2025 Supreme(Online)(MAD) 12301
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
K.Murali Shankar, J.
T.Kamatchiammal and ors. – Appellants
Versus
Vijaya and ors. - Respondents
S.A.(MD)No.414 of 2019 and C.M.P.(MD)No.8171 of 2020
Decided On : 07-03-2025
Advocate Appeared :
For the Appellant : Mr.H.Lakshmi Shankar
For the Respondent : Mr.N.Sathish Babu, Mr.C.Jeya Prakash
Advocate Appeared:
For the Appellant : Mr.H.Lakshmi Shankar
For the Respondent: Mr.N.Sathish Babu for R.1 :Mr.C.Jeya Prakash for R.5
The court affirmed that claims of property ownership based on alleged family arrangements were barred under the Benami Transactions Act, as the plaintiffs failed to substantiate their claims.
Headnote:(A) Benami Transactions (Prohibition) Act, 1988 - The Second Appeal challenges the dismissal of the suit for declaration and injunction regarding property ownership. The court found that the properties were held in the names of family members under fraudulent circumstances, rendering the claims under the Act unsustainable. (Paras 22, 24, 30)
(B) Family Arrangement - The court ruled that the family arrangement alleged by the second plaintiff was not proven, and the original deeds executed by family members were valid. (Paras 10, 27)
Facts of the case:
The plaintiffs sought to declare their ownership of properties claimed to be acquired through joint family efforts, alleging fraudulent misrepresentation by a family member after a family arrangement. The defendants contended that the properties were validly transferred to them through settlement deeds.
Findings of Court:
The court affirmed the lower courts' findings that the plaintiffs failed to prove their claims and that the properties were owned by the defendants as per valid documents.
Issues: The main issues included the validity of the family arrangement, the ownership of the properties, and the legal implications of the settlement deeds executed.
Ratio Decidendi: The court held that the family arrangement claimed by the plaintiffs was not substantiated by evidence, and the bar of the Benami Transactions Act applied to the case, disallowing the plaintiffs' claims.
Result: The Second Appeal is dismissed.
JUDGMENT :
K.Murali Shankar, J.
The Second Appeal is directed against the judgment and decree passed in A.S.No.28 of 2017, dated 24.01.2018, on the file of the Additional Subordinate Court, Dindigul confirming the judgment and decree made in O.S.No.28 of 2011, dated 21.02.2017, on the file of the Additional District Munsif Court, Dindigul.
2. The appellants as plaintiffs have filed a suit to declare that “A” and “B” suit schedule properties belonged to the second plaintiff and for permanent injunction restraining the respondents/defendants from interfering with the second plaintiff's possession and enjoyment of the suit properties.
3. For the sake of convenience and brevity, the parties will hereinafter be referred as per their status/ranking in their original suit.
4. It is not in dispute that the first plaintiff is the mother of the second plaintiff, that the first plaintiff and her husband – Thangadurai had five children namely Vijayakandeepan – husband of the first defendant, Dharmaraj - 2nd plaintiff, Dhanabalan, Rajendran and Pushpa Gandhi and that the said Thangadurai had died in the year 1968.
5. The case of the plaintiffs is that the husband of the first plaintiff – Thangadurai started jaggery business and after his demise, his son Vijayakandeepan had continued the said business, that the second plaintiff due to their poverty discontinued his studies and worked in Thirupathy Venkatachalapathy Lorry office, that subsequently the said Vijayakandeepan was declared as insolvent, that the second plaintiff had then started jaggery business in 1972 and in that business, Vijayakandeepan worked as helper, that all the brothers remained as joint family till 2002, that the second plaintiff with his income has purchased “A” schedule properties, vide four sale deeds dated 02.05.1985, 03.09.1985 and 12.04.1991 in the name of his mother – first plaintiff for the benefit of himself and his brother Vijayakandeepan, that subsequently he purchased “B” schedule properties on 10.09.1985 in the name of the first defendant – wife of the said Vijayakandeepan for the benefit of the second plaintiff and the said Vijayakandeepan, that there arose disputes between the second plaintiff and his brother Vijayakandeepan in 2012 and both of them started living separately with their families, that they have entered into a family arrangement wherein the second plaintiff had agreed to pay Rs.25,00,000/- to the said Vijayakandeepan and the second plaintiff had to take both A and B schedule properties and believing the words of his mother – first plaintiff and his brother Vijayakandeepan, he has been doing agricultural operations in the said lands till filing of the suit, that the first plaintiff having affection with Vijayakandeepan, was residing with him and was retaining the original documents with regard to “A” and “B” schedule properties, that the first plaintiff had cataract surgery on 01.02.2006 and at that time, Vijayakandeepan had misrepresented the first plaintiff as if he is purchasing the properties in the name of the first plaintiff, got the signatures in some documents and created the settlement deeds, that the said Vijayakandeepan along with his wife and fifth defendant and by impleading the first plaintiff as one of the plaintiffs, had filed a suit in O.S.No.21 of 2007, on the file of the Additional District Munsif Court, Dindigul against the second plaintiff, that subsequently, the parties have entered into a compromise and on that basis, the said suit was dismissed, that on 20.05.2007, a panchayat was convened before the elders and wherein it was agreed that the suit properties have to be allotted to the second plaintiff, that a sum of Rs.5,00,000/- received from the Electricity Board as compensation has to be allotted to the first plaintiff and that a sum of Rs.25,00,000/- already given was allotted to the share of the said Vijayakandeepan, that the terms arrived at panchayat were reduced in writing on 23.05.2007 through a family arrangement