Question And Answer
Subject: whether memorandum of Family Arrangement drawn in plain paper which is not stamped , is valid ?
Querist: Santosh Ghosh
Answered by:
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Date: May 11, 2021
Query asked by Santosh Ghosh

Is it compulsory to prepare Joint Hindu Family agreement in Stamp paper only?
Unstamped HUF agreement is invalid?

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Answer given by

A Memorandum of Family Arrangement recording the oral arrangement made does not require to be executed on a Stamp paper. The Supreme Court in Kale and Ors. v. Deputy Director of Consolidation and Ors. (1976) 3 SCC 119 has held as under:
β€œIt is well-settled 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;”

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