IN THE HIGH COURT AT CALCUTTA
BISWAJIT BASU, J.
Smt. Karabi Chowdhury (Since Deceased)Rajat Chowdhury & Anr. – Appellants
Versus
Dhananjay Chowdhury – Respondents
S.A. No. 110 of 2013, CAN 08 of 2022
Decided on : 22-03-2024
Benami Transaction - Property Dispute - The Benami Transactions(Prohibition) Act, 1988 - Section 4(3)(b)
Fact of the Case:
The suit involved a dispute over a piece of land and a building, with the plaintiff claiming absolute title and seeking eviction of the defendants, who contended that the property was purchased for the benefit of the entire family.
Finding of the Court:
The court found that the burden of proof for a benami transaction lay with the defendants, who failed to demonstrate that the purchase money came from the father. The court also held that the defendants' claim of Sikmi tenancy was not admissible as it was not pleaded or advanced at any stage before the lower courts.
Issues: The issues revolved around the burden of proof for a benami transaction, the nature of joint family property, and the admissibility of a new plea of law based on undisputed and proven facts.
Ratio Decidendi: The burden to prove a benami transaction lies with the party claiming it, and the existence of joint family property does not automatically imply joint ownership. Additionally, a new plea of law can be raised based on undisputed and proven facts, provided it does not unfairly prejudice the opposing party.
Final Decision: The second appeal and the connected application were dismissed, with costs to be borne by the respondent.
JUDGMENT :
Biswajit Basu, J.
1. The instant second appeal is at the instance of the defendants in a suit for eviction of licensees and other consequential reliefs being Title Suit No. 50 of 2010 and is directed against the appellate decree dated November 30, 2012 passed by learned Additional District Judge, Fast Track(I) Islampur, District-Uttar Dinajpur in Title Appeal No. 12 of 2012 thereby reversing the decree dated April 30, 2012 passed by the learned Civil Judge (Senior Division) Islampur in the aforementioned suit.
2. The second appeal was admitted under Order XLI Rule 11 of the Code of Civil Procedure to answer the following two substantial questions of law:-
2) Whether the impugned judgment passed by the lower appellate court is a proper judgment of reversal?
3. The facts relevant to answer the aforesaid substantial questions of law are thus, the plaintiff (since deceased) was the elder brother of the defendant (since deceased). The plaintiff alleged that he, out of his own funds, by a registered deed of conveyance dated March 09, 1960 had purchased a piece of land at Islampur, District-Uttar Dinajpur (hereinafter referred to as the ‘suit land’ in short) and had constructed a two storied pucca building thereon described in the schedule ‘A’ appended to the plaint of the suit. The plaintiff has further alleged that he had allowed his younger brother and his family members to occupy the first floor of the said two storied building described in the schedule ‘B’ appended to the plaint of the suit as licensees under him. The said license though was revoked by a notice dated March 24, 2010, but the licensees refused to quit and vacate the Schedule B property, hence the suit.
4. The defendant contested the said suit with a defence that he is not a licensee under the plaintiff but a co-owner of the suit land and the structure thereon. The suit land though was purchased in the name of the plaintiff but for the benefit of all the family members and the consideration price was paid by Sarat Chandra Chowdhury, the father of the plaintiff and the defendant. The plaintiff is claiming absolute title over the suit land and the schedule A property in exclusion of his other brothers as the deed stands in his name.
5. On the death of the defendant, his widow and two sons were substituted in the suit. The substituted defendants contested the suit with the same defence of their predecessor-in-interest. In support of their said defence, they proved documentary evidences e.g. Exhibit-‘A’(Registered Agreement of family settlement),Exhibit-‘B’(Municipal building plan), Exhibits-‘C’, ‘D’ and ‘E’ (Income Tax returns), Exhibit-‘F’ series (Copy of R.S.R.O.R. of Mouza-Choprajhar) and Exhibit-‘G’ (Electricity Bill).
6. The learned Trial Judge had dismissed the suit holding inter alia that the plaintiff has failed to prove that at the relevant point of time, he had sufficient income to purchase the suit land and to construct Schedule A property thereon. The learned Trial Judge giving much credence to the deed of family settlement(Exhibit ‘A’) held that there was a joint family business which was separated after the death of the father of the parties, therefore whatever the plaintiff had acquired, it will be presumed to have been acquired from the common stock of the family, as such the plaintiff cannot claim exclusive ownership over the schedule A property, besides he is not entitled to the benefit of Section 4(3)(b) of the unamended The Benami Transactions(Prohibition) Act, 1988,(hereinafter referred to as the ‘said Act of 1988’ in short) rather he is a mere truste
BINAPANI PAUL vs. PRATIMA GHOSH AND OTHERS reported in (2007) 6 SCC 100
BHAGWATI PRASAD vs. CHANDRAMAUL reported in AIR 1966 SC 735
CHANDRABHAN (DECEASED) THROUGH LRS AND OTHERS vs. SARASWATI AND OTHERS reported in AIR 2022 SC 4601
D.S. LAKSHMAIAH AND ANOTHER vs. L. BALASUBRAMANYAM AND ANOTHER Reported in (2003) 10 SCC 310
GURUCHARAN SINGH VS. KAMLA SINGH AND OTHERS reported in (1976) 2 SCC 152
KIDAR LALL SEAL AND ANOTHER vs. HARI LAL SEAL reported in AIR 1952 SC 47
K.V. NARAYANASWAMI IYER vs. K.V. RAMKRISHNA IYER AND OTHERS reported in AIR 1965 SC 289
MUDDASANI VENKATA NARSAIAH(DEAD) THROUGH LRS. vs. MUDDASANI SAROJANA reported in AIR 2016 SC 2250
NAGUBAI AMMAL & OTHERS vs. B. SHAMA RAO & OTHERS reported in AIR 1956 SC 593
SHEODHARI RAI AND ORS. vs. SURAJ PRASAD SINGH AND ORS. reported in AIR 1954 SC 758
THAKUR BHIM SINGH (DEAD) BY LRs AND ANOTHER vs. THAKUR KAN SINGH reported in (1980) 3 SCC 72
The burden of proving a benami transaction rests on the party asserting the plea, and the defendants failed to discharge this burden.
The burden of proof in claiming a property as a benami lies on the person alleging it, and presumption favors the name holder unless proven otherwise.
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Benami Transaction – One who alleges that a property is benami and is held, nominally, on behalf of real owner, has to displace initial burden of proving that fact.
Claims of property ownership must be substantiated with credible evidence, as allegations of trust do not override the Benami Transactions Act without proof of fraud.
The burden of proof in a benami transaction lies heavily on the party alleging it, and the intention of the parties involved is crucial. Perversity in the lower court's findings is necessary to inter....
Ownership of property established through financial contribution and valid settlement deeds supersedes claims of joint family ownership without corroborative evidence.
The court held that a claim for property belonging to a joint Hindu family is not barred as benami under the Prohibition of Benami Property Transactions Act when purchased with family funds, requirin....
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