IMPORTANT POINTS
Benami transaction – what is?
Fiduciary relationship discussed.

JUDGMENT

T.S. Thakur, J.-This appeal by special leave arises out of a judgment and order passed by the High Court of Karnataka at Bangalore whereby OS No.3119/90 filed by the respondents for a declaration to the effect that they are co- owners of the suit property and for an injunction restraining the defendant- appellant from interfering with their possession has been decreed. The factual backdrop in which the suit is filed may be summarised as under: The suit property comprises a residential house bearing Municipal No.33, A and B Block, Austin Town, Bangalore47 which was originally owned by the Corporation of the city of Bangalore. The said property was leased by the Corporation to late Smt. Stella Martins-mother of the parties before us. In the year 1978 the Corporation took a decision to sell the said property and presumably similar other properties to those in occupation of the same. The State Government also approved the said proposal with a note of caution that care should be taken to correctly identify the occupants of the property being sold. Before a sale could be effected in her favour, Stella Martins passed away in November, 1982 leaving behind her husband Sri C.F. Martins, their daughters (respondents in this appeal) and the appellant who happens to be the only son of his parents. The case of the plaintiffs-respondents is that the Corporation desired that transfer of the tenancy rights held by Smt. Stella Martins should be made to only one individual out of the several legal representatives left behind by the deceased. It was for that reason that the husband of the deceased-tenant and the daughters-respondents herein all consented to the transfer of the tenancy rights in favour of the appellant.

In due course the Corporation raised a demand for a sum of Rs.48,636/- towards consideration for the sale of the suit property to the appellant who held the tenancy rights. The case of the plaintiffs-respondents before us is that in order to satisfy the said demand Sri C.F. Martins-father of the parties in this appeal, transferred a sum of Rs.35,636/- to an account jointly held by respondent no.1 and her husband for purchasing a bank draft in order to satisfy the Corporation’s demand referred to above. A demand draft for a sum of Rs.48,636/- was eventually purchased on 13th November, 1986 by debit to the saving account of respondent no.1 and her husband and paid to the Corporation on the 14th November, 1986. A sale deed was on payment of the sale consideration, executed in favour of the appellant on 26th June, 1987. The plaintiffs-respondents further case was that Sri C.F. Martins-plaintiff no.1 executed a registered will on 16th August, 1989 whereby he bequeathed his entire estate including the suit schedule property equally to all his children. An affidavit setting out the circumstances in which the suit schedule property was transferred in favour of the appellant was also sworn by the father of the parties on 15th November, 1989.

A dispute relating to the suit schedule property having arisen between the parties including Sri C.F. Martins, their father, the latter filed a criminal complaint in December 1989 followed by OS No.3119 of 1990 in the Court of VI Additional City Civil Judge, Bangalore, praying for a declaration to the effect that the plaintiffs were co-owners in the schedule property to the extent of their contribution and praying for an injunction restraining the defendant-appellant herein from interfering with the possession of plaintiff nos.1 and 2 over the same.

In the written statement filed by the defendant-appellant, it was, inter alia, alleged that the entire sale consideration towards purchase of the schedule premises was provided by him, which made him the absolute owner of the suit property. On the pleadings of the parties, the Trial Court framed the following issues for determination:

1. Whether the plaintiffs prove that plaintiffs and defendant contributed the purchase money of suit site?

2. Wh