family  arrangement  instead   of   disturbing the   same   on   technical   or   trivial   grounds.   Where   the courts find that the family arrangement suffers from a legal  lacuna   or  a  formal  defect  the   rule  of  estoppel  is pressed into service and is applied to shut out plea of the   person   who   being   a   party   to   family   arrangement seeks   to   unsettle   a   settled   dispute   and   claims   to revoke   the   family   arrangement   under   which   he   has himself enjoyed some material benefits . …..” (emphasis supplied) In   paragraph   10   of   the   said   decision,   the   Court   has   delineated the contours of essentials of a family settlement as follows: ­ “10.   In other words to put the binding effect and the essentials   of   a   family   settlement   in   a   concretised   form, 25 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   arrangement   may   be   even   oral   in which case no registration is necessary ; ( 4 )  It   is   well­settled   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   Section 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 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.” (emphasis supplied) 26 Again,   in   paragraph   24,   this   Court   restated   that   a   family arrangement being binding on the parties, clearly operates as an estoppel,   so   as   to   preclude   any   of   the   parties   who   have   taken advantage under the agreement from revoking or challenging the same.  In paragraph 35, the Court noted as follows: ­ “35. …   We have already pointed out  that  this Court has widened the concept of an antecedent title by holding that   an   antecedent   title   would   be   assumed   in   a   person who   may   not   have   any   title   but   who   has   been   allotted   a particular   property   by   other   party   to   the   family arrangement by relinquishing his claim in favour of such a   donee.   In   such   a   case   the   party   in   whose   favour   the relinquishment   is   made   would   be   assumed   to   have   an antecedent title. …..” And again, in paragraph 36, the Court noted as follows: ­ “36. …     Yet   having   regard   to   the   near   relationship which   the   brother   and   the   son­in­law   bore   to   the   widow the Privy Council held that the family settlement by which the   properties   were   divided   between   these   three   parties was a valid one. In the instant case also putting the case of  Respondents  Nos. 4  and  5 at the highest, the position is   that   Lachman   died   leaving   a   grandson   and   two daughters. Assuming that the grandson had no legal title, so   long   as   the   daughters   were   there,   still   as   the settlement   was   made   to   end   the   disputes   and   to   benefit all the near relations of the family, it would be sustained as a valid and binding family settlement. …” While rejecting the argument regarding inapplicability of principle of estoppel, the Court observed as follows: ­ “38. …   Assuming,   however,   that   the   said document   was   compulsorily   registrable   the   courts have   generally   held   that   a   family   arrangement   being binding   on   the   parties   to   it   would   operate   as   an 27 estoppel  by  preventing   the  parties  after  having   taken advantage   under   the   arrangement   to   resile   from   the same or try to revoke it . …..” (emphasis supplied) And in paragraph 42, the Court observed as follows: ­ 42. ..…    In these circumstances there can be no doubt that  even   if   the   family   settlement   was   not   registered it   would   operate   as   a   complete   estoppel   against Respondents Nos. 4 and 5 . Respondent No. 1 as also the High Court, therefore, committed substantial error of law in not giving effect to the doctrine of estoppel as spelt out by this Court in so many cases. …” (emphasis supplied) The   view   so   taken   is   backed   by   the   consistent   exposition   in previous decisions 8   referred to and duly analysed in the reported judgment.     The   question   formulated   by   the   High   Court,   in   our opinion, stands answered in favour of the appellants (plaintiff), in 8 Lala Khunni Lal vs. Kunwar Gobind Krishna Narain, ILR 33 All 356 Mt. Hiran Bibi vs. Mst. Sohan Bibi, AIR 1914 PC 44 Sahu Madho Das vs. Pandit Mukand Ram, AIR 1955 SC 481 Ram Charan Das vs. Girjanandini Devi, AIR 1966 SC 323 Tek Bahadur Bhujil vs. Debi Singh Bhujil, AIR 1966 SC 292 Maturi Pullaiah vs. Maturi Narasimham, AIR 1966 SC 1836 Krishna Biharilal vs. Gulabchand, (1971) 1 SCC 837 S. Shanmugam Pillai vs. K. Shanmugam Pillai, (1973) 2 SCC 312 Ramgopal vs. Tulshi Ram, AIR 1928 All 641 Sitala Baksh Singh vs. Jang Bahadur Singh, AIR 1933 Oudh 347 Mst. Kalawati vs. Sri Krishna Prasad, AIR 1944 Oudh 49 Bakhtawar vs. Sunder Lal, AIR 1926 All 173 Awadh Narain Singh vs. Narain Mishra, AIR 1962 Pat 400 Ramgouda Annagouda vs. Bhausaheb, AIR 1927 PC 227 Brahmanath Singh vs. Chandrakali Kuer, AIR 1961 Pat 79 Mst. Bibi Aziman vs. Mst. Saleha, AIR 1963 Pat 62 Kanhai Lal vs. Brij Lal, AIR 1918 PC 70 Dhiyan Singh vs. Jugal Kishore, AIR 1952 SC 145 T.V.R. Subbu Chetty’s Family Charities vs. M. Gaghava Mudaliar, AIR 1961 SC 797 Rachbha vs. Mt. Mendha, AIR 1947 All 177 Chief Controlling Revenue Authority vs. Smt. Satyawati Sood, AIR 1972 Delhi 171 (FB) Shyam Sunder vs. Siya Ram, AIR 1973 All 382 28 light of exposition of this Court in  Kale  (supra).  A priori, we have no   hesitation   in   affirming   the   conclusion   reached   by   the   first appellate Court that the document Exhibit P­6 was nothing but a memorandum   of   a   family   settlement.     The   established   facts   and circumstances   clearly   establish   that   a   family   settlement   was arrived at in 1970 and also acted upon by the concerned parties. That   finding   of   fact   recorded   by   the   first   appellate   Court   being unexceptionable,   it   must   follow   that   the   document   Exhibit   P­6 was  merely   a  memorandum   of  a  family   settlement  so  arrived  at. Resultantly, it was not required to be registered and in any case, keeping   in   mind   the   settled   legal   position,   the   contesting defendants   were   estopped   from   resiling   from   the   stated arrangement   in   the   subject   memorandum,   which   had   recorded the settlement terms arrived at in the past and even acted upon relating   to   all   the   existing   or   future   disputes   qua   the   subject property   amongst   the   (signatories)   family   members   despite absence of antecedent title to the concerned property. 17. As   regards   the   decision   in   Bhoop   Singh   (supra)   and   Som Dev   &   Ors.   vs.   Rati   Ram   &   Anr. 9 ,   the   same   dealt   with   the question   of   necessity   to   register   any   decree   or   order   of   a   Court 9 (2006) 10 SCC 788 29 governed   by   clause   (vi)   of   Section   17(2)   of   the   Registration   Act, 1908 10 .   In the present case, however, clause (v) of sub­Section 2 of   Section   17   of   the   1908   Act   is   attracted.     Section   17   as applicable when the cause of action arose (prior to amendment of 2001) reads thus: ­ “Part III OF REGISTRABLE DOCUMENTS 17. Documents of which registration is compulsory.­ (1)   xxx xxx xxx (2) Nothing   in   clauses   (b)   and   (c)   of   sub­section   (1) applies to –  (i) xxx xxx xxx (ii) xxx xxx xxx (iii) xxx xxx xxx (iv) xxx xxx xxx (v) any   document   not   itself   creating, declaring,   assigning,   limiting   or   extinguishing any   right,   title   or   interest   of   the   value   of   one hundred   rupees   and   upwards   to   or   in immovable  property,  but  merely  creating  a  right to   obtain   another   document   which   will,   when executed,   create,   declare,   assign,   limit   or extinguish any such right, title or interest; or …..” 18. In our considered view, reliance placed by the High Court on the   decisions   of   this   Court   will   be   of   no   avail   to   alter   or   impact the   conclusion   recorded   by   the   first   appellate   Court.     As aforementioned,   in   Bhoop   Singh   (supra)   and   Som   Dev   (supra), the   Court   was   dealing   with   the   issue   of   compulsory   registration 10 For short, “the 1908 Act” 30 of   a   decree   or   order   of   Court.     In   the   context   of   the   applicable clause   (vi)   in   sub­Section   (2)   of   Section   17,   the   Court   in   Bhoop Singh  (supra) went on to hold as follows: ­ “18. The   legal   position   qua   clause   ( vi )   can,   on   the basis   of   the   aforesaid   discussion,   be   summarised   as below: (1)  Compromise   decree   if   bona   fide,   in   the   sense that   the   compromise   is   not   a   device   to   obviate payment   of   stamp   duty   and   frustrate   the   law   relating to   registration,   would   not   require   registration.   In   a converse situation, it would require registration. (2) If   the   compromise   decree   were   to   create   for   the first   time   right,   title   or   interest   in   immovable   property of   the   value   of   Rs.100   or   upwards   in   favour   of   any party   to   the   suit   the   decree   or   order   would   require registration. (3) If   the   decree   were   not   to   attract   any   of   the clauses   of   sub­section   (1)   of   Section   17,   as   was   the position in the aforesaid Privy Council and this Court's cases, it is apparent that the decree would not require registration. (4) If   the   decree   were   not   to   embody   the   terms   of compromise,   as   was   the   position   in   Lahore   case , benefit   from   the   terms   of   compromise   cannot   be derived,   even   if   a   suit   were   to   be   disposed   of   because of the compromise in question. (5) If   the   property   dealt   with   by   the   decree   be   not the   “subject­matter   of   the   suit   or   proceeding”,   clause ( vi ) of sub­section (2) would not operate, because of the amendment   of   this   clause   by   Act   21   of   1929,   which has   its   origin   in   the   aforesaid   decision   of   the   Privy Council,   according   to   which  the   original  clause   would have   been   attracted,   even   if   it   were   to   encompass property not litigated.” In the present case, as noted earlier clause (v) of Section 17(2) is attracted,  which   pertains   to   execution   of   any   document   creating or  extinguishing  right, title or  interest in an immovable property 31 amongst the family members.   Thus, the dictum in   Kale   (supra) is attracted in the fact situation of this case. 19. Considering the above, we have no hesitation in concluding that the High Court committed manifest error in interfering with and   in   particular   reversing   the   well­considered   decision   of   the first appellate Court, which had justly concluded that document dated   10.3.1988   executed   between   the   parties   was   merely   a memorandum of settlement, and it did not require registration.  It must follow that the relief claimed by the plaintiff in the suit, as granted   by   the   first   appellate   Court   ought   not   to   have   been interfered   with   by   the   High   Court   and   more   so,   in   a   casual manner, as adverted to earlier.   20. Having   said   that,   it   is   unnecessary   to   examine   the alternative   plea   taken   by   the   plaintiff   to   grant   decree   as   prayed on   the   ground   of   having   become   owner   by   adverse   possession. For   the   completion   of   record,   we   may   mention   that   in   fact,   the trial Court had found that the possession of the plaintiff was only permissive possession and that finding has not been disturbed by the  first  appellate  Court.   In  such a  case,  it is doubtful  that  the 32 plaintiff can be heard to pursue relief, as prayed on the basis of his alternative plea of adverse possession.   21. Be   that   as   it   may,   we   deem   it   appropriate   to   set   aside   the impugned judgment and restore the judgment and decree passed by the first appellate Court in favour of the plaintiffs (appellants herein). 22. Accordingly,   this   appeal   is   allowed.     Impugned   judgment and   decree   of   the   High   Court   is   set   aside.     The   judgment   and decree passed by the first appellate Court is restored in favour of the plaintiff (appellants herein).  Decree be drawn up accordingly. There   shall   be   no   order   as   to   costs.     Pending   interlocutory applications, if any, shall stand disposed of. ..................................J.   (A.M. Khanwilkar) ..................................J.            (Dinesh Maheshwari) New Delhi; July 31, 2020.