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2019 Supreme(SC) 388

UDAY UMESH LALIT, INDU MALHOTRA
Pawan Kumar – Appellant
Versus
Babulal Since Deceased Through Lrs. – Respondent


Advocates Appeared:
For the Appellant :Mr. Abhishek Gupta, Advocate
For the Respondent:Ms. Rohini Musa, Advocate, Mr. R.K. Singh, Advocate, Ms. Neeraj Singh, Advocate, Mr. Kumar Gaurav, Advocate, Ms. Ritu Beniwal, Advocate, Mr. P. Dayal, Advocate, Mr. Rameshwar Prasad Goyal, Advocate and Mr. Milind Kumar, Advocate

Judgement Key Points

Based on the provided legal document, here are the key points:

  • Legal Principle: A disputed question regarding whether a plea of ownership of property is barred by Section 4(3)(b) of the Benami Transactions (Prohibition) Act, 1988, cannot be decided under Order VII Rule 11 of the Code of Civil Procedure, 1908; such matters require fuller consideration after evidence is led by the parties. (!) (!) (!)
  • Case Outcome: The appeal filed by Pawan Kumar against the High Court's dismissal of his suit was allowed; the application under Order VII Rule 11 CPC was dismissed, and the trial was directed to be expedited. (!) (!)
  • Factual Background: The appellant filed a suit for declaration of title and cancellation of a sale deed, claiming he purchased a shop in his father's name using his own funds to show respect to his aging father, with a notarized document acknowledging the appellant's sole ownership. (!) (!) (!) (!) (!)
  • Procedural History: Nine years after the suit was filed, the second defendant applied for rejection of the plaint under Order VII Rule 11 CPC, arguing the suit was barred by the Benami Act. The trial court initially allowed this application and rejected the plaint. (!) (!) (!)
  • High Court Decision: The High Court dismissed the appellant's appeal, holding that the suit was clearly hit by Section 4 of the Benami Act because the plaintiff claimed to have purchased the property in his father's name without joint ownership or fiduciary intent as per the Act's exceptions. (!) (!)
  • Key Evidence: A document dated 14.03.2002 executed by the appellant's father stated that the property was purchased by the appellant (the elder son) with his own income, registered in the father's name only out of respect, and that the father and his successors had no rights in the property. (!) (!)
  • Legal Interpretation of "Fiduciary Capacity": The court noted that "fiduciary capacity" implies a relationship of trust and confidence where one acts for the benefit of another, similar to a trustee-beneficiary relationship, and must be determined based on the factual context. (!) (!) (!) (!)
  • Precedents Relied Upon: The judgment relied on Marcel Martins v. M. Printer (2012) 5 SCC 342 and CBSE v. Aditya Bandopadhyay (2011) 8 SCC 497 to interpret fiduciary relationships and the scope of the Benami Act. (!) (!) (!) (!)
  • Order VII Rule 11 Application: The court cited Popat and Kotecha Property vs. State Bank of India Staff Association (2005) 7 SCC 510, stating that disputed questions regarding legal bars on suits cannot be decided at the initial stage of an Order VII Rule 11 application and require full trial evidence. (!) (!)
  • Directives: The trial court was directed to dispose of the pending suit within six months, with the merits to be decided independently after evidence is led. (!) (!)

JUDGMENT :

Uday Umesh Lalit, J.

Leave granted.

2. This appeal questions the final judgment and order dated 18.08.2017 passed by the High Court of Judicature for Rajasthan at Jaipur in SBRFA No. 511 of 2016.

3. The appellant filed a suit for declaration of title with respect to premises in Kasba Fatehpur's main market which were more particularly described in the plaint and prayed that he be declared owner of the premises and that the sale deed dated 24.07.2006 executed by the first defendant in favour of the second defendant be cancelled. The material averments in the plaint were:

(a) A shop in said premises was held by the first defendant, namely, father of the appellant on rent from the erstwhile owner;

(b)The first defendant having become old, it was the appellant who had been looking after the entire business;

(c) The erstwhile owner had filed suit for possession which matter came right upto this Court;

(d) There was a compromise between the erstwhile owner and the first defendant under which the premises where the shop is situate, were agreed to be sold in favour of first defendant;

(e) The first defendant was not having enough money and as such it was the appellant who arranged all th



















































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