Family Settlement – Governed By A Special Equity Principle

In Hari Shankar Singhania v. Gaur Hari Singhania, (2006) 4 SCC 658 it was held as under:

            “A family settlement is treated differently from any other formal commercial settlement as such settlement in the eye of the law ensures peace and goodwill among the family members. Such family settlements generally meet with approval of the courts. Such settlements are governed by a special equity principle where the terms are fair and bona fide, taking into account the well – being of a family.             Technicalities of limitation, etc. should not be put at risk of the implementation of a settlement drawn by a family, which is essential for maintaining peace and harmony in a family.” Tilak Raj Bakshi v. Avinash Chand Sharma, (2020) 15 SCC 605.