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Issues: (i) Whether a benamidar can maintain a suit in his own name without the beneficial owner being joined as a party. (ii) Whether a person in possession, who is not a transferee believing in good faith that he is absolutely entitled to the property, can claim compensation for improvements under the Transfer of Property Act, 1882.
Issue (i): Whether a benamidar can maintain a suit in his own name without the beneficial owner being joined as a party.
Analysis: Section 82 of the Indian Trusts Act, 1882 was treated as inconsistent with any objection to a suit by a benamidar. The question was considered settled by authority recognizing that property held benami does not prevent the benamidar from suing in his own name, and that the beneficial owner is bound by proceedings taken by or against the benamidar. The rule was supported by the accepted view of res judicata in benami dealings.
Conclusion: The suit by the benamidar was maintainable, and the objection failed.
Issue (ii): Whether a person in possession, who is not a transferee believing in good faith that he is absolutely entitled to the property, can claim compensation for improvements under the Transfer of Property Act, 1882.
Analysis: Section 51 of the Transfer of Property Act, 1882 permits compensation for improvements only to a transferee who makes them in good faith under the belief of absolute title. Section 5 of the Transfer of Property Act, 1882 was relevant to the meaning of transferee. A mere possessor who was not a transferee within that meaning could not invoke Section 51. The claim for improvements therefore could not succeed on the facts found.
Conclusion: The claim for compensation for improvements was rejected.
Final Conclusion: The appeal was dismissed and the decree of the lower appellate Court was confirmed, with costs left to be borne by each party in this second appeal.
Ratio Decidendi: A benamidar may sue in his own name, and compensation for improvements under Section 51 of the Transfer of Property Act, 1882 is available only to a transferee who in good faith believes himself to be absolutely entitled to the property.
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