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Home » Blog » SC: Out of court settlements should be given more importance.
Judgments

SC: Out of court settlements should be given more importance.

By Palak Arora 3 Min Read
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RAVINDER KAUR V GAGANDEEP SINGH, CIVIL APPEALS NO(S). 9167-9168 OF 2018 [@ SPECIAL LEAVE PETITION (C) NO. 15872-15873 OF 2016] Decided on 06/09/2018

BENCH: A two-judge bench of the Apex Court decided this case, headed by:-

  • JUSTICE KURIAN JOSEPH
  • JUSTICE SANJAY KISHAN KAUL

FACTS:The parties were in litigation for more than two decades involving the issue of family partition between close family members having scope of settlement but parties were unable to reach to a common solution so the Supreme Court .

 The High Court was requested to defer the hearing which was later referred to the Supreme Court Mediation Centre where there was no success in the proceedings. As a result the matter came up to the Supreme Court and another attempt was made to make peace between the parties. Later it came to the light that there were other litigations too between the parties which were settled out.

A comprehensive report was submitted by the learned mediator which formed a part of the judgement. These appeals are disposed of in terms of the settlement as recorded at paragraph 20 of the Report, which is acceptable to both the parties. All other litigations referred to in Paragraph 14 are also disposed of in terms of the settlement, as indicated in the Report of the learned mediator. The settlement shall form part of the decree

CONTENTIONS: Parties contented that they should be given their part of the property after partition according to law supported by legal decree.

OBSERVATIONS: It was observed by the Supreme Court that it is of no use but a waste of time and money being indulged in the process of litigation instead of settling the matter outside the court. In this way relations, money and time all will be preserved. As a result they encouraged the parties to go to mediation centre and even requested the senior counsel to help the parties to come to a common point without fighting in the court but using the power of co-operation, understanding and love.

CONCLUSION: The appeals were disposed of as all the issues, involved in every litigation, were settled outside the court by the way of mediation. And the settlement was made a part of the decree. It was made clear that the payments involved in the Terms of Settlement, being part of a partition among the members of the family, shall not attract any tax by way of capital gains.

For full judgement refer: https://www.supremecourt.gov.in/supremecourt/2016/19896/19896_2016_Judgement_06-Sep-2018.pdf

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Palak Arora September 9, 2018
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