Bombay High Court Hears Second Appeal and Cross Objection in Partition Suit Concerning Joint Ownership, Benami Transaction, and Bona Fide Purchase. Substantial Questions of Law Framed on Benami Transaction, Wife's Half Share Entitlement, Self-Acquired Property Finding, and Mesne Profits Without Prayer Under Benami Transactions (Prohibition) Act, 1988.

High Court: Bombay High Court Bench: NAGPUR
  • 3
Judgement Image
Font size:
Print

Case Note & Summary

The matter pertained to a second appeal and cross objection arising from a suit for partition and separate possession. The appellant, original defendant No.5, challenged the judgment and decree dated 29.03.2016 passed by the Principal District Judge, Wardha, which had partly decreed the suit in favour of the original plaintiffs. The cross objection was filed by original plaintiffs challenging the dismissal of their claim for 1/3rd share in the suit property. The suit property comprised plot Nos. 26 and 27 with a double story house. The original plaintiffs were respondent Nos.1 and 2; respondent No.2 was the wife of deceased Beniprasad, who had been adopted by Amolakchand on 21.12.1967. Respondent No.1 was their son. The plaintiffs alleged that Beniprasad had bad habits and sold properties; the suit property was purchased on 28.05.1999 in the joint names of respondent No.2 and Beniprasad from Smt. Vijaya Rajan Vyawhare. They claimed it was joint property. The suit for partition was filed on 04.05.2002. During pendency, Beniprasad sold the suit property to the appellant on 21.01.2004. The plaintiffs amended the plaint to challenge the sale as hit by lis pendens. The appellant claimed to be a bona fide purchaser, had published notice and inquired, contended Beniprasad was absolute owner, respondent No.2 was benami, and relied on relinquishment deed dated 25.01.2001. The trial court by judgment dated 30.09.2009 held Beniprasad absolute owner, respondent No.2 benami, appellant bona fide purchaser and dismissed suit as to suit property. On appeal, the first appellate court reversed partly, held respondent No.2 joint owner entitled to half share, granted partition and separate possession of half share with consequential possession. Hence the second appeal and cross objection. Legal issues framed included: whether first appellate court's reversal of benami finding was valid under Benami Transactions (Prohibition) Act, 1988; whether respondent No.2 entitled to half share; whether lower courts' finding that suit property self-acquired was perverse; and whether mesne profits could be granted without prayer. Appellant argued first appellate court erred as evidence showed entire consideration paid by Beniprasad, respondent No.2 was benami, relinquishment established, appellant bona fide purchaser, findings perverse. Respondents argued appellant by relying on relinquishment admitted respondent No.2's half share; property stood joint in municipal records; appellant not bona fide; Beniprasad never objected to joint sale deed; stranger cannot challenge benami; first appellate court rightly decreed half share. The court perused record and noted undisputed facts: Beniprasad alive when suit filed, sale during pendency, relinquishment deed dated 25.01.2001. Court observed appellant raised three contentions: benami, relinquishment, bona fide purchase. Court noted lower courts rejected ancestral property claim and that appellant was not party to sale deed. The provided text ends while court was analyzing the first contention; final analysis, findings, and operative order are not included.

Headnote

A) Benami Transactions - Benami Ownership in Joint Purchase - Whether wife shown as joint purchaser was benami owner, real owner being husband - Benami Transactions (Prohibition) Act, 1988 (specific sections not mentioned) - Substantial question framed whether first appellate court's reversal of trial court's benami finding was just and valid under the Act; appellant contended entire consideration paid by deceased husband and wife was benami, while respondents relied on joint sale deed and municipal records; court examined arguments and perused evidence but final holding not included in provided excerpt (Paras 8-12).

B) Property Law - Joint Ownership and Bona Fide Purchase - Whether appellant purchaser was bona fide despite joint record - Not mentioned - Substantial question whether first appellate court correctly held respondent No.2 entitled to half share in suit property purchased by appellant; appellant claimed inquiry and public notice, respondents pointed to joint municipal record and lack of objection by husband; court considered contentions but final decision not in provided text (Paras 8-10, 12).

C) Civil Procedure - Mesne Profits - Entitlement to mesne profits without prayer - Not mentioned - Additional substantial question whether respondent Nos.1 and 2 entitled to mesne profit absent any prayer before trial court; no further discussion in provided excerpt (Para 8).

D) Civil Procedure - Cross Objection - Self-Acquired Property Finding - Not mentioned - Cross objection substantial question whether finding of lower courts that suit property was self-acquired property of late Beniprasad was perverse; this issue concerned nature of property and shares; not resolved in provided excerpt (Para 8).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the first appellate court's reversal of the trial court's benami finding was valid under the Benami Transactions (Prohibition) Act, 1988; whether respondent No.2 was entitled to half share in the suit property; whether the lower courts' finding that the suit property was self-acquired was perverse; and whether mesne profits could be granted in absence of a specific prayer.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

Not mentioned in provided excerpt; final order and findings on substantial questions of law are not included.

Law Points

  • Benami transaction prohibition under Benami Transactions (Prohibition) Act
  • 1988
  • joint ownership arising from joint sale deed and municipal records
  • bona fide purchaser's duty to inquire
  • relinquishment of share by co-owner
  • mesne profits cannot be granted without prayer
  • substantial question of law in second appeal
Subscribe to unlock Law Points Subscribe Now

Case Details

2024 LawText (BOM) (03) 154

Second Appeal No. 295 of 2018 with Cross Objection No. 85 of 2019

2024-03-07

G. A. Sanap

2024:BHC-NAG:3321

S. D. Deoras, R. I. Agrawal, Sunil S. Chauhan

Shri. Gangadhar S/o Wamanrao Patil

1. Shri Ravishankar S/o Beniprasad Dhelia; 2. Smt. Rukhaminidevi W/o Beniprasad Dhelia; 3. Arti W/o Manishkumar Goyal; 4. Bharti D/o Beniprasad Dhelia; 5. Mahavir S/o Beniprasad Dhelia; 6. Beniprasad S/o Amolakchand Dhelia (Dead, LRs already on record)

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

Nature of Litigation

Second appeal and cross objection arising from a suit for partition and separate possession of suit properties, involving issues of benami transaction, joint ownership, and bona fide purchase.

Remedy Sought

Appellant sought restoration of trial court decree dismissing suit as to suit property; cross objectors sought partition and separate possession of their 1/3rd share in the suit property.

Filing Reason

Plaintiffs filed suit for partition and separate possession of joint family properties; during pendency, defendant Beniprasad sold suit property to appellant; plaintiffs amended to challenge sale under lis pendens.

Previous Decisions

Trial court (Civil Judge Senior Division, Wardha) by judgment dated 30.09.2009 held Beniprasad absolute owner, respondent No.2 benami, appellant bona fide purchaser, dismissed suit as to suit property. First appellate court (Principal District Judge, Wardha) by judgment dated 29.03.2016 reversed partly, held respondent No.2 joint owner entitled half share, granted decree for partition and separate possession of half share with consequential possession.

Issues

Whether the act of the First Appellate Court in setting aside the findings of Trial Court regarding Benami transaction in name of Respondent No. 2 and further holding Respondent No. 2 as beneficiary was just and valid in view of the provisions of the Benami Transactions (Prohibition) Act, 1988? Whether the First Appellate Court was correct in holding that the Respondent No. 2 is entitled to 1/2 share in the Suit Property which is purchased by the Appellant vide Registered Sale-Deed? Whether the finding recorded by both the learned Lower Courts that the Suit Property is the self acquired property of late Shri Beniprasad Dhelia, is perverse? Whether respondent Nos. 1 and 2 are entitled for mesne profit in absence of any prayer to that effect before the Trial Court?

Submissions/Arguments

Appellant argued that first appellate court erred in reversing well-reasoned trial judgment; evidence showed entire consideration paid by Beniprasad, respondent No.2 was benami, relinquishment deed established absolute ownership of Beniprasad, appellant made inquiry and published notice, was bona fide purchaser, findings were perverse. Respondents argued that appellant by relying on relinquishment deed admitted respondent No.2's half share; property stood joint in municipal records and tax receipts; appellant not bona fide purchaser as no proper inquiry; Beniprasad never objected to joint sale deed; appellant as stranger had no right to challenge benami; first appellate court rightly decreed half share.

Ratio Decidendi

Not determinable from provided excerpt; the court had not concluded its analysis of the substantial questions of law.

Judgment Excerpts

The suit property was the joint property of respondent No.2 and the deceased Beniprasad. The appellant contended that he was a bona fide purchaser for consideration. Learned Principal District Judge, Wardha reversed the judgment and decree passed by the trial Court to the extent of half share of respondent No.2 in the suit property and granted a decree for partition and separate possession of half share to respondent No.2 in the suit property as well as the consequential decree for possession. Whether respondent Nos. 1 and 2 are entitled for mesne profit in absence of any prayer to that effect before the Trial Court ?

Procedural History

Suit for partition and separate possession filed on 04.05.2002 by plaintiffs (respondent Nos.1 and 2) before Civil Judge Senior Division, Wardha as Special Civil Suit No. 39 of 2002. During pendency, defendant Beniprasad sold suit property to appellant on 21.01.2004. Plaint amended to challenge sale under lis pendens. Trial court by judgment and decree dated 30.09.2009 held Beniprasad absolute owner, respondent No.2 benami owner, appellant bona fide purchaser, dismissed suit as to suit property. Plaintiffs appealed to Principal District Judge, Wardha. First appellate court by judgment and decree dated 29.03.2016 reversed trial court partly, granted half share to respondent No.2 in suit property with consequential possession. Appellant (defendant No.5) filed Second Appeal No. 295 of 2018; plaintiffs filed Cross Objection No. 85 of 2019 challenging dismissal of 1/3rd share claim. High Court framed substantial questions of law on 08.02.2023 and additional on 06.12.2023.

Acts & Sections

  • Benami Transactions (Prohibition) Act, 1988:
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Hears Second Appeal and Cross Objection in Partition Suit Concerning Joint Ownership, Benami Transaction, and Bona Fide Purchase. Substantial Questions of Law Framed on Benami Transaction, Wife's Half Share Entitlement, Self-Acquire...
Related Judgement
Supreme Court Supreme Court Allows Defendant's Appeal and Dismisses Money Recovery Suit Barred by Limitation Despite Valid Partnership Registration. A suit for recovery based on invoices failed as no acknowledgment or part payment extended limitation, and time spe...