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Delhi High Court guideline for drafting Settlement Agreement in Matrimonial Disputes.

Guideline issued by Hon'ble Delhi High Court for drafting settlement agreement in Matrimonial Disputes.

This Hon'ble High Court of Delhi in Sh. Chhatter Pal & Ors Vs. State & Anr, CrL. M. C. 6197/2019 issued guideline for drafting settlement agreement in matrimonial disputes. The Hon'ble High Court said that:

"42. Having discussed the significance of process of mediation in resolution of a dispute, especially those arising out of family and matrimonial cases, and having taken note of complexities that can arise due to inadequate drafting, inconsistencies, omissions or oversights within a settlement agreement achieved between parties subsequent to a successful mediation, this Court deems it appropriate to lay down following guidelines in relation to drafting of a Mediated Settlement Agreement, in addition to the guidelines laid down:"

(i) Specify Names of Parties:

The agreement must specifically contain names of all the parties to the agreement.

(ii) Avoid Ambiguous Terms:

The terms such as 'respondent', 'respondents', 'petitioner' or 'petitioners', in absence of their names in the agreement must be avoided in an agreement as it leads to ambiguities and further litigation.

(iii) Include All Details:

The terms and conditions of the agreement reached between the parties, howsoever small and minute they may be, must be incorporated in the agreement.

(iv) Timeline For Compliance:

The timeline of the fulfilment of terms and conditions as well as their execution must be clearly mentioned. There should be no tentative dates as far as possible.

(v) Default Clause:

A default clause should be incorporated in the agreement and the consequences thereof should be explained and enlisted in the agreement itself.

(vi) Mode of Payment:

In case any payment is to be made as per settlement, the agreement should specify the method of payment agreed upon between the parties which should also be as per their convenience i.e. electronic mode, by way of a Demand Draft or FDR and the necessary details for fulfilment of this condition.

(vii) Follow-Up Documents:

The agreement should also stipulate as to which Follow-up documents are to be prepared and signed by which party. It may also be mentioned as to when, where, how and at whose cost such documents are to be prepared in furtherance of the terms of the agreement, as far as possible.

(viii) Cases involving 498A IPC:

Further, especially in cases of matrimonial disputes, where one of the conditions in the Agreement is to cooperate in quashing of FIR, such as those under Section 498A IPC, and filing of affidavit and appearing in the Court for the purpose of the same, it is advisable that the agreement must stipulate the names of all the parties concerned who have been named in the FIR specifically and the fact that the claims have been settled in totality for quashing of entire FIR and proceedings emanating therefrom qua all persons named in the FIR. It be also clarified specifically that the FIR will be quashed in totality against all the persons arrested, not arrested, chargesheeted, not chargesheeted, with their names and whether the entire FIR will be quashed against all of them upon payment by husband or any other person on behalf of the husband.

(ix) Criminal Complaints/Cross-cases:

Criminal Complaints filed by parties against each other, pending trial or investigation should also find specific mention with names of all the parties, the Court concerned, and as to how the parties intend to deal with them. The number/details of the complaint, FIR, Sections under which they have been filed, should also be mentioned specifically.

(x) Read and Understood:

The agreement should necessarily mention that all the parties have read and understood the contents of the settlement agreement in their vernacular language.

(xi) Signing of Agreement:

In case only one or some parties are present during mediation proceedings and only their signatures are obtained on the agreement, it be clearly mentioned and clarified that the agreement is being signed on behalf of those relatives or parties also even in case they are not present, in case the agreement is qua them too and they are not present in person due to age, ailment, distance or any other reason. It is important to do so since in matrimonial offences, the near and distant relatives may, due to above reasons, not be present in person but agreements are reached in totality, especially regarding quashing of FIRs and criminal proceedings and withdrawal of complaints.

(xii) Clarity of Language:

At last, the language used in a settlement agreement must be definite enough to understand the real intention of the parties and the goals they wish to achieve by entering into the agreement.

In addition to the conditions above the Hon'ble High Court directed for preparation of Mediated Settlement Agreements in Hindi as given below:

"i. Preparation of Mediated Settlement Agreements in Hindi
46. It is, therefore, directed that concerned In-charge of Mediation Centres will ensure that the mediated settlement agreements are prepared in Hindi language also, in addition to English language, as far as possible. It is being directed since in majority of cases, the parties do not comprehend English and their spoken language and mother tongue is Hindi. However, in cases the parties are well-versed in English language and want the agreement to be in English language only, there will be no such insistence or requirement."

Download the full Judgment of guideline issued by Hon'ble Delhi High Court for drafting settlement agreement in Matrimonial Disputes - Sh. Chhatter Pal & Ors Vs. State & Anr, CrL. M. C. 6197/2019

Legal Formats, Alphabetical Order

Agreement Formats

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Agreement for License for commercial property, Office space

Agreement for Lease of Residential House, Rent agreement Residential Accommodation

Agreement, Collaboration with builder for construction  or developer for construction

Agreement, seasonal job contract, temporary employee appointment agreement

Agreement, Family compromise, Property dispute settlement agreement

Agreement, Employee full and final payment and settlement document.

Agreement to Sell format for Sale of Property

Agreement for Retail Business, Sample

Agreement Between Contractor and Principal Employer for Work outsource

Agreement, Husband and Wife for divorce proceedings and settlement of Disputes

Agreement for reference of dispute to Arbitrator by parties on mutual consent

Agreement to refer dispute of three parties to Arbitrator by mutual consent u/s 7 of Arbitration and Reconciliation Act

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Agreement for Arbitration and to appoint sole Arbitrator

Delhi High Court guideline for drafting Settlement Agreement in Matrimonial Disputes

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Hire Purchase Agreement owner, hirer and dealer for Purchase of Vehicle under Hire Purchase Act 1972

Hypothecation Agreement between Creditor and Borrower under sarfaesi act 2002

Loan Agreement format to lend money to borrower by Lender with or without interest

Loan Agreement format for Loan with Pledge of shares as security and with interest

Loan Agreement format with Surety and without security

Loan Agreement with Surety and Hypothecation of Property

Memorandum of Understanding between Lender and Borrower to give loan

Bond to issue succession certificate under Section 375 of Indian Succession Act 1925

Administration Bond under Section 291 of Indian Succession Act 1925

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Agreement for design and development of a website by software company for a client

Confidential information and non disclosure agreement format

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Agreement to sell a Business including space

Office facility and Services Business Agreement

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Appointment letter to appoint employee with confidentiality agreement

Consultant Appointment letter to appoint Professional Consultant on retainer ship

Agreement to appoint sole selling agent by Manufacturing Company

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