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Judgment
MANMEET PRITAM SINGH ARORA: (ORAL)
I.A. 43672/2024 (Joint application of parties under Order XXIII Rule 3 CPC for compromise of the suit)
This is a joint application filed by the parties under Order XXIII Rule 3 of the Code of Civil Procedure, 1908 (‘CPC’) for mutual partition of the estate (movable and immovable assets) of late Mr. Vineet Malhotra, who passed away intestate on 28.04.2024. in accordance with Oral Family Settlement dated 19.10.2024, which settlement is stated to have been formally recorded in the Memorandum of Family Settlement (MoFS) dated 24.10.2024.
The Plaintiff No.1 is the wife and the Plaintiff Nos. 2 & 3 are minor sons of late Mr. Vineet Malhotra. The Defendant No.1 is the mother, Defendant No. 2 is the father and Defendant No.3 is sister of late Mr. Vineet Malhotra.
Plaintiff Nos. 1, 2 and 3 along with Defendant No. 1 are the only Class I legal heirs of late Mr. Vineet Malhotra as per Section 8 of the Hindu Succession Act, 1956.
The application records that the parties have entered into an Oral Family Settlement on 19.10.2024 with respect to the dissolution of the estate (movable and immovable assets) of late Mr. Vineet Malhotra.
It is stated that the parties have also executed a MoFS dated 24.10.2024 which records in the writing the terms and conditions of the Oral Family Settlement dated 19.10.2024.
The application records that as per the settlement, 1/4th share of Defendant No.1 in the entire estate of late Mr. Vineet Malhotra has been relinquished by her equally and absolutely in favour of the Plaintiff Nos. 1 to 3.
The material terms of the application read as under:
“4.In terms of the Oral Family Settlement reached between the parties and recorded in the Memorandum of Family Settlement, the 1/4th share of the Defendant No. 1 in the entire estate of late Mr. Vineet Malhotra, including immovable and movable properties as detailed in the plaint, now stands devolved equally and absolutely in favour of the Plaintiffs No. 1 to 3. As a consequence, thereof, the Plaintiffs No. 1 to 3 have become joint, equal and absolute owner of the estate of late Mr. Vineet Malhotra, having 1/3rd share each therein. The Defendant No. 1 has been left with no right, title or interest in the estate of late Mr. Vineet Malhotra.
5.That the Plaintiffs, therefore, jointly, equally and absolutely own the following properties owned by late Mr. Vineet Malhotra in their individual rights:
i.1/6th share each in the Flat No. 608, Devika Towers, Nehru Place, New Delhi, admeasuring 440 square feet, and any rental income arising therefrom.
ii.1/18th share each in the Property bearing no. SCO Plot No. 7, Sector 14, Gurugram, admeasuring 334.44 square, and any rental income arising therefrom.
iii.1/3rd share each in the Servant Quarter in the stairs alongwith bathroom in the Property bearing no. 12, Uday Park, New Delhi along with and any rental income arising therefrom.
iv 1/3rd share each in the Flat no. 116, Universal Trade Tower, Sohna Road, Sector 49, Gurgaon, admeasuring 750 sq. feet.
v.1/3rd share each in the Flat no. 117, Universal Trade Tower, Sohna Road, Sector 49, Gurgaon, admeasuring 750 sq. feet.
vi.1/3rd share each in the Equity shares, securities and investments held by late Mr. Vineet Malhotra in his following Demat Accounts with:
a. Axis Securities Limited (DP ID: , Client ID: ),
b. Globe Capital Market Limited (DP ID: , Client ID: ),
c. DBS Bank India Limited, Connaught Place, New Delhi (with Investment ID: ).
vii.1/3rd share each in the investments held by late Mr. Vineet Malhotra in the following mutual funds:
a. Nippon India Mutual Fund, DSP Focus Fund Regular Plan- Growth (Folio No. ) with DBS Bank India Limited, Connaught Place, New Delhi (with Investment ID: ).
b. ICICI Prudential Floating Interest Fund- Growth (Folio No. ),
c. ICICI Prudential Multicap Fund- Growth (Folio No. ),
d. Aditya Birla Real Estate Fund,
e. Aviva Life Mutual Fund,
f. IL & FS Milestone Fund - I,
g. IL & FS Milestone Fund- II,
h. ICICI Prudential Signature Mutual Fund,
i Franklin India Flexi Cap Fund- IDCW (Folio No.
viii.1/6th share each in the joint Mutual Fund Investment held by late Mr. Vineet Malhotra with Defendant No.3 in the HDFC Mutual Fund Folio No. .
ix.1/3rd share each in the Savings Bank Accounts held by late Mr. Vineet Malhotra, details whereof are as follows:
a. Savings Bank bearing no. along with fixed deposits therein, in UCO Bank having branch at Delhi High Court, Sher Shah Road, New Delhi.
b. Savings Bank bearing no. along with fixed deposits therein, in Standard Chartered Bank having branch at D-33 Defence Colony, New Delhi.
c. Savings Bank bearing no. along with fixed deposits therein, in IndusInd Bank having branch at SCO-7, Sector 14, Gurgaon.
d. ½ share in Joint Savings Bank bearing no. held by late Mr. Vineet Malhotra with Plaintiff No. 1 along with fixed deposits therein, in HDFC Bank having branch at D-23, Defence Colony, New Delhi.
e. Savings Bank bearing no. along with fixed deposits therein, in Bank of Baroda having branch at Defence Colony, New Delhi.
f. ½ share in Joint Savings Bank bearing no. held by late Mr. Vineet Malhotra with Defendant No. 1 along with fixed deposits therein, in HDFC Bank having branch at D-23, Defence Colony, New Delhi.
x.1/3rd share each in the Life Insurance Policies;
xi.1/3rd share each in any other asset of late Mr. Vineet Malhotra at the time of his demise.
6.That the parties have agreed that the Defendant No. 3 shall continue to own her 1/2 share in the Flat No. 608, Devika Towers, Nehru Place, New Delhi, admeasuring 440 square feet and HDFC Mutual Fund (bearing Folio No. [REDACTED], which was jointly held by late Mr. Vineet Malhotra and Defendant No.3), as a co-owner.
7.Similarly, the patties have agreed that the Defendant No. 1 and 2 shall also continue to own their 1/6th share each in the Property bearing no. SCO Plot No. 7, Sector 14, Gurugram, admeasuring 334.44 square metres, as was before. Similarly, the remaining ½ share in Joint Savings Bank Account bearing no. [REDACTED] (held jointly by late Mr. Vineet Malhotra and Defendant No.1) along with fixed deposits therein, in HDFC Bank having branch at D-23, Defence Colony, New Delhi continues to vest with the Defendant No. 1. Further, the remaining ½ share in Joint Savings Bank Account bearing no. [REDACTED] held by late Mr. Vineet Malhotra with Plaintiff No. I along with fixed deposits therein, in HDFC Bank having branch at D-23, Defence Colony, New Delhi continues to vest with the Plaintiff No. I.
8.That the parties have agreed that the Plaintiff No. 1 is entitled to operate the demat accounts held by late Mr. Vineet Malhotra with Axis Securities Limited (DP ID: [REDACTED], Client ID: [REDACTED]), Globe Capital Market Limited (DP ID: [REDACTED], Client ID: [REDACTED]), and DBS Bank India Limited, Connaught Place, New Delhi (with Investment ID: [REDACTED]), and deal with the equity shares, securities and investments held therein for herself and on behalf of the Plaintiff No.2 and Plaintiff No. 3. The Plaintiff No. 1 is further entitled to operate the Bank Accounts and deal with the monies deposited therein for herself and on behalf of the Plaintiff No. 2 and Plaintiff No. 3. Similarly, the Plaintiff No. 1 is entitled to deal with the Mutual Funds, HDFC Mutual Fund and monies realized from Life Insurance Policies for herself and on behalf of the Plaintiff No. 2 and Plaintiff No.3. The parties confirm and declare that they have no objection to operation of the aforementioned accounts and assets by the Plaintiff No.1."
The Plaintiff No.1, Defendant Nos. 1, 2 and 3 are all present in Court and they confirm the Oral Family Settlement dated 19.10.2024 arrived between the parties in execution of MoFS.
This Court has interacted with the parties and they confirm due execution of the said settlement and satisfaction with the terms and conditions recorded therein.
Plaintiff Nos. 2 and 3 are minor. Plaintiff No. 1 is their mother and thus, their natural legal guardian. The parties agree that Plaintiff No. 1 has no interest adverse to Plaintiff Nos. 2 and 3 and, therefore, she can enter into this settlement on behalf of Plaintiff Nos. 2 and 3. In the facts of this case, in fact, Defendant No. 1 is relinquishing her 1/4th share in favour of Plaintiff Nos. 1 to 3, therefore, this Court is satisfied that this settlement agreed between the parties is beneficial for Plaintiff Nos. 2 and 3. Accordingly, Plaintiff No. 1 is appointed as the legal guardian of Plaintiff Nos. 2 and 3 and his hereby permitted to enter into this settlement agreement with Defendants on their behalf.
This Court has perused the MoFS and is satisfied that the same is lawful and there is no impediment in decreeing the present suit in terms of the MoFS.
Accordingly, the present suit is hereby decreed in terms of the MoFS dated 24.10.2024, which shall form part of this order. It is hereby declared that Plaintiff Nos. 1, 2 & 3 have succeeded to the estate of late Mr. Vineet Malhotra absolutely and to the exclusion of Defendant Nos. 1 to 3. It is further recorded that Defendant No.1 has hereby relinquished all her right, title and interest in the estate (movable and immovable assets) of late Mr. Vineet Malhotra absolutely and equally in favour of Plaintiff Nos.1 to 3.
It is further recorded that the Defendant Nos. 2 and 3 do not claim any right, title or interest in the estate (movable and immovable assets) of late Mr. Vineet Malhotra.
Learned counsel for the Plaintiffs seeks directions to the banks and financial institutions and depository for transferring/liquidating or operating the Demat accounts, Fixed Deposit Accounts, Savings Accounts and Mutual Funds as per the instructions of Plaintiff No. 1. Learned counsel for Defendant also joins the request. In view of the fact that the entire estate has devolved upon Plaintiff Nos. 1 to 3 and Plaintiff No. 1 is the legal guardian of Plaintiff Nos. 2 and 3, the following directions are issued to the banks and financial institutions.
Late Mr. Vineet Malhotra held demat accounts with three (3) entities details whereof are enlisted in quoted paragraph 5 (vi) of the application. The Plaintiff No.1 hereby will approach the said entities/depository for transmission request within a period of two (2) weeks from today along with a copy of this order and upon receiving the said transmission request. Upon receipt of the request, the said financial institutions/depository will take appropriate steps for transferring the said account in favour of the Plaintiff No.1 in the demat account held by Plaintiff No.1 expeditiously.
Similarly, Plaintiff No.1 will be at liberty to approach all the financial institutions and banks along with a copy of this order where late Mr. Vineet Malhotra held his Fixed Deposits, Mutual Fund accounts and saving bank accounts to operate and/or liquidate the said account in accordance with applicable rules. Upon receipt of request from Plaintiff No. 1, the banks and financial institutions will process the request expeditiously.
With the aforesaid directions, the suit stands decreed. The registry is directed to draw up a decree and as noted above, the MoFS is dated 24.10.2024 shall form part of the said decree. The decree is directed to be drawn up within four (4) weeks.
The digitally signed copy of this order, duly uploaded on the official website of the Delhi High Court, www.delhihighcourt.nic.in, shall be treated as a certified copy of the order for the purpose of ensuring compliance. No physical copy of order shall be insisted by any authority/entity or litigant.
Pending applications stands disposed of.
At the request of the parties, amount/account details have been redacted from this order.