PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988,

Section 2(9)

Benami transactions - Interlocutory application for rejection of counter claim - Son gave money to parents to purchase property - Whether parents holding property in trust

Parents transferred property one daughter (AN). Sons (VK) and (AK) filed suit against the parents for declaration that the property was owned by Joint Hindu Family, therefore, the property was divided equally. However, another son (RK) filed counter claim to obtain a declaration of being real or benami owner of the property on ground that he had given money to his parents to purchase the property, which they got registered in their name, but actually property belonged to him. Daughter, in whose favour the property was transferred, filed interlocutory application for rejection of the counter claim on the ground that if entitlement was proved, then, Son (RK) was entitled for recovery of money along with interest. Held: The parents might be a trustee of a minor son but not of a major son and thus question of transaction being within exception to benami did not arise. Therefore, Son (RK) could not have taken plea that the parents were holding the property in trust or for his benefit. Further that, no particulars of the parents standing in any fiduciary capacity to son (RK) were disclosed. Thus, there was no cause of action or entitlement of son (RK) to obtain a declaration of being real or benami owner of property.

REFERRED : Mahesh Karwal v. Satya Devi 2018 SCC OnLine Del 12090; Amar N. Gugnani v. Naresh Kumar Gugnani 2015 SCC OnLine Del 11248

FAVOUR : Interlocutory Application allowed

A.Y. :

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