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Sh Amar N Gugnani vs Naresh Kumar Gugnani Through Legal ... on 30 July, 2015

10. Another reason given by the trial court for disbelieving the plea of the appellant no.1/defendant no. 1 was that this plea of appellant no. 1/defendant no. 1 of being owner on account of paying moneys is to be held to be barred by Section 4 of the Benami Transactions (Prohibition) Act, 1988 (hereinafter referred to as 'the RFA No. 957/2017 Page 9 of 16 Benami Act') as the plea of appellant no.1/defendant no. 1 was that he was a joint owner i.e a benamidar of the subject property although the sale deed of the suit property dated 9.8.1965, Ex.PW1/1, was in the sole name of late Sh. Prahlad Singh. Trial court for holding the defence of appellant no.1/defendant no. 1 of being owner allegedly by having paid moneys and thus being barred by the Benami Act has referred to two judgments passed by this Court in the cases of J.M. Kohli Vs. Madan Mohan Sahni and Anr., in RFA No. 207/2012 decided on 7.5.2012 and CS(OS) No. 478/2004 titled as Sh. Amar N. Gugnani Vs. Naresh Kumar Gugnani (through legal heirs) decided on 30.7.2015. These judgments hold that since by passing of the Benami Act the relevant provisions of the Indian Trusts Act calling the benamidar as a trustee have been repealed, hence the relationship of benami transaction though is in the nature of a trust/trustee the same cannot be included in the exception contained in Section 4(3)(b) of the Benami Act because otherwise effectively the repealed provisions of the Indian Trusts Act will again be brought into force. The object of excluding fiduciary relationships from benami transactions is to give exception to a very limited classes of fiduciary relationships provided RFA No. 957/2017 Page 10 of 16 that they are really not in the nature of bemani transactions. The relevant paras of the judgment of the trial court in this regard are paras 28 to 32 and these paras read as under:-
Delhi High Court Cites 19 - Cited by 7 - V J Mehta - Full Document
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