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Settlement Agreement between husband and wife for finalization of divorce proceedings. Agreement to settle financial, custody, maintenance and legal dispute.

Format of Settlement agreement between husband and wife to settle financial and legal dispute and end married life. Download format.

 

A Settlement Agreement is a post-matrimonial agreement through which the couple mutually decides to separate their way without the help of any judicial intervention. Therefore, without any divorce petition or decree for judicial separation, the couple part their ways.

The most noteworthy point is, separation agreements is entered after getting into the union of marriage. Consequently, in a separation agreement married couple decides on the issue of maintenance, child custody, property division without any judicial intervention. In India, a Settlement agreement is considered against public policy. Hence, courts do not give emphasis to such agreement.

Sample format of Settlement agreement is given below:

 

 

WITHOUT PREJUDICE

SETTLEMENT/AGREEMENT

This Deed of Settlement/Agreement is executed on this ___ day of ____, ___ at New Delhi by and between:

Ms. __________, W/o Shri __________, R/o ___________, New Delhi- 1100__ (hereinafter referred to as the "First Party").

AND

Mr. ______________, S/o Shri ______________, R/o _________, New Delhi- 1100__ (hereinafter referred to as the "Second Party").

The expressions "First Party" and "Second Party", unless repugnant to the context shall mean and include their respective legal heirs, nominees, assignees, representatives, administrators, etc. The First Party and the Second Party are collectively referred to hereinafter as the "Parties".

WHEREAS the marriage between both the parties was solemnized on _____ at ___, ______ in accordance with Hindu Rites and ceremonies.

AND WHEREAS the marriage between the parties was duly consummated and no child is born from the said wedlock between the parties.

AND WHEREAS the parties have been living separately since _________ and there is no relationship between the parties as that of a husband and wife since _______.

AND WHEREAS the marriage between the parties has broken down due to irreconcilable differences, temperamental differences, differences in outlook and compatibility and as such they have decided to part ways by seeking divorce by mutual consent.

AND WHEREAS after separation, the First Party filed a complaint under Section 12 of the Protection of Women from Domestic Violence Act, 2005 before the Learned Metropolitan Magistrate (Mahila Court), Patiala House Courts, Delhi seeking, inter-alia, from the Second Party a decree for compensation and maintenance. The said complaint filed by the First Party is currently pending adjudication before the Court of Ms. _________, Learned Metropolitan Magistrate (_________), Patiala House Courts, , Delhi and is coming up for hearing on _________.


AND WHEREAS during the pendency of the aforementioned cases, the parties have voluntarily arrived at an amicable solution resolving all their disputes and they have agreed to get their marriage dissolved by a decree of divorce by mutual consent as envisaged under Section 13 B (1) and 13 B (2) of the Hindu Marriage Act, 1955 (hereinafter referred to as "the Act") in terms of the present Settlement/Agreement.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. That it has been agreed between the parties that they shall get their marriage dissolved by a decree of divorce by way of mutual consent by filing petitions under Section 13 B (1) and 13 B (2) of the Hindu Marriage Act, 1955 upon the terms contained in the present Agreement. It is agreed between the parties that the petition under Section 13 B (1) shall be filed within seven working days of the signing and execution of the present Agreement before the Learned Principal Judge, Family Courts, ________, Delhi. The parties further undertake that subject to fulfillment of the terms of the present Settlement/Agreement, the parties shall file the Second Motion Petition under Section 13 B (2) of the Hindu Marriage Act, 1955 within a period of 14 working days upon the expiry of the statutory period of limitation of six months from the date of filing of First Motion Petition under Section 13 B (1) of the Hindu Marriage Act, 1955. Both the parties undertake that they shall not withdraw their consent to proceed with the filing of the Second Motion Petition and seeking divorce by way of mutual consent subject to the fulfillment of the terms of the present Settlement/Agreement.

2. That the Second Party has agreed to pay a total sum of Rs.__________/- (Rupees ________ Only) (hereinafter referred to as the "settlement amount") to the First Party towards full and final settlement of all her claims including but not limited to istridhan articles/jewellery, if any, maintenance, past, present and future, permanent alimony, marriage expenses, etc. The said settlement amount shall be paid to the First Party by the Second Party in the following manner:-

a). It has been agreed between the parties that the Second Party shall pay a sum of Rs._______________/- (Rupees __________ Only) at the time of recording of the statement of the parties before the Learned Family Court concerned in the First Motion Petition under Section 13 B (2) of the Hindu Marriage Act, 1955 by way of Demand Draft/Pay Order.

b). It has been further agreed between the parties that within seven days and in any case no later than ____ of recording the statement of the parties before the Learned Family Court concerned in the First Motion Petition under Section 13 B (2) of the Hindu Marriage Act, 1955, the First Party shall file the appropriate application and take necessary measures to withdraw the complaint filed by her under Section 12 of the Protection of Women from Domestic Violence Act, 2005 before the concerned Metropolitan Magistrate (Mahila Court) such that the complaint along with its grievances, remedies sought from/against the Second Party and allegations shall stand withdrawn by the First Party. It has been further agreed between the parties that the First Party, upon receipt of Rs. __________/- (Rupees ______Only) from the Second Party at the time of recording of the statement of the parties in the First Motion Petition before the concerned Family Court and upon withdrawal of her complaint under Section 12 of the Protection of Women from Domestic Violence Act, 2005, shall not file any further complaint, petition or application against the Second Party concerning the events relating to their marriage.

c). It has been agreed between the parties that the Second Party shall the remaining sum of Rs.__________/- (Rupees ___________ Only) out of the total settlement amount of Rs. ________/- (Rupees _________ Only) at the time of recording of the statement of the parties before the Learned Family Court concerned in the Second Motion Petition under Section 13 B (2) of the Hindu Marriage Act, 1955 by way of Demand Draft/Pay Order.

3. That the First Party undertakes to withdraw the complaint filed by her under Section 12 of the Protection of Women from Domestic Violence Act, 2005 which is pending before the Court of Ms. _________, Learned Metropolitan Magistrate (Mahila Court), Patiala House Courts, Delhi within seven days and in any case no later than __ from recording of the statement of the parties in the First Motion Petition under Section 13 B (2) filed before the concerned Family Court.

4. That it is also agreed between the parties pursuant to the receipt of the aforesaid amount of Rs.____________/- (Rupees __________ Only), all the claims of the First Party qua the Second Party and his family members/relatives shall stand satisfied and extinguished.

5. That it is also agreed between the parties that pursuant to the First Party receiving the DD/pay order of Rs. ________/- (Rupees _________ Only) presented to her by the Second Party, the First Party shall, within three months (3 months) upon receipt of the DD/Pay order, vacate from House Number ______________, New Delhi  ____ along with her complete belongings. The First Party shall be responsible entirely for all arrangements relating to her vacating the said premises. Further, it is agreed between the parties that the First Party shall be entitled, at the time of vacating the said premises, to take along with her all of her belongings lying at the said premises and the Second Party shall not make any objections in respect thereof.

6. It is also agreed between the Parties that upon receipt by the First Party of the DD/Pay for Rs. ________/- (Rupees ________ Only) at the time of recording the statement of parties in the First Motion Petition, neither the First Party nor any member of her family, relative, agent, successor or assign shall claim any right, title or interest whatsoever in House Bearing No. _________________, New Delhi  1100__.

7. That both the parties shall cooperate and sign all necessary documents for the purposes of obtaining divorce by mutual consent and render all assistance for the expeditious disposal of the same and shall undertake to appear before the Family Court, Patiala House Courts, Delhi for recording of their statements for the purposes of obtaining divorce by mutual consent. It is agreed between the parties that they shall not withdraw their consent for recording of statement under Section 13 B (1) and 13 B (2) of the Hindu Marriage Act, 1955.

8. That pursuant to engrossing their signatures on the present Settlement Deed/Agreement and fulfillment of all the terms of the present Settlement, the First Party and the Second Party shall not interfere in the lives of each other in any manner including personal, oral, written, electronic or telephonic contact and also will not make any allegation against each other and/or their respective family members.

9. That the First Party after the receipt of the sum of Rs._____________/- (Rupees ___________ Only) subject to the aforementioned clauses, will not claim any further amount towards past, present and future maintenance, compensation, alimony or expenditure from the Second Party or his family members or relatives. It is also agreed between the parties that pursuant to receipt of Rs.____________/- (Rupees _________ Only), the First Party shall not be entitled to claim any amount from the Second Party. All the claim (s), if any, raised by the First Party qua the Second Party and his family members shall stands extinguished and the First Party shall be estopped in law to file any such claim and in case any such claim is filed by the First Party, the same shall stand dismissed and withdrawn and shall also tantamount to committing breach of the undertaking given by the First Party. Likewise, the Second Party shall also not lay any claim or compensation towards the First Party or her relatives.

10. That the First Party hereafter shall have no claim towards istridhan, jewellery and personal belongings and undertakes not to raise any claim in respect of the same against the Second Party or his parents and relatives, etc. subject to payment of settlement amount.

11. That both the parties agree and undertake that subject to the fulfillment of the terms of the present Agreement, they shall have no claim or right qua any immovable or movable properties of the other party or against the family members of the other party whether self-acquired, HUF or ancestral under any circumstances now or in future, immediately in view of the present Settlement. The First Party agrees and undertakes that she has and shall have no claim for maintenance, stridhan or permanent or temporary alimony against the Second Party subject to the receipt of settlement amount of Rs._________/- in compliance of the Settlement Deed and that she shall seek gainful employment.

12. That the present Settlement Deed is effective and enforceable from the date of its execution and shall remain effective and binding and form part of the decree for mutual consent.

13. That it has also been agreed between the parties that they will adhere to the terms and conditions of this Settlement and will do all acts necessary for the expeditious compliance of the same and shall cooperate with each other and sign all the relevant documents required for the purposes of obtaining divorce by mutual consent.

14. That the parties hereinabove have taken a decision to break their matrimonial ties keeping in view their future welfare and better prospects.

15. That the contents of this Settlement Deed/Agreement have been read over to the parties and they have been explained the terms of this Settlement Deed/Agreement and they have understood the same to be true and shall be governed by the same.

16. That both the parties have executed this Settlement Deed/Agreement without any force, undue influence or coercion from any quarter, and both the parties shall be estopped in law to assail the validity of any clause/term of the Settlement on the ground of the same being void or unlawful subject to the payment of the entire settlement amount in terms of the present Settlement/Agreement.

17. That both the parties to the present Settlement Deed/Agreement undertake that they shall duly perform and abide by all the terms and conditions as contained in the present Settlement Deed/Agreement and in case of breach of any of the terms and conditions as envisaged hereinabove, the parties are liable to be punished under the provisions of Contempt of Courts Act, 1971.

18. That neither the parties nor any of their representatives, executors, assigns, successors, administrators, etc. would at any time, even in future, challenge these terms and conditions, on any ground, whatsoever, and/or in any manner, whatsoever, and would always remain bound by them.

19. That it is clearly understood by the parties that they are entering into and executing this Full and Final Settlement Deed bonafide, voluntarily and out of their own free will and consent, without any force, pressure, duress, threat, fraud, coercion, misrepresentation, collusion or undue influence, whatsoever, and the parties accept this Full and Final Settlement Deed as fair, just and equitable and also as final, conclusive and binding on them, their representatives, executors, assigns, successors, administrators, etc. and they have further bound themselves to do all what would be necessary to give full and complete effect to it. Further, the parties have confirmed and undertaken that they were given sufficient time and opportunity to consult their legal counsels of their choice and it is only after said consultations with the counsels of their choice, after full understanding of the effect of the terms and conditions of the present Settlement Deed.

20. That all the disputes and differences between the parties have been fully and finally settled. Nothing shall be now due from either party to the other on any account, whatsoever, except under the present Settlement. It is also agreed between the Parties that neither party shall file against the other, or against their family, relative, successor or assigns any suit, plaint, case, petition, application, complaint or report in relation to events arising out of their matrimonial life.

IN WITNESS WHEREOF both the parties have signed this Settlement Deed/Agreement at the place and on the day, month and year first above written in the presence of the following witnesses.

FIRST PARTY

SECOND PARTY

WITNESSES:
1.



2.


 

About Settlement Agreements

A separation agreement does not hold a plausible ground regarding validity as well as enforceability under Indian legal system. The Indian Courts on various instances have ruled out the concept of the separation agreement between husband and wife.

There is no mention of Settlement Agreement in the Hindu Marriage Act. The act neither allows nor negates the enforceability of a separation agreement.

Many times, the courts have stated that a separation agreement has no legal sanctity. But this does not mean that it is worthless. The Settlement agreement paints a picture of intention of the parties.

A significant percentage of cases in Indian court dealing with the issue of a Settlement agreement are cases where the Indian couples have lived for a considerable time in a foreign land.

The Hindu law upon the subject of Settlement agreement still retains its archaic character. Marriage in that law is not merely a contract but also a sacrament, and the rights and duties of the married parties are determined solely by the law and are incapable of being varied by their agreement.


 

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