NAND KISHORE MEHRA versus SUSHILA MEHRA

Neither the filing of a suit nor taking of a defence in respect of benami transactions involving purchase of property by a person in the name of his wife or unmarried daughter is prohibited under Sections 4(1) and 4(2) of the Benami Transactions (Prohibition) Act, 1988; however, such rights may be enforced only if it is proved that the purchase was not for the benefit of the wife or unmarried daughter, due to the statutory presumption under Section 3(2).

Parties: Appellant Plaintiff: Nand Kishore Mehra; Respondent Defendant: Sushila Mehra
Jurisdiction: India
Judgment Date: 02 July 1995
Procedural Posture: Civil Appeal / Supreme Court Appeal Under Special Leave
Outcome: Appeal allowed
Legal Topics: Benami Transactions, Statutory Interpretation

Property Law Benami Transactions Statutory Interpretation

Case Brief

Summary, issues, holding and outcome

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Parties

Nand Kishore Mehra

Appellant Plaintiff

Sushila Mehra

Respondent Defendant

Procedural Posture

Civil Appeal / Supreme Court Appeal Under Special Leave

Legal Issues

1 Whether the prohibition under Section 4 of the Benami Transactions (Prohibition) Act, 1988 applies to benami transactions involving purchase of property by a person in the name of his wife or unmarried daughter.

Ratio Decidendi

Court Disposition

Appeal allowed

Orders

Order of the Division Bench of the High Court is set aside.
Order of the Single Judge rejecting the defendant-wife's application for rejection of the plaint is upheld.