High Court Of Delhi
NAND KISHORE MEHRA - Appellant
Versus
SUSHILA MEHRA - Respondent
Suit 339 of 1992
Decided On : 05/07/1999
BENAMI TRANSACTION - HUSBAND PURCHASING PROPERTY IN WIFE'S NAME - PRESUMPTION OF BENEFIT TO WIFE - REBUTTAL - EVIDENCE - BENAMI TRANSACTIONS (PROHIBITION) ACT, 1988, SECTION 3(2).
Fact of the Case:
Plaintiff, a married man with four sons, married the defendant in 1954. They lived in a rented house in Delhi. Plaintiff purchased the disputed property in the defendant's name to protect it from his first wife and sons. The defendant worked as a casual typist and had no independent source of income. The plaintiff constructed a house on the property and let it out, receiving part of the rent. The defendant received the remaining rent and used it for household expenses. In 1971, the defendant executed a declaration stating that she held the property in trust for the plaintiff. The plaintiff pledged the title deeds to a bank, which the defendant never objected to. The defendant stopped appearing in court after the Supreme Court ruled against her on the maintainability of the suit.
Finding of the Court:
The court found that the plaintiff had purchased the property with his own funds and that the defendant had no source of income to acquire or construct the property. The court also found that the defendant had always accepted the plaintiff as the owner of the property and had never expressed any interest in it. The court held that the property was the plaintiff's benami property, purchased for his own benefit but in the name of the defendant, and that the plaintiff was entitled to a declaration of ownership.
Issues: Whether the plaintiff had purchased the property with his own funds or with the defendant's funds.
Ratio Decidendi: Under Section 3(2) of the Benami Transactions (Prohibition) Act, 1988, a husband can purchase property in the name of his wife, and it is presumed that the property is for the wife's benefit unless the contrary is proved. In this case, the plaintiff was able to rebut the presumption by showing that he had purchased the property with his own funds, that the defendant had no source of income to acquire or construct the property, and that the defendant had always accepted the plaintiff as the owner of the property.
Final Decision: The court decreed the plaintiff's suit and declared him to be the owner of the property.
( 1 ) THE plaintiff filed a suit for declaration. The plaintiff prayed that he is the true owner of the properties bearing No. B-80, Greater Kailash I, New Delhi and plot No. 9, Anand Industrial Estate, Village Arthala, Distt. Ghaziabad (U. P.) and he be declared as a true owner of these properties. 2. This Court on 28th January, 1992 issued summons and notice to the defendant and also restrained the defendant from selling and parting with possession of the property bearing No. B-80, Greater Kailash I, New Delhi. It may be pertinent to mention that the plainti ff did not press the relief with regard to plot No. 9, Anand Industrial Estate, 672 Village Arthala, Distt. Ghaziabad (U. P.) therefore, this judgment is confined to the property bearing No. B-80, Greater Kailash I, New Delhi. 3. In the plaint it is incorporated that the defendant was married to the plaintiff in the year 1954. It is also disclosed in the plaint that before this marriage the plaintiff was married to one Smt. Bimla (the plaintiff s first wife) and has four sons out of that marriage. Similarly the defendant was also already married. The plamtiff used to stay in Bombay where he had extensive business including manufacturing industrial units. 4. It is also mentioned in the plaint that the defendant had joined the plaintiff s company as a casual typist in the year 1950. The plamtiff and the defendant got attracted to each other and decided to marry, although both the plaintiff and the defendant were already married. 5. Since the marriage had taken place before the Hindu Marriage Act. came into force therefore, there was no impediment so far as the plaintiff was concerned. The defendant had applied for a divorce and got the divorce from her first husband in the year 1953. 6. Since the first wife of the plaintiff and children were living in Bombay and they did not take the marriage of the plaintiff kindly, therefore, the plaintiff decided to take a house on rent at 113, Golf Links, New Delhi in the year 1954 and stayed in the said house in Delhi with the defendant for over 25 years. 7. It is also alleged in the plaint that the plaintiff from his own funds had acquired the property bearing No. B-80, Greater Kailash I, New Delhi for a total consideration of Rs. 50,000. 00. The construction was completed in the year 1969. After the construction, the house was let out and the rent was received in the name of the defendant. The plot was purchased by the plaintiff in the name of his wife. The rent was received partly in the name of the plaintiff and partly in the name of the defendant. 8. It is also disclosed in the plaint that the reason for receiving the rent in the name of the defendant was that the household expenses for the plaintiff s house in Delhi had to be met and the plaintiff had to be mostly away from Delhi in connection with his business. The defendant was thus receiving the major portion of rent simply for meeting the household expenses. The defendant was receiving the rent for and on behalf of the plaintiff and really for his benefit as under law and even otherwise the plaintiff was obliged to maintain the defendant, being his wife. 9. It is mentioned that in the year 1988, the plaintiff was away from India and the defendant in his absence shifted her residence from Delhi to Hyderabad. The reason given by her for shifting to Hyderabad that the plaintiff remained busy in business and she wanted to be near her niece, who had been brought up by the defendant and got married in Hyderabad. It was also mentioned that the real reason of shifting to Hyderabad was perhaps to derive the plaintiff of the properties which were in fact purchased by the plaintiff in her name. 10. It is also incorporated in the plaint that the defendant always treated the plaintiff as the owner of the property until April, 1990 but later on her attitude changed. II. It is reiterated that the plaintiff purchased the plot and had spent amount on construction. The de
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