TaxTMI 
TaxTMI 
2026 (8) TMI 256
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....ion of the respondent/ defendant no. 2 under Order 7 Rule 11 CPC has been allowed and the suit has been rejected as being barred by law in view of Section 4 of the Prohibition of Benami Property Transactions Act 1988, (for short "Act of 1988"). 2. Learned counsel for the appellant has vehemently argued that the suit was filed by the father of defendant no. 1, against the defendant no. 1 and the purchaser from defendant no. 1, on the assertion that the property was purchased in the name of defendant no. 1 by the nucleus of joint family income. Therefore the actual title in the property lay with the joint family of the plaintiff and all his sons, and not with the defendant no. 1 alone who was only one of the sons of the plaintiff. It is ar....
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....the respondent no.2/defendant no. 2 has vehemently argued that the suit in question is a collusive suit in as much as the property was purchased by defendant no. 1 and he sold the property to the defendant no. 2 in the year 2009 and immediately after selling the property to defendant no. 2, a collusive suit was filed by the father of defendant no. 1 seeking declaration on the said property to be joint family property which is only a malicious piece of litigation instituted by the plaintiff to harass and blackmail the defendant no. 2. It is further argued that looking to the plaint assertions, the transaction in question duly falls within the prohibited transactions in terms of Section 4 of Act of 1988. 5. This court has heard learned cou....
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.... Definitions. In this Act, unless the context otherwise requires,- xx xx xx (9) "benami transaction" means,- (A) a transaction or an arrangement- (a) where a property is transferred to, or is held by, a person, and the consideration for such property has been provided, or paid by, another person; and (b) the property is held for the immediate or future benefit, direct or indirect, of the person who has provided the consideration, except when the property is held by- (i) a Karta, or a member of a Hindu undivided family, as the case may be, and the property is held for his benefit or benefit of other members in the family and the consideration for such property has been provided or paid ou....
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....ed that benami transaction shall not include any transaction involving the allowing of possession of any property to be taken or retained in part performance of a contract referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882), if, under any law for the time being in force, - (i) consideration for such property has been provided by the person to whom possession of property has been allowed but the person who has granted possession thereof continues to hold ownership of such property; (ii) stamp duty on such transaction or arrangement has been paid; and (iii) the contract has been registered." 9. As per Section 2(9)(i), the joint family properties are excluded from the definition of Benami ....