Arrangement whether transfer

[gopalkannegolla]

Sir
There are two groups of parties owning two properties side by side, they had dispute on the extent of the holding and each other dispute with the other on the issue of encroachment.

1st group own 4000 sq yards of land
2nd group own 3000 sq yards of land

these two groups are not form the same family and do not have any family relation

Their disputes are in courts pending finalization

now they want to come to a arrangement as under

1st group will receive 3000 yards which is in its name and 500 yards in the name of the 2nd group and for go the 500 yards to the second group.

2nd group will get 2500 sq yards in its own name and 1000 yards in the name of the 2nd group.

1st group will get 2 crores for the 500 sq yards forgone by it.

this is being done by way of arbitration out side the court in form of an arrangement.

will there be any transfer of capital asset taxable to capital gain tax. 

can we claim this arrangement as an family arrangement even if they are not from the same family an can treat it as a transaction not falling in the definition of transfer.