Supreme Court Settles Longstanding Property Dispute Through Mediation

The Supreme Court of India, in the case of Smt. Kalpana Majumder & Ors. vs. Smt. Lakshmi Priya Shaw & Ors., resolved a two-decade-long civil dispute involving multiple litigations. The Court facilitated a settlement through mediation and quashed all pending criminal cases between the parties.

Background of the Case

The case involved a protracted legal battle over property rights that had been ongoing since 2002. Over the years, both parties engaged in several legal proceedings, including five criminal cases related to the property dispute. The appellants sought ownership of the disputed property, while the respondents contested the claims based on various transactions and legal standing.

When the matter came before the Supreme Court, the Court noticed a possibility of settlement and appointed Ms. Varuna Bhandari, a trained Mediator, to assist in resolving the dispute. The Mediator facilitated more than 35 hours of discussions between the parties, eventually leading to an amicable resolution.

Key Legal Issues Considered

Whether the property dispute could be resolved through mediation rather than prolonged litigation.
Whether the Supreme Court could quash pending criminal cases as part of a settlement.
The enforceability of the settlement agreement reached between the parties.
The authority of the District Sub Registrar to process the property transfer per the settlement terms.

Arguments Presented

Arguments by the Appellants (Smt. Kalpana Majumder & Ors.)

The appellants argued that the prolonged litigation had caused significant hardship and that settlement was in the best interest of all parties.
They sought the execution of a property transfer in their favor, as per the settlement agreement.
They also requested the Supreme Court to quash the pending criminal cases to ensure a complete resolution of the dispute.

Arguments by the Respondents (Smt. Lakshmi Priya Shaw & Ors.)

The respondents agreed to the settlement terms, recognizing that continued litigation would be costly and time-consuming.
They consented to the transfer of property and closure of all pending criminal cases.
The respondents sought clarity on the stamp duty applicable for the property transfer.

Supreme Court’s Observations

The Supreme Court acknowledged the extensive efforts of the Mediator and emphasized the importance of dispute resolution through mediation:

“Thanks to the strenuous efforts taken by the learned Mediator, we are happy to note that the parties have settled their entire disputes and have filed the application for direction(s) along with the Deed of Settlement dated 16.07.2018.”

The Court recognized that the resolution of the dispute through mediation served the interests of justice and helped in reducing the burden on the judiciary.

Final Judgment

The Supreme Court ruled:

In view of the Deed of Settlement dated 16.07.2018, all disputes between the parties were deemed settled.
The following criminal cases were quashed to secure the ends of justice:

Lake P.S. Case No. 23 of 2008
Lake P.S. Case No. 255 of 2012
Lake P.S. Case No. 56 of 2009
C Case No. 4342 of 2008
Shakespeare Sarani P.S. Case No. 314/2013, 340 of 2013, and 397 of 2013

The District Sub Registrar, Alipore, West Bengal was directed to register the transfer of the disputed property in favor of the appellants: Mrinal Kanti Majumder, Mrs. Kalpana Majumder, Mrs. Bani Saha, and Mr. Uttam Saha.
To ensure fairness, the Court ordered that stamp duty applicable in 2002 be levied instead of the current rate.
The Deed of Conveyance dated 01.03.2005, confirmed in 2008, was declared cancelled.
All parties were directed to abide by the terms and conditions of the Deed of Settlement.

Impact of the Judgment

This ruling highlights the judiciary’s support for mediation as a viable alternative to prolonged litigation. The decision has the following implications:

Encouragement of Alternative Dispute Resolution: The case sets a precedent for resolving property disputes through mediation rather than court battles.
Judicial Efficiency: The resolution of a 16-year-old dispute through mediation helps reduce the backlog of cases.
Legal Recognition of Mediation Settlements: The Court’s ruling reinforces the legitimacy of mediated agreements in civil litigation.
Fair Property Transfer Terms: By allowing the 2002 stamp duty rate, the Court ensured that neither party faced undue financial hardship.

Legal Precedents Considered

The Supreme Court relied on several past rulings, including:

Salem Advocate Bar Association vs. Union of India (2005) – Recognized mediation as an effective dispute resolution mechanism.
Afcons Infrastructure Ltd. vs. Cherian Varkey Construction Co. (2010) – Encouraged courts to refer disputes to mediation where possible.
Gian Singh vs. State of Punjab (2012) – Held that courts can quash criminal proceedings in the interest of justice.

Conclusion

The Supreme Court’s ruling in Smt. Kalpana Majumder & Ors. vs. Smt. Lakshmi Priya Shaw & Ors. demonstrates the judiciary’s commitment to resolving disputes amicably. By facilitating mediation, quashing criminal cases, and directing a fair property transfer, the Court ensured justice was served in a manner beneficial to all parties. This case sets a valuable precedent for mediation in complex civil disputes.

Petitioner Name: Smt. Kalpana Majumder & Ors..
Respondent Name: Smt. Lakshmi Priya Shaw & Ors..
Judgment By: Justice Kurian Joseph, Justice Sanjay Kishan Kaul.
Place Of Incident: West Bengal, India.
Judgment Date: 17-07-2018.

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