Recently the Hon’ble Supreme Court has prescribed guidelines with respect to execution and legal position regarding the necessity of registering family settlements in the case of Ravinder Kaur Grewal and Ors. vs. Manjit Kaur and Ors. MANU/SC/0570/2020:
“(1) Compromise decree if bona fide, in the sense that the compromise is not a device to obviate payment of stamp duty and frustrate the law relating to registration, would not require registration. In a converse situation, it would require registration.
(2) If the compromise decree were to create for the first time right, title or interest in immovable property of the value of Rs. 100 or upwards in favour of any party to the suit the decree or order would require registration.
(3) If the decree were not to attract any of the clauses of Sub-section (1) of Section 17, as was the position in the aforesaid Privy Council and this Court’s cases, it is apparent that the decree would not require registration.
(4) If the decree were not to embody the terms of compromise, as was the position in Lahore case, benefit from the terms of compromise cannot be derived, even if a suit were to be disposed of because of the compromise in question.
(5) If the property dealt with by the decree be not the “subject-matter of the suit or proceeding”, Clause (vi) of Sub-section (2) would not operate, because of the amendment of this Clause by Act 21 of 1929, which has its origin in the aforesaid decision of the Privy Council, according to which the original Clause would have been attracted, even if it were to encompass property not litigated.”