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1979 Supreme(SC) 537

SUPREME COURT OF INDIA
P.N. SHINGHAL AND E.S. VENKATARAMIAH, JJ.
Bhim Singh (dead) by L. R. s and another, Appellants
versus
Kan Singh, Respondent and vice versa.
Civil Appeals Nos. 626 and 629 of 1971
Decided on 21-12-1979.
Advocates appeared
Mr. S. T. Desai, Sr. Advocate (Mr. Naunit Lal Advocate with him), for Appellant; Mr P.R. Mridul, Sr. Advocate (M/s. B. P. Sharma, Krishna Bhatt and R. K. Bhatt Advocates with him), for Respondent.
* R. F. A. No. 31 of 1960, D/- 5-8-1970 (Raj)

Advocates:
B.P.Sharma, KRISHNA BHATTACHARYYA, Navnit Lal, P.R.MRIDUL, R.K.Bhalt, S.T.DESAI

Headnote:Benami transactions

       – Two types of benami transactions are recognized. Where a person buys a property with his own money but in the name of another person without any intention to benefit such other person, the transaction is called benami. In that case, the transferee holds the property for the benefit of the person who has contributed the purchase money, and he is the real owner. The second case which is loosely termed as a benami transaction in a case where a person who is the owner of the property executes a conveyance in favour of another without the intention of transfering the title to the property thereunder. In this case the transferee continues to be the real owner. The difference between the two kinds of benami transactions referred to lies in the fact that whereas in the former case there is an operative transfer from the transferor to the transferee though the transferee holds the property for the benefit of person who has contributed the purchase money, in the latter case, there is no operative transfer at all and the title rests with the transferor notwithstanding the execution of the conveyance. One common feature, however, in both these cases is that the real title is divorced from the ostensible title and they are vested in different persons.

JUDGMENT

VENKATARAMIAH, J. :— These two cross appeals by certificate arise out of a suit for possession of a house situate in Bikaner and for damages for use and occupation thereof filed in Civil Original Case No. 17 of 1957 on the file of the District Judge, Bikaner. The plaintiffs in the suit are the appellants in Civil Appeal No. 626 of 1971 and the defendant is the appellant in Civil Appeal No. 629 of 1971. The genealogy showing the relationship between the parties is given below:

2. Gad Singh, Bharat Singh, Bhim Singh (plaintiff No. 1) and Kan Singh (defendant) are the sons of Sur Singh. Bharat Singh died unmarried in September, 1995. Gad Singh died thereafter leaving behind him three sons, Duley Singh, Dhaney Singh and Deep Singh. Dalip Singh, the second son of plaintiff No. 1 died in September, 1956, Bharat Singh and the defendant were residing in the house which was the subject matter of the suit. After the death of Bharat Singh, the plaintiffs Bhim Singh and Himmat Singh filed the suit out of which this appeal arises against Kan Singh, the defendant for recovery of possession of the suit house and other ancillary reliefs. In the plaint, they pleaded that the suit house belonged to them by virtue of a patta dated July 12, 1940 issued in their names; that the defendant who was the brother of plaintiff No. 1 and uncle of plaintiff No. 2 was living in a part of the house with their consent; that plaintiff No. 2 and his younger brother Dalip Singh were also living in the house till the year 1956; that the defendant had refused to receive a notice issued by them in the month of September, 1957 calling upon him to hand over possession of the house to the plaintiffs; that the defendant had done so on account of personal ill will and that the plaintiffs were, therefore, entitled to recover possession of the suit house and damages from the defendant. These were briefly the allegations made in the plaint. On the above basis, the plaintiffs prayed for a decree for the reliefs referred to above.

3. In the written statement, the defendant did not admit the existence of the patta on the basis of which the plaintiffs claimed title to the suit house. He denied the allegation that the plaintiffs were the owners in possession of the suit house. He claimed that he was the exclusive owner of the suit house, and in support of the said claim stated as follows :-

4. There was a partition amongst the sons of Sur Singh in the year 1929. At that partition, Gad Singh and plaintiff No. 1 became separated and they were given all the family properties which were situated in their village, Roda. As Bharat Singh and the defendant had been educated at the expense of the family, they were not given any share in the property, Bharat Singh and he settled in Bikaner and lived together as members of joint Hindu family. Bharat Singh died on September 2, 1955 leaving the defendant as a surviving coparcener. On his death the defendant became the owner of the properties of Bharat Singh as a member of joint Hindu family. He further pleaded that from the year 1928, Bharat Singh and he who were working as the Aide-de-Camp and Private Secretary respectively of the Maharaja of Bikaner were living in the suit house which then belonged to the Maharaja. The defendant filed an application for purchasing the house. The proceedings had not terminated when the defendant left the services of the Maharaja and went to Banaras for higher studies. On his return from Banaras, he joined the service of the Maharaja in the civil department of Bikaner. After a long time on account of the joint efforts of Bharat Singh and the defendant, the sale of the house was sanctioned. Bharat Singh who was living jointly with him paid the consideration for the sale on November 4, 1939 out of the joint income. Thus according to the defendant, Bharat Singh and he became its owners from the date of payment of the consideration. He further pleaded that if the patta of the property had been granted in













































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