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Corporate Law

Whether Registration of Lease Hold Property in Family Member Considered as Benami Property

Case Law Details

TaxGuru Citation
2012 taxguru.in 2145
Case Name
Sri Marcel Martins Vs M. Printer & Ors. (Supreme Court of India)
Date of Judgement/Order
Only available for paid members
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Sri Marcel Martins Vs M. Printer & Ors. (Supreme Court of India)

SEVERAL MEMBERS OF FAMILY PROVIDING CONSIDERATION TO CONVERT LEASE PROPERTY INTO FREEOLD BUT REGISTRATION OF PROPERTY HELD ON THE NAME OF ONE PERSON’S NAME-WHETHER CONSIDERED AS BENAMI PROPERTY?

BRIEF FACTS: Ms. SM was a tenant (Lessee) of a residential house owned by Municipal Corporation. in the year 1978 the Corporation decided to sell the said property and similar other properties to those, who are in occupation at the time of decision taken. Before sale could be affected in Ms. SM, she had passed away leaving behind her husband, their daughters (respondents) and the appellant, who happened to be their only son.

Since the Corporation desired that transfer of tenancy rights held by the deceased lady, Ms. SM should be made to only one out of her several legal representatives presumably to avoid procedural complications, the husband of the deceased -tenant and the daughters -respondents herein all consented to transfer of the tenancy rights in favor of the appellant.

The consideration to the Municipal Corporation of Rs. 48000 -odd was paid for purchase of the property by the three daughters -respondents and the son each contributing Rs. 5000/- towards the consideration and balance Rs. 28000 -odd was paid by the husband of the late Ms. SM (tenant).

QUESTION RAISED BEFORE COURTS:

1. Whether the appellant could take the plea of “BENAMI” transaction in any suit?

2. Could the appellant be said to be standing in fiduciary relationship and it could be said that the transaction is outside the scope of the term “BENAMI TRANSACTION”?

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Author Info

FCS Deepak P. Singh
Qualification: CS
Company: SBI GENERAL INSURANCE COMPANY LIMITED
Location: MUMBAI, Maharashtra
Articles Published: 442

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