Supreme Court Dismisses Appellant in Benami Transaction Suit Barred by Section 66 CPC. Certified Purchaser's Transferee Protected Against Real Owner's Claim; Adverse Possession Plea Not Properly Raised.

In Favour of Accused
  • 8
Judgement Image
Font size:
Print

Case Note & Summary

This was an appeal by special leave against a judgment of the Patna High Court which reversed the concurrent judgments of two courts below and ordered dismissal of the appellant's suit. The appellant, Syed M. Karim, sought a declaration of title and confirmation of possession, or in the alternative delivery of possession, over certain properties. The respondent, Mst. Bibi Sakina, was a transferee of the disputed properties from Hakir Alam, the son-in-law of Syed Aulad Ali, in whose name the properties had originally been purchased at a court sale. The appellant claimed that his father, Syed Aulad Ali, had purchased the suit properties on 28 May 1914 at a court sale, benami in the name of Hakir Alam, because rules of the Darbhanga Raj prohibited employees of certain capacities from purchasing at court sales. On 6 January 1950, Syed Aulad Ali sold the property to the appellant, and Hakir Alam sold the same property to Bibi Sakina, leading to the suit. The trial court and the first appellate court had decreed the suit in favour of the appellant. The Patna High Court, in Appeal from Appellate Decree No. 642 of 1957, reversed these concurrent findings and dismissed the suit. The appellant then obtained special leave and filed Civil Appeal No. 647 of 1962 before the Supreme Court. The core legal issues were whether the suit based on the benami nature of the 1914 purchase was barred by Section 66 of the Code of Civil Procedure, 1908; whether the second sub-section of Section 66 permitted a suit by a transferee from the real owner, as opposed to a creditor; and whether the appellant's alternative claim of title by adverse possession was properly pleaded and proved. The appellant argued that the findings clearly established the benami nature of the transaction, but that he could still sue under the second sub-section of Section 66 because the transfer from Syed Aulad Ali to him made him a third person with a claim against the real owner. He also contended that the title of Hakir Alam had been extinguished by long and uninterrupted adverse possession of Syed Aulad Ali and thereafter the appellant. In support of the adverse possession plea, he relied on Sukan v. Krishnand and Sri Bhagwan Singh v. Ram Basi Kuer. The respondent contended that the suit was barred by Section 66 and that the adverse possession plea had not been raised in the plaint. The Supreme Court held that Section 66 of the Code of Civil Procedure barred the suit. The protection of the section was available not only against the certified purchaser but also against anyone claiming title under a purchase certified by the court. The appellant as plaintiff was directly hit by the section. The court rejected the argument that the second sub-section applied to transferees, stating that the words of the second sub-section referred only to claims of creditors, not transferees. Accepting the appellant's construction would defeat the legislative policy and make the first sub-section a dead letter. On the alternative claim of adverse possession, the court observed that such a claim must be clearly made and proved. Adverse possession must be adequate in continuity, publicity, and extent, and a plea is required to show when possession became adverse. The plaint merely stated that Syed Aulad Ali continued in possession; it did not allege hostile title or any dispute. A prayer clause mentioning uninterrupted possession for several twelve years or absolute title was not a substitute for a proper plea. The cited cases were distinguished, and it was noted that in Bishun Dayal v. Kesho Prasad the Privy Council had not accepted an alternative case based on possession after purchase without a proper plea. Reading the plaint as a whole, the court agreed with the High Court that no case based on adverse possession was stated. Accordingly, the Supreme Court dismissed the appeal with costs, affirming the Patna High Court's judgment and decree.

Headnote

A) Civil Procedure - Benami Transactions - Bar of Suit Against Certified Purchaser and Those Claiming Through Him - Code of Civil Procedure, 1908, Section 66 - The appellant claimed title through a benami court purchase made in the name of his father's son-in-law, but Section 66 provides that no suit shall be maintained against any person claiming title under a purchase certified by the court on ground of benami. The protection is available not only against the certified purchaser but also against anyone claiming through him. The appellant as plaintiff was hit by the section and the defendants were protected by it. Held that the claim based on benami nature was barred (Paras Not mentioned).

B) Civil Procedure - Interpretation of Section 66(2) - Sub-section (2) Applies to Creditors, Not Transferees - Code of Civil Procedure, 1908, Section 66(2) - The appellant contended that the transfer from the real owner to him made him a third person entitled to sue under the second sub-section. The Court held that the words of the second sub-section refer to the claim of creditors and not to the claims of transferees. Accepting the appellant's construction would defeat the entire policy of the law and render the first sub-section almost a dead letter. Held suit barred under Section 66 (Paras Not mentioned).

C) Limitation - Adverse Possession - Requirements of Plea and Proof - Limitation Act - Adverse possession must be adequate in continuity, in publicity and extent, and a plea is required at the least to show when possession becomes adverse so that the starting point of limitation against the party affected can be found. The plaint only stated that the father continued in possession after the benami purchase; there was no suggestion of hostile title or dispute. Long possession is not necessarily adverse possession and the prayer clause is not a substitute for a plea. Referred to Sukan v. Krishnand, Sri Bhagwan Singh v. Ram Basi Kuer, and Bishun Dayal v. Kesho Prasad. Held that the alternative claim based on possession after purchase was not stated in the plaint and could not be accepted (Paras Not mentioned).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the suit based on a benami court purchase was barred by Section 66 of the Code of Civil Procedure, 1908; whether the second sub-section of Section 66 applied to transferees as opposed to creditors; whether the appellant's alternative claim of title by adverse possession was properly pleaded and proved

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The appeal was dismissed with costs. The Supreme Court affirmed the Patna High Court's judgment and decree, which had reversed the concurrent judgments of the two courts below and dismissed the appellant's suit.

Law Points

  • Section 66 CPC bars suits against certified purchaser or anyone claiming through him
  • protection available against real purchaser and those claiming through him
  • sub-section (2) applies only to creditors
  • not transferees
  • adverse possession requires clear plea showing when possession became adverse
  • continuity
  • publicity
  • extent
  • long possession not necessarily adverse possession
  • prayer clause not substitute for plea
  • real owner whose possession ripens into title under Limitation Act can sue if dispossessed without relying on benami
Subscribe to unlock Law Points Subscribe Now

Case Details

1964 LawText (SC) (02) 7

Civil Appeal No. 647 of 1962

1964-02-14

M. Hidayatullah, Raghubar Dayal

1964 AIR 1254, 1964 SCR (6) 780

S. P. Varma (for appellant); S. P. Sinha, Shahzadi Mahiuddin, Shaukat Hussain (for respondent)

S. M. Karim (Syed M. Karim)

Mst. Bibi Sakina

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil suit for declaration of title and confirmation of possession, alternatively delivery of possession, in respect of property purchased at a court sale in a benami transaction.

Remedy Sought

Appellant sought declaration of title and confirmation of possession, or in the alternative delivery of possession, against several defendants including the respondent; on appeal, he sought reversal of the Patna High Court's dismissal of his suit.

Filing Reason

The appellant alleged that his father Syed Aulad Ali purchased the suit properties on 28 May 1914 at a court sale, benami in the name of his son-in-law Hakir Alam, because Darbhanga Raj rules prohibited employees from purchasing at court sales. On 6 January 1950, Syed Aulad Ali sold the property to the appellant, and Hakir Alam sold it to Bibi Sakina, leading to the dispute.

Previous Decisions

The trial court and the first appellate court had concurrently decreed the suit in favour of the appellant; the Patna High Court, in Appeal from Appellate Decree No. 642 of 1957, reversed these concurrent judgments and ordered dismissal of the suit.

Issues

Whether the suit based on a benami court purchase was barred by Section 66 of the Code of Civil Procedure, 1908. Whether the second sub-section of Section 66 applied to transferees as opposed to creditors. Whether the appellant's alternative claim of title by adverse possession was properly pleaded and proved.

Submissions/Arguments

Appellant argued that the findings clearly established the benami nature of the 1914 transaction and that the case fell within the second sub-section of Section 66 because the transfer from Syed Aulad Ali to him was a claim by a transferee against the real owner. Appellant also contended that the title of Hakir Alam was extinguished by long and uninterrupted adverse possession of Syed Aulad Ali and thereafter the appellant, relying on Sukan v. Krishnand and Sri Bhagwan Singh v. Ram Basi Kuer. Respondent contended that the suit was barred by Section 66 of the Code of Civil Procedure and that the adverse possession plea had not been raised in the plaint.

Ratio Decidendi

Section 66 of the Code of Civil Procedure, 1908 bars a suit based on benami purchase against a certified purchaser and any person claiming title through such purchaser; the protection extends to anyone claiming through the certified purchaser. The second sub-section of Section 66 applies only to creditors, not transferees. A claim of adverse possession must be specifically pleaded with facts showing when possession became adverse, its continuity, publicity, and extent; long possession alone is insufficient, and a prayer clause cannot substitute for a plea. If a real owner's possession ripens into title under the Limitation Act and he is dispossessed, he may sue without relying on the benami nature, but only if the alternative claim is clearly made and proved.

Judgment Excerpts

The protection is thus available not only against the real purchaser but also against anyone claiming through him. The words of the second sub-section refer to the claim of creditors and not to the claims of transferees. Adverse possession must be adequate in continuity, in publicity and extent and a plea is required at the least to show when possession becomes adverse so that the starting point of limitation against the party affected can be found. Long possession is not necessarily adverse possession and the prayer clause is not a substitute for a plea.

Procedural History

The appellant filed a suit for declaration of title and confirmation of possession, alternatively delivery of possession. The trial court and the first appellate court decreed the suit concurrently. The respondent appealed to the Patna High Court, which by judgment and decree dated 3 December 1959 in Appeal from Appellate Decree No. 642 of 1957 reversed the concurrent judgments and dismissed the suit. The appellant then obtained special leave and filed Civil Appeal No. 647 of 1962 before the Supreme Court.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 66
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Pension Claim of Daily Wager Converted to Temporary Employee — Half of Pre-Regularization Service Counted as Qualifying Service Under Office Memorandum Dated 1st May, 1987. The court held that the petitioner, who served as ...
Related Judgement
Supreme Court Supreme Court Dismisses Appellant in Benami Transaction Suit Barred by Section 66 CPC. Certified Purchaser's Transferee Protected Against Real Owner's Claim; Adverse Possession Plea Not Properly Raised.