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        Benami Property

        2021 (10) TMI 775 - HC - Benami Property

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        Benami plea rejected for failure of proof; joint family shares were recomputed under amended succession law. Title to property standing in Swarnalakshmi Ammal's name could not be displaced as benami because the defendants failed to prove that Sabapathy Iyer was ...
                        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 rejected for failure of proof; joint family shares were recomputed under amended succession law.

                            Title to property standing in Swarnalakshmi Ammal's name could not be displaced as benami because the defendants failed to prove that Sabapathy Iyer was the real purchaser, and the statutory presumption under the Benami Transactions (Prohibition) Act operated against that plea. The court also treated the property as joint family property, so Sabapathy Iyer had only a notional share. In computing succession, daughters were given equal coparcenary rights under the amended Hindu Succession Act, and the Will in favour of defendants 2 to 4 was accepted as duly proved, allowing only Sabapathy Iyer's share to pass under it. The partition claim succeeded on revised shares.




                            Issues: (i) Whether the suit property was proved to be a benami purchase by Sabapathy Iyer, despite the sale deed standing in the name of Swarnalakshmi Ammal; and (ii) how the shares in the joint family property were to be worked out in view of the statutory amendment to the law of succession.

                            Issue (i): Whether the suit property was proved to be a benami purchase by Sabapathy Iyer, despite the sale deed standing in the name of Swarnalakshmi Ammal.

                            Analysis: The title deed stood in the name of Swarnalakshmi Ammal, and the burden to establish a benami purchase remained throughout on the defendants who asserted it. The Court held that this burden was not discharged. The subsequent dealings with the property, including execution of later documents and the recitals therein, supported the view that the property was treated as joint family property. The statutory presumption under Section 3(2) of the Benami Transactions (Prohibition) Act, 1988 also operated against the plea of benami purchase.

                            Conclusion: The plea that the suit property was benami in the hands of Sabapathy Iyer was not proved.

                            Issue (ii): How the shares in the joint family property were to be worked out in view of the statutory amendment to the law of succession.

                            Analysis: Since the property was treated as joint family property, Sabapathy Iyer had only a notional share. In the light of the amendment to Section 6 of the Hindu Succession Act, 1956, daughters were also entitled to equal coparcenary rights. The Will in favour of defendants 2 to 4 was found to have been duly proved, and Sabapathy Iyer's share alone could devolve under it. On that basis, the respective shares of the parties were recomputed.

                            Conclusion: The plaintiffs were held entitled to a decree for partition on the revised shares worked out by the Court, while defendants 2 to 4 were entitled to Sabapathy Iyer's share under the proved Will.

                            Final Conclusion: The decree of the courts below was interfered with on the question of title, and the partition claim succeeded on a revised computation of shares.

                            Ratio Decidendi: When title stands in the name of one person, the plea of benami must be proved by the person asserting it, and the statutory presumption under the Benami law governs purchases in the name of a wife; once joint family character is found, succession shares must be determined according to the amended Hindu succession law and any duly proved Will.


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