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Pre-1988 Benami Purchase Can’t Be Enforced Through Suit Filed After Benami Act: HP HC

Case Law Details

TaxGuru Citation
2026 taxguru.in 8971
Case Name
Braham Dev Sood & Others Vs Janki (Himachal Pradesh High Court)
Date of Judgement/Order
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Braham Dev Sood & Others Vs Janki (Himachal Pradesh High Court)

Material Facts

The plaintiff instituted a suit seeking a permanent prohibitory injunction restraining the defendants from alienating the suit land and interfering with his possession. The plaintiff pleaded that his predecessor-in-interest had purchased the land through registered sale deeds dated 20.10.1948 and 23.11.1949 in the name of Hira Nand as a benami purchaser, since persons who were not residents of Kandaghat could not purchase property there. According to the plaintiff, although the sale deeds stood in Hira Nand’s name, possession remained with the plaintiff’s predecessor, who developed the land and constructed structures thereon. Following settlement proceedings, the defendants were shown as owners in the revenue records while the plaintiff was shown in possession.

The defendants denied the benami claim, disputed the plaintiff’s possession over most of the land, raised objections regarding maintainability, limitation and estoppel, and filed a counterclaim seeking possession of the land after demolition of the structure.

Procedural History

The Trial Court framed issues including the applicability of Section 4(1) of the Benami Transactions (Prohibition) Act, 1988. It held that the plaintiff’s own case admitted a benami transaction and that Section 4(1) barred the claim. The suit was dismissed.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,774

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