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        Benami Property

        2013 (11) TMI 1807 - HC - Benami Property

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        Benami plea and territorial jurisdiction failed, so the partition plaint was rejected in full. A benami plea against property standing in the name of a female Hindu must be specifically pleaded by alleging that the purchase was not for her benefit; ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Benami plea and territorial jurisdiction failed, so the partition plaint was rejected in full.

                          A benami plea against property standing in the name of a female Hindu must be specifically pleaded by alleging that the purchase was not for her benefit; absent that essential averment, the partition claim is liable to rejection under Order VII Rule 11(d) CPC. The Gurgaon property could not sustain the suit before that Court once the Delhi property claim failed, because the property lay outside territorial jurisdiction. No partition could also be sought in respect of shares and debentures standing in the mother's name during her lifetime. The plaint was therefore rejected as no relief remained legally maintainable before the Court.




                          Issues: (i) Whether the plaint disclosed a maintainable claim for partition in respect of the Delhi property in view of the plea of benami transaction and the statutory protection available to a female Hindu under the governing law; (ii) Whether the suit could be entertained in respect of the Gurgaon property despite the objection as to territorial jurisdiction; (iii) Whether partition of the shares and debentures could be sought during the lifetime of the co-owner in whose name they stood.

                          Issue (i): Whether the plaint disclosed a maintainable claim for partition in respect of the Delhi property in view of the plea of benami transaction and the statutory protection available to a female Hindu under the governing law.

                          Analysis: The plaint proceeded on the footing that the Delhi property stood in the name of the mother, but was acquired by the father and held in trust for the family. The governing framework recognised that property possessed by a female Hindu is her absolute property, and that a benami plea concerning property purchased in the name of a wife can succeed only if it is pleaded and proved that the purchase was not for her benefit. The plaint did not contain such a specific plea. The Court held that such an essential averment could not be inferred by reading words into the plaint, and the omission could not be cured at a belated stage.

                          Conclusion: The claim to partition the Delhi property was barred and the plaint was liable to rejection to that extent under Order VII Rule 11(d) of the Code of Civil Procedure, 1908.

                          Issue (ii): Whether the suit could be entertained in respect of the Gurgaon property despite the objection as to territorial jurisdiction.

                          Analysis: The Gurgaon property lay outside the territorial jurisdiction of the Court. Once the claim in respect of the Delhi property failed, no part of the suit remained within the Court's jurisdictional competence so as to sustain the proceeding merely on account of the Gurgaon property. The Court observed that appropriate remedies could still be pursued before the proper forum.

                          Conclusion: The suit could not be maintained in respect of the Gurgaon property before that Court.

                          Issue (iii): Whether partition of the shares and debentures could be sought during the lifetime of the co-owner in whose name they stood.

                          Analysis: The shares and debentures were jointly held in the names of the deceased father and the mother, and the Court accepted that they had come to stand entirely in the mother's share. In such circumstances, no claim for partition of those assets could be entertained during her lifetime.

                          Conclusion: No partition relief could be granted in respect of the shares and debentures.

                          Final Conclusion: The combined effect of the findings was that none of the reliefs claimed in the suit was legally maintainable before the Court, and the plaint was rejected.

                          Ratio Decidendi: A benami claim against property standing in the name of a female Hindu is maintainable only if the plaint specifically pleads that the purchase was not for her benefit, and where the plaint omits that essential plea, rejection under Order VII Rule 11(d) is justified when no other relief can sustain the suit before the Court.


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