ORISSA HIGH COURT
B.P. Routray, J.
Jayadev Chandra Biswas and Anr. – Appellants
versus
Chandeswar Prasad Sahu – Respondent
RFA No.130 of 2007
Decided on 10.10.2022
Benami Transactions (Prohibition) Act, 1988 – Section 4 – Civil Procedure Code, 1908 – Order XX Rule 12 – Prohibition of right to recover property held Benami – Burden of proof lies on person who claims property to be Benami – Non-examination of relevant witnesses in trial is more damaging to defendants who claim contrary to explicit recitals of sale document as a benami transaction – When foundation of claim either about partnership business or regarding benami acquisition of property is disproved and evidence adduced from side of plaintiff is satisfying payment of consideration money by him, no further case remains in favour of defendants to maintain their claim over suit schedule land – Plaintiff who has established his right over property being its lawful owner, he is entitled for mesne profit arising out of wrongful use of defendants over the same. (Paras 12, 14 and 17)
Result: Appeal dismissed.
JUDGMENT
B.P. Routray, J.—The Defendants have come up in the present appeal against judgment and decree dated 9th March, 2007 of the learned Additional District Judge (Fast Track), Sambalpur in T.S. NO.157/3 of 2001-05.
2. Suit property consists of four parts, Viz. Schedule ‘A’, ‘B’, ‘C’ and ‘D’. Schedule-A is the land measuring Ac.0.020 decimals out of MS Plot No.1648/2583 of Khata No.190 corresponding to Plot No.1648/5752 in Khata No.733/1762 mutated in the name of Chandeswar Prasad Sahu (Plaintiff).
Schedule ‘B’ property is a pump house situating over the land measuring Ac.0.040 decimals (adjoining to Schedule ‘A’ land) out of plot No.1648/2583 in Khata No.190.
Schedule ‘C’ property is eastern side quarters of the ground floor of the building constructed over Schedule-A land, consisting of one bed room, one drawing room, one kitchen and one toilet with a small covered space in between the toilet and kitchen.
Schedule ‘D’ property is the 1st floor of the same building constructed over Schedule-A land having two quarters each with same description mentioned for the ground floor.
3. Plaintiff - Respondent filed the suit praying for his declaration of right, title, interest over Schedule ‘A’ property, and to declare his right of use of Schedule ‘B’ property, recovery of arrear rent as well as recovery of mesne profit in respect of Schedule ‘C’ & ‘D’ properties from different dates.
4. As per Plaintiff’s case, he and Defendant No.1 were friends initially and they decided to purchase lands. Accordingly, Plaintiff purchased Ac.0.020 dec by registered sale deed No.22 dated 3rd January, 1997 and Defendant No.1 purchased Ac.0.040 dec by registered sale deed No.23 dated 3rd January, 1997 from one Jagannath Panda out of M.S. Plot No.1648/2583 in Khata No.190. Both the lands are adjoining to each other. The land purchased by the Plaintiff is having dimension of 42 feet in north, 46 feet in south, 20 feet in east and west each, i.e. Schedule ‘A’ land. He constructed the building thereon, which was completed in April, 1998. The stair-case of the said building runs jointly over the land of the Plaintiff as well as Defendant No.1. Said stair-case is having 2 feet 6 inch on Plaintiff’s Schedule ‘A’ land and 3 feet 6 inch over adjoining land of Defendant No.1, with the understanding that the same would be used by both of them as a common passage. Further Plaintiff constructed a pump house over the adjoining land of Defendant No.1 affixing the tube well with motor pump. The pump house is of size 10’ x 10’ adjoining towards southern side of the common passage.
The Defendants took rent of Schedule ‘C’ house (ground floor) for Rs.1500/- per month in March, 1998. The Defendants then forcibly occupied Schedule ‘D’ house (1st floor) by breaking open the locks. As the defendants did not pay the rents subsequently and forcibly occupied Schedule ‘D’ house, he reported the matter to police. This did not yield any result. So he sent Lawyer’s notice on 28th August, 2001 to the Defendants terminating the agreement in respect of Schedule ‘C’ house as well as for vacation of possession in respect of Schedule ‘D’ house.
But the Defendants in their reply have claimed their ownership over those properties without any basis and in addition to the same, they further claimed certain amount of money owing from the Plaintiff towards cost of repairing of the bus of the Plaintiff in the guise of false partnership.
5. The Defendant’s case is that, Defendant No.1 purchased entire land measuring Ac.0.060 dec. from Jagannath Panda vide registered sale deed Nos.22 and 23 dated 3rd January, 1997 and constructed the building over Schedule ‘A’ land. Schedule ‘A’ land was purchased in the name of the Plaintiff by him (defendant no.1) and the consideration amount was paid by him (defendant No.1). The purchase of the land in the name of Plaintiff was as per their understanding for obtaining finance where the Plaintiff would stand as a guarantor utilizing the properties over Sche
Burden of proof lies on person who claims property to be Benami.
The central legal point established in the judgment is the burden of proof in benami transactions and the importance of evidence in establishing property ownership and possession.
The burden of proof for a benami transaction lies with the party claiming it, and a new plea of law can be raised based on undisputed and proven facts, provided it does not unfairly prejudice the opp....
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 court affirmed that mere occupation by a licensee does not confer ownership rights and emphasized the necessity for evidence in disputes over property ownership.
The burden of proving a benami transaction rests on the party asserting the plea, and the defendants failed to discharge this burden.
A suit based on a Benami transaction instituted after the commencement of the Benami Transactions (Prohibition) Act, 1988, is barred by law, regardless of when the transaction occurred. Courts must l....
A claimant must provide concrete evidence to establish ownership in cases of alleged benami transactions, failing which the courts will uphold the existing title.
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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