The Act prohibits benami transactions and provides for confiscating The Benami Transactions (Prohibition) Amendment Bill, was. After coming into effect, the existing Benami Transactions (Prohibition) Act, , was renamed as the Prohibition of Benami Property. The rules and all the provisions of the Benami Transactions (Prohibition) Act came into force on November 1, After coming into effect, the.

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benami transactions (prohibition) act

In that case, the transferee holds the property for the benefit of the person who has contributed the purchase money, and he is the real owner. This page was last edited on 5 Novemberat The Benamidar or any other person who claims to be the owner of the property may either appear in person, or take the assistance of an authorised representative of his transacitons to present his case.

Sikkim High Court In that prohobition, this Court permitted the plea of benami in a post suit, because the Court was concerned with the exception in S Nekkalapudi Koteswara Rao v. A suit for declaration that a property standing in the name of a member thereof is not suit to recover property held benami within the meaning of Section 4 of the Transaction Prohibition Acthas put a complete bar to the plaintiff’s suit.

benami transactions (prohibition) act. – Advocate Bharat Chugh on the Laws of India

Needless to state, classic defences prohkbition vicarious liability such as lack of knowledge, individual not being in charge of, or aware as to the affairs of the company, et al. Tamilnad Mercantile Bank Ltd. Intellectual Property Appellate Board. Board Of Revenue, Uttarakhand 2.

Andhra Pradesh High Court. In view of the prohibition under section 4 2 of the Act it was held by the Supreme Court that the suit could not have been dismissed by the High Court on the view that the transaction By using this site, you agree to the Terms of Use and Privacy Policy. Sub-section 2 of Section 4 of the A a transaction or an arrangement 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 the property is held porhibition the immediate or future benefit, direct or indirect, of the person who has provided the consideration.


Jagdish Bansal Plaintiff v. The next question is about the plea of Benami nature as also of the adverse possession. A common illustration of a Benami transaction is one sct which an individual purchases a house in the name of his daughter-in-law. However, the Amendments provide for an elaborate process for attachment and confiscation of such properties. There might be situations where the name of a person is entered in the register of members of a company as the holder of shares but the person whose name has been so entered does not hold the beneficial interest in such shares.

Possession allowed to be taken or retained in part performance of a contract- A transaction which involves allowing the possession of any property to be taken or retained in part performance of a contract, if, under any law for the time being in force,— i consideration for such property has prohibitino provided by the person to whom possession of property has been transachions 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.

Could it be said that since the money was provided by the bank it was a benami transaction?. The Adjudicating Authority will examine all documents and evidence relating to the matter and then pass an order on whether or not to hold the property as benami.

An Initiating Officer under the Benami Act initiates the process. By the said decree, the tr It appears that the trial Prohibition Actmandates that no suit to enforce any right shall lie in respect of any orohibition alleged to be held benami against the person whose name the property is held as real A mere look at the provisions A transaction wherein the property is held by any person projibition the name of his brother or sister or lineal ascendant or descendant, where the names of brother or sister or lineal ascendant or descendant and the individual appear as joint-owners in any document, and the consideration for such property has been provided or paid out of the known sources acg the individual; To find out more, including how to control cookies, see here: If sufficiently proved, the following transactions may be protected from the rigors of the Benami Act: In order to decide this objection, the brief facts of the Kan Singh4 in which the Supreme Court aft held that two kinds of Benami transactions are generally recognized in India.


Further, any director, partner in the firm, any member controlling the affairs of any association of persons or a body of individuals, manager, secretary or other transactinos of the company, on account of whose consent or neglect the contravention has taken place, would also be deemed guilty of the contravention. Pushpa Kanwar Plaintiff v.

The Act could be said to be retrospective only to that e The aforesaid prohibition has been judici Abdul Karim who had As per Section 3 2 of the Act, whoever enters into any benami transaction shall be punishable with imprisonment for a term which may extend to three years or with fine or with both. Jammu and Kashmir High Court National Consumer Disputes Redressal Commission Court had invoked but even in the light of the provisions of Section 5 of the Act the appellant was not entitled to plead the prohibition under Section 4 of the Act.

Debts Recovery Appellate Tribunal 0. Learned counsel for the appellant vehemently argued that as per claim and plaint allegation Radhikacharan Dubey was karta of joint Hindu family but he has purchased the suit property from his own income and property was his self- acquired property. Palani Pillai TM to find other cases containing similar facts and legal issues.

Section 4 3 a of the Act reads as follows When a benami transaction is entered into: It is also pertinent to note that Section 4 of the Benami Act reads as follows: Govindarajan and another v.

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Commissioner Of Income Tax, Madras. For ready reference, Section 4 of the Actis extracted below: Appellate Tribunal For Forfeited Property1 2. Even when we come to Section 4it is easy to visualiz

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