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12/4/2018 Settlement deeds can now be conditional, says circular - The Hindu

TAMI L NADU

Settlement deeds can now be conditional, says circular


Parents are free to cancel transfer of assets to wards if the terms are not ful lled

An elderly couple walked into the office of the Sub-Registrar in Pattukottai in Thanjavur district recently with a petition to seek
cancellation of the property that they transferred to their son.

The grievance of the visibly frail couple was that their son abandoned them at the behest of his wife and was not even giving them
money for medicines. The Sub-Registrar could only take pity on the elderly duo since cancellation of the settlement deed could
not be done unilaterally. The father had not laid down any conditions at the time of transferring the property to his son.

This is one among several cases where abandoned parents go to the Registration Department or move court seeking revocation of
transfer of immovable assets, a senior official in the Registration Department said. But the rule is clear that unconditional
settlement deeds cannot be cancelled unilaterally. Against this and in the wake of several court judgments, the Tamil Nadu
Registration Department has issued a circular which enables the settlor to lay down the terms and conditions while transferring
the property to settlee.

If the conditions are not fulfilled, the settlor can revoke the deed unilaterally.

Based on past rulings


The order relies on various judgments of the Madras High Court where the point that “the Sub-Registrar is not the competent
authority to register the unilateral cancellation of settlement deed” had been emphasised. The circular was sent to all Sub-
Registrars on Friday.
Settlement deeds with conditions may not be considered for sale or loans unless the settlor is also a party in application, says
Tamil Nadu Registration Department Officials Association president S.E. Vasudhevan. “Many parents give their property to their
children out of love and affection. In the event of such love and affection fading away due to various reasons, the parents will have
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12/4/2018 Settlement deeds can now be conditional, says circular - The Hindu

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12/4/2018 Settlement deeds can now be conditional, says circular - The Hindu

S. Vijay Kumar
CH EN N AI, DECEMBER 03, 201 8 01 :02 IS T
U PDATED: DECEMBER 03, 201 8 01 :02 IS T

no right to take back the property. We have come across many such cases. Now there is a provision for the parents to lay conditions
that they should be allowed to stay with children, taken good care etc,” he says.

Lack of awareness
Mr. Vasudhevan says there is lack of awareness among elderly people who simply sign registration deeds transferring all they
have to children. “Many parents who have given assets worth several crores of rupees are now living in old age homes.”
He said settlement deeds need not be necessarily within the family. When an outsider is the settlee, the stamp duty and
registration fee would be more.

According to the Inspector-General of Registrations J. Kumaragurubaran said the clarification order was based on a Supreme
Court order in the Narmadaben Maganlal Thakker and Reninkuntla Rajamma Vs K. Sarwanamma case in which a donor had
executed a gift deed imposing certain conditions to be fulfilled by the donee, and which was subsequently cancelled unilaterally
by the donor.

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12/4/2018 Settlement deeds can now be conditional, says circular - The Hindu

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be-conditional-says-circular/article25650155.ece

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