IN THE HIGH COURT OF JUDICATURE AT MADRAS
S. SOUNTHAR, J.
Suresh Kumar - Appellant
Versus
Susmitha Devarajan - Respondent
S.A. No. 224 of 2017 & CMP. No. 5363 of 2017
Decided On : 17-11-2023
Benami Transaction - Property Dispute - Section 3(2) of Benami Transaction Prohibition Act, 1988 - [Section 3(2) of Benami Transaction Prohibition Act, 1988] - The court discussed the presumption under Section 3(2) of the Benami Transaction Prohibition Act, 1988, which states that when a property is purchased in the name of the wife, it is presumed to be purchased for her benefit. The burden of proof lies on the person alleging that the property was not purchased for the benefit of the wife. The court found that even if the appellant proved that he paid the entire sale consideration, the property is deemed to be purchased for the benefit of the wife. The court upheld the lower courts' decisions that the appellant was not entitled to a declaration of absolute title over the suit property.
Fact of the Case:
The appellant, who is the husband, filed a suit for declaration of title and injunction against the respondent, who is his wife. He claimed that the suit property was purchased for his benefit, but the trial court concluded that he failed to prove his case and dismissed the suit. The appellant appealed the decision, arguing that the lower courts erred in not considering material evidence.
Finding of the Court:
The court found that the appellant failed to prove that the suit property was purchased for his benefit, and upheld the lower courts' decisions. However, the court held that the appellant was entitled to ½ share in the suit property based on the evidence presented.
Issues: The main issues were whether the appellant could prove that the suit property was purchased for his benefit and whether he was entitled to any share in the property.
Ratio Decidendi: The court relied on the presumption under Section 3(2) of the Benami Transaction Prohibition Act, 1988, and found that the appellant failed to prove that the property was not purchased for the benefit of the wife. However, based on the evidence, the court concluded that the appellant was entitled to ½ share in the suit property.
Final Decision: The Second Appeal was allowed by modifying the judgment and decree passed by the lower courts. The court declared that the appellant was entitled to ½ share in the suit property and passed a preliminary decree for partition of ½ share in the suit property in favor of the appellant. The judgment and decree passed by the lower courts were confirmed for the other relief prayed in the suit.
JUDGMENT
(Prayer: Second Appeal filed under Section 100 of the Code of Civil Procedure, against the judgment and decree in A.S.No.3 of 2016 (Principal District Court, A.S.No.33/14), on the file of the II Additional District Court, Tindivanam and dated 01.12.2016 in confirming the judgment and decree in OS.No.35 of 2009 on the file of the Principal Subordinate Court, Tindivanam and dated 29.02.2012.)
1. The unsuccessful plaintiff is the appellant. He filed a suit for declaration of title and injunction against the respondent. The suit as well as the first Appeal preferred by him were dismissed. Hence, challenging the concurrent findings of the trial Court, he is before this Court.
2. The appellant and the respondent are husband and wife. According to the appellant/plaintiff, he is employed in United States and the suit property was purchased in the name of the appellant and the respondent by his father-in-law out of the funds sent by him to his father-in-law's account. It was specifically averred by the appellant that though sale deed in respect of the suit property jointly stands in the name of the appellant and the respondent, it was purchased only for the benefit of the appellant. Therefore, the appellant sought for declaration that he was the absolute owner of the suit property and for consequential injunction restraining the respondent from interfering with his alleged peaceful possession and enjoyment of the suit property.
3. The respondent herein filed a written statement and denied the averment of the appellant as if the suit property was purchased out of the funds sent by the appellant from abroad. It was further claimed by the respondent that the suit property was purchased by her father out of his funds for the benefit of the respondent. Therefore, she sought for dismissal of the suit.
4. Before the trial Court, the father of the appellant was examined as PW1, three documents were marked on behalf of the respondent as Ex.A1 to Ex.A3. The respondent's father was examined as DW1 and the vendor of the appellant and respondent was examined as D.W.2. 11 documents were marked on behalf of the respondent as Ex.B1 to Ex.B11.
5. The trial Court on appreciation of oral and documentary evidence available on record came to the conclusion that the appellant failed to prove his case and consequently, dismissed the suit. Aggrieved by the same, the appellant preferred an Appeal in A.S.No.3 of 2016 on the file of the II Additional District Court, Tindivanam. The First Appellate Court also concurred with the findings of the trial Court and dismissed the appeal. Aggrieved by the concurrent findings against him, the appellant has come up with this Second Appeal.
6. At the time of admission, this Court formulated the following substantial questions of law:
“1. Whether the Courts below are right in not drawing adverse inference for non-examination of defendant in the absence of any power document or permission petition?
2. Whether documents produced to show that money was transferred to defendant's father for the sake of purchase of the suit property, are the Courts below right in overlooking the same and that when the amount transferred was admitted by DW1 himself?
3. When there was no specific denial by the defendant as regards the purchase of the suit property in his name only in the capacity as a benami, are the Courts below are right in dismissing the suit?”
7. The learned counsel for the appellant submitted that Ex.A2 & Ex.A3 the bank account and the statement regarding wire transfer service would establish that the appellant transferred a sum of Rs.10,47,500/- to the account of respondent's father and hence, the entire sale consideration for the purchase of the suit property has been provided by the appellant.
8. The learned counsel for the appellant further submitted that the appellant proved that he paid the entire sale consideration for purchase of the suit property, however, the Courts below c
AI
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.
In partition suits concerning benami transactions, the burden of proving such claims lies with the defendants; failure to do so results in equal distribution of shares among legal heirs.
Will - In terms of Section 68 of the Evidence Act read with Section 63(c) of the Indian Succession Act, it is obligatory on the part of the appellant to examine the attestors of this Will.
Jointly held family properties can be classified as ancestral, particularly when the purchase is funded by the joint family's income, despite claims of individual contribution.
The legal principle established is that in cases involving the sale of joint family property, the burden of proving legal necessity lies with the purchaser only if the plaintiffs have properly pleade....
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