Builders’ Agreement Cannot Alter Shares Fixed Via a Family Settlement: Delhi High Court

The Delhi High Court held that a Memorandum of Family Settlement (MFS) need not be registered as it does not create new rights but only records the manner of enjoyment of property.

A Division Bench of Justices Kshetarpal and Harish  Shankar ruled that once family members’ shares are identified through an MFS, a subsequent builder’s agreement for construction cannot modify or override those shares. 

The Court rejected the appellants’ contention that the MFS required registration and stamping, citing Kale v. Deputy Director of Consolidation (1976).

The Court further clarified that modification under Section 62 of the Contract Act was not applicable. The appeal was dismissed.

[Suman Singh Virk & Anr. v Deepika Prashar & Anr.]