SUPREME COURT OF INDIA
G.L. OZA AND K.N. SAIKIA, JJ.
Mithilesh Kumari and another, Appellants
Versus
Prem Behari Khare, Respondent.
Civil Appeal No. 2311 of 1978
Decided on 14-2-1989.
Benami Transactions (Prohibition) Act, 1988, Secs. 3 & 4 - Reading the language of the provisions the same is prospective and not retrospective - Appeal is continuance of the suit the appellate court would take into consideration the legislative charges and even facts and events which have come into existences after the passing of the decree appealed against-The expressions "any property held benami" in section 4(2) and "shall not be" in section 4(1) means that the real owner is bereft of any defence against the person in whose name the property is held or any other person - Such language envisages past benami transaction also within its retrospectivity - When an Act is declaratory in nature the presumption against retrospectiveity is not applicable-This Act only declares-The presumption against taking away vested right will not apply in as much as under the law it is the benamidar in whose name the property stands, and law only enables the real owner to recover the property from him which right has now been ceased by the Act-Where the remedy is barred. the right is rendered uneforceable and is thus disabling-All real owners are equally affected by the disability provisions irrespective of the time of creation of the right-A right is a legally protected interest-The real owner's right is not protected and the Act has resulted in removal of the protection (Para 22 to 24)
Code of Civil Procedure Sec., 107 - Actus curiaeneminem graribit means that no should suffer for an act of the court - Delay in disposal of an appeal is not all action of the court.
(Para 26)
Interpretation of Statute - Language in statute-When language is clear and unambiguous it must be given effect to-Parliament has jurisdiction to pass a declaratory legislation - As a result of prohibition which prescribes penal consequences as well prohibits the right to defence - At a result of such provisions at the date of the Act it comes into force which may affect irrespective of their beginning, duration and origin - This will he so even if the legislation is not retrospective but only retroactive - A retrospective effect can not be given to a statute so as to impair existing right or obligation, otherwise than as regards matters of procedure unless effect can not be avoided without doing violence to the language of the enactment - Before applying a statute to he retrospective the court has to be satisfied that the statute is in effect retrospective-The presumption against retrospective operation is strong in case in which the statute would prejudicially affect vested rights or the illegality of the transaction or impare contracts or impose new duly or attach new disability in respect of part transactions or considerations already passed-There is no invariable rule that a statute could not be retrospective unless so expressed in the very terms of the section which had to be construed-Courts can look to the reports of the Law Commission to find out the true interest and object of the legislature.
JUDGMENT
K. N. SAIKIA, J. :— This appeal by special leave is from the judgment and order dated 27-3-1978 of the High Court of judicature at Allahabad (Lucknow Bench), in second appeal No. 130 of 1975, dismissing the appeal and upholding the decree of the plaintiff-respondents suit.
2. The plaintiff-respondent Prem Behari Khare instituted suit No. 42 of 1971 in the Court of Civil Judge, Mohanlal Gunj, Lucknow praying for the reliefs, inter alia, that he be declarel to be the sole and real owner of the suit house; and that the defendant-appellant be, permanently restrained from transferring the suit house. The learned Civil Judge, Lucknow, by his judgment dated 13-3-1974 decreed the suit declaring the plaintiff to be the sole and real owner of the suit house and permanently restraining the defendant from transferring the suit house to any other person. On first appeal by the defendant-appellant the learned Additional District Judge, Lucknow by his judgment dated 23-12-1974 dismissed the appeal agreeing with the findings of the trial court that it was the plaintiff-respondent who paid the consideration and purchased the suit house benami in the name of the defendant- appellant who, therefore, had no right to create any equitable mortgage or to transfer the suit house. The defendant-appellants second appeal thereafter was also dismissed by the High Court of Judicature at Allahabad by the impugned judgment dated 27-3-1978. Hence this appeal by special leave.
3. Mr. X. B. Rohtagi learned counsel for the appellant submits, inter alia, that the learned courts below erred in holding that the suit house was not gifted by the plaintiff to the defendant but was held benami in her name; and that even if it was so held benami, the subsequent legislation, namely, the Benami Transactions (Prohibition) Act, 1988, has put a complete bar to the plaintiffs suit against the defendant in respect of the suit house.
4. Mr. Yogeshwar Prasad learned counsel for the respondent refutes submitting that the issues on gift and benami have been concluded by concurrent findings of fact of the learned courts below; and that the plaintiffs right to the benami suit house having already become final, it will not be affected by the subsequent Act.
5. The first question, therefore, is whether or not to interfere with the concurrent findings of fact of the learned Courts below. It has been said in a series of decisions that ordinarily this Court in an appeal will not interfere with a finding of fact which is not shown to be perverse or based on no evidence, (Babu v. Dy. Director of Consolidation, AIR 1982 SC 756), but will interfere if material circumstances are ignored by the High Court. Prasad v. Govindaswami, AIR 1982 SC84. In Dhanjibhai v. State of Gujarat, AIR 1985 SC 603 it was observed that where a finding of fact has been rendered by a learned single Judge of the High Court as a Court of first instance and thereafter affirmed in appeal by an Appellate Bench of that High Court, this Court should be reluctant to interfere with the finding unless there is very strong reason to do so. There is no reason why this should not apply to cases where the first appellate Court was the district Court. It was noted in Ganga Bishan v. Jay Narayan, AIR 1986 SC 441 that ordinarily this Court, under Article 136 of the Constitution, would be averse to interfere with concurrent findings of fact recorded by the High Court and the Trial Court. But where there are material irregularities affecting the said findings or where the Court feels that justice has failed and the findings are likely to result in unduly excessive hardship this Court could not decline to interfere merely on the ground that findings in question are findings on fact. So also in Uday Chand Dutt v. Saffial Sen, AIR 1988 SC 367 it was said that in an appeal by special leave under Article 136 of the Constitution of India where there are concurrent findings of the Courts below this Court is not called upon to reconside
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