Mandatory certificate for benami real ownership suits can be cured by later compliance and merits review follows

A suit based on a plea of real ownership over benami ownership required prior production of the certificate contemplated by section 281A(1)(c) of the Income-tax Act, as the requirement was treated as a mandatory precondition. The suit had been dismissed at the preliminary stage for non-production, but the certificate was later obtained and the provision, as then applicable, did not fix a limitation for making the application. That subsequent compliance removed the defect, so the preliminary dismissal was set aside and the matter was remanded for adjudication on merits after compliance with section 281A(1)(c).

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Issues: Whether the suit based on a plea of real ownership over benami ownership was maintainable without prior production of the certificate contemplated by section 281A(1)(c) of the Income-tax Act, and whether, on subsequent compliance, the matter should be decided on merits.

Analysis: The requirement of producing the certificate was treated as mandatory for a person asserting real ownership in a benami transaction. Although the suit had been dismissed at the preliminary stage for non-production of the certificate, the certificate had since been obtained. The provision, as applicable, did not prescribe a limitation for making the application at the relevant time, and the later compliance removed the defect that had prompted dismissal.

Conclusion: The civil revision was allowed and the suit was remanded to the Subjudge for adjudication on merits after compliance with section 281A(1)(c).

Final Conclusion: The preliminary dismissal was set aside and the suit was restored for a merits determination.

Ratio Decidendi: Where a statutory certificate is a mandatory precondition for maintaining a suit, subsequent compliance with that requirement can justify setting aside a preliminary dismissal and remitting the matter for decision on merits.

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