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1993 Supreme(MP) 722

1994 JLJ 262
Faizan Uddin, Ag. C.J. and R.C. Lahoti, J.
Subhash Chandra Gupta v. Gyanchand and others
First Appeal No. 143 of 1991; Decided on 20.11.1993.

Advocates:
Ravish Agarwal for appellant; J.P. Sanghi for respondents.

Headnote:(1) Benami Transactions (prohibition) Act, 1988 -- S. 2 (a) -- "benami transaction" as defined under -- does not define "property held benami" -- a case of nominal sale where transferor continues to be real owner -- is not covered in the definition. AIR 1980 SC 727 discussed. AIR 1974 SC 171 and Hindu Law by Mulla 1990 Edn, page 589 relied on. [Para 10

       (2) Benami Transactions (prohibition) Act, 1988 -- S. 4 -- Act is not retrospective -- it is declaratory piece of legislation having retroactive operation. AIR 1989 SC 1247 followed. [Para 5

       (3) Benami Transactions (prohibition) Act, 1988 -- S. 4 -- joint Hindu family property -- even if standing in the name of woman member -- cannot be held benami -- prohibition enacted under -- does not apply to such property.

       A property held benami has to be distinguished from a property held by a joint Hindu family as joint Hindu family property though standing in the name of a member of joint Hindu family. A joint Hindu family consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters. Joint family property may be ancestral property or separate property of any coparcener thrown into common hotchpot. Property jointly acquired by the members of a joint family with the aid of ancestral property or with the aid of joint family property, becomes joint family property.

       It will be a misnomer to say that the property standing in the name of a member of the Joint Hindu family alleged to have been acquired by the joint Hindu family with the aid of joint family property or funds amounts to pleading a case of benami. Hindu Law, 1990 Edn. by Mulla relied on. [Para 11

       (4) Civil P.C., 1908 -- O. 7 R. 11 (d) -- rejection of plaint under -- only averments of plaint and documents filed therewith can be looked into -- pleadings in written statement and documents filed by defendant are not relevant. [Para 13

       ¼1½ csukeh laO;ogkj ¼çfr"ks/k½ vf/kfu;e] 1988 & /kkjk 2 ¼d½ & mica/k ds v/khu ;Fkk ifjHkkf"kr ^^csukeh laO;ogkj** & ^^csukeh /kkfjr dh xbZ laifÙk** ifjHkkf"kr ugha gSa & ukeek= dk foØ; ftlesa varjd okLrfod Lokeh cuk jgrk gS & ifjHkk"kk esa lekfo"V ugha gSaA , vkb vkj 1980 ,l lh 727 foosfprA , vkb vkj 1974 ,l lh 171 rFkk eqYyk dk fganw fof/k] 1990 laLdj.k] Ik`"B 589 voyafcrA ¿iSjk 10

       ¼2½ csukeh laO;ogkj ¼çfr"ks/k½ vf/kfu;e] 1988 & /kkjk 4 & vf/kfu;e Hkwry{kh ugha gSa & og iwoZO;kih okys fo/kku dh ?kks"k.kkRed Ñfr gSA , vkb vkj 1989 ,l lh 1247 vuqlfjrA ¿iSjk 5

       ¼3½ csukeh laO;ogkj ¼çfr"ks/k½ vf/kfu;e] 1988 & /kkjk 4 & vfoHkDr fganw dqVqac dh laifÙk && L=h lnL; ds uke ij gksrs gq, Hkh & csukeh vfHkfu/kkZfjr ugha dh tk ldrh & mica/k ds v/khu vf/kfu;fer çfr"ks/k & ,slh laifÙk ij ykxw ugha gksrk gSA

       csukeh /kkfjr dh xbZ laifÙk dks vfoHkDr fganw dqVqac }kjk vfoHkDr fganw dqVqac dh laifÙk ds :Ik esa /kkfjr laifÙk ls çHksfnr djuk gksrk gS pkgs og vfoHkDr fganw dqVqac ds fdlh lnL; ds uke ij gksA vfoHkDr fganw dqVqac ,d gh iwoZt ls ikjaifjdr% votfur lHkh O;fDr;ksa dks feykdj curk gS rFkk mudh ifRu;k¡ rFkk vfookfgr iq=h mlesa lfEefyr gSaA vfoHkDr dqVqac dh laifÙk iSr`d laifÙk gks ldrh gS vFkok lk>s fd vfoHkDr laifÙk esa feykbZ xbZ fdlh lgnkf;d dh Ik`Fkd laifÙk gks ldrh gSA iSr`d laifÙk dh lgk;rk ls vFkok vfoHkDr dqVqach; laifÙk dh lgk;rk ls] vfoHkDr dqVqac ds lnL;ksa }kjk la;qDrr% vftZr laifÙk vfoHkDr dqVqacuh; laifÙk laifÙk gks tkrh gSA

       ;g dguk xyr ukedj.k gksxk fd vfoHkDr fganw dqVqac ds lnL; ds uke ij laifÙk tks vfoHkDr fganw dqVqac }kjk vfoHkDr dqVqach; laifÙk vFkok fuf/k dh lgk;rk ls vftZr dh xbZ gksuk vfHkdfFkr gS csukeh ds ekeys ds vfHkokd~ dh dksfV esa vkrh gSA eqYyk dh fganw fof/k] 1990 laLdj.k voyafcrA ¿iSjk 11

       ¼4½ flfoy çfØ;k lafgrk] 1908 & vk-7 fu-11 ¼?k½ & mica/k ds v/khu okni= dk vxzg.k & ek= okni= ds çdFku rFkk mlds lkFk Qkby fd, x, nLrkost ij gh fopkj fd;k tk ldrk gS & fyf[kr dFku ds vfHkopu rFkk çfroknh }kjk Qkby fd, x, nLrkost lqlaxr ugha gSaA ¿iSjk 13

ORDER

R.C. Lahoti, J.--1. Not a dismissal of the suit at the end of a civil trial but the rejection of plaint at the very threshold of the civil jurisdiction of the trial Court, holding the suit to be barred by law of the land, has left the plaintiff with no other choice but to prefer this First Appeal under section 96 of the Civil Procedure Code. The contesting defendant pleaded the bar enacted by section 4 of the Benami Transactions (Prohibition) Act, 1988 (hereinafter referred to as the 'Benami Act', for short) to the maintainability of the suit and the plea has found favour with the trial Court entailing exclusion of trial of plaintiff's case on merits.

2. The facts in brief and only to the extent necessary for the decision in this appeal may be noticed. The parties, except Balkrishan, the defendant No.6, are members of the same family. The following family tree explains their relationship inter se;

Ramgopal Gupta

Gyanchand-defendant Wife- Bhagirathi-defendant Subhash Chandra

No 1. No 1 -plaintiff.

Wife-Sushila –defendant Santosh Kumar-defendant Wife-Vma-defendant

No.2 No.3 No.5.

Smt. Uma, the defendant No. 5, is the wife of the plaintiff-appellant. Smt. Sushila, the defendant No.2, is the wife of Gyanchand, the defendant No. 1. Smt. Bhagirathi, the defendant No.4, is the wife of Santosh Kumar, the defendant No. 3. Gyanchand and Santosh Kumar, the defendants-respondents Nos. 1 and 3 are the real elder brothers of the plaintiff-appellant. Thus, the plaintiff and the defendants 1 to 5 - the six-are three real brothers and their respective wives. The three brothers are the sons of Late Ramgopal Gupta and Smt. Sarvati Bai, the father and mother, who have expired respectively in the years 1943 and 1965.

3. According to the plaintiff the family of the parties was a Hindu undivided family possessed of substantial property at Bahadurgarh, near Delhi and at Indore. The suit property bearing land survey No. 1321/2 situated at village Khajrana, Tahsil Indore admeasuring O. 26 acres was purchased through a registered deed of sale dated 16.2.1973 for a consideration of Rs. 6,000/- in the name of Smt. Sushila, the defendant No.2, in her capacity as a member of HUF. The price was paid out of joint family funds. The property was invariably treated as HUF property ever since the date of purchase and was enjoyed as such. On 6.10.1982, there was an oral family settlement, reduced into writing at Jabalpur on 11.11.83, under which the suit property came to the share of the plaintiff and he alone became absolute owner thereof. At the instance of the plaintiff, on 14.6.1985, the defendant No. 2 executed a deed of release in favour of defendant No.5, the wife of the plaintiff. Balkrishna, the defendant No.6 has filed civil original suit No. 19-N85 in the Court of IVth Additional District Judge, Indore seeking specific performance of an agreement to sell in respect of the suit property allegedly executed by the defendant No.5 in favour of defendant No. 1. Differences amongst the members of the family and other litigations having been initiated, the plaintiff has been compelled to file the present suit for a declaration that the plaintiff as the Karta of his branch of family was the owner of the suit land bearing survey No. 1321/2 village Khajrana and a consequent injunction restraining alienation.

4. According to the defendant No.6, the plaintiff wants the suit property standing in the name of defendant No.5 to be adjudged Benami, a claim incapable of being canvassed before and adjudicated upon by a civil Court in view of the provisions contained in the Benami Act. On 9.4.1990, the defendant No.6 moved an application under Order 7 Rule 11 CPC seeking rejection of the plaint submitting that the transaction dated 16.2.1973 describing purchase of the suit property in the name of Smt. Sushila the defendant No.2, as a member of HUF amounted to pleading a case of Benami as the plaintiff had intended to suggest that the property though standing

















































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