year 2016. Mr. Seth submitted that by virtue of Section 3 of the
Benami Transactions (Prohibition) Act, 1988 [as it stood prior to its
amendment ... Section 3(2) has been removed. He submitted that, in fact,
the Act itself provides in Section 1(3) that the provisions of Section 3
Section 82 -
Prohibition of Benami Transaction - Prohibition of right to recover
property held by Benami - Whether prohibition under Benami
Transaction Act is prospective or retrospective ... basis of Benami
transaction, if he has not already filed Written Statement claiming title
under Benami transaction before coming into force of Section
Section 2(8) of the Benami Act defines
"benami property" as any property which is the subject matter of a
benami transaction ... proceedings.
59. The Benami Act , as amended in 2016, provides a three-fold bar to
benami transactions.
60. Under Section 3 , if a person enters
undivided family members are the true beneficiaries.
52. Sections 3 and 4 of the Benami Transactions (Prohibition) Act, 1988
have to be read and understood ... benami transactions.
Sections 3 and 4 complement each other to achieve the same object. While
Section 3 prohibits the creation of any "benami transaction
3. Prohibition of benami transactions:
1. No person shall enter into benami transaction.
2. Nothing in sub-section (1), shall apply to the purchase ... Section 3(1) of the Benami Transactions (Prohibition) Act
mandates that no person shall enter into any benami transaction and sub-
section 2 contemplates that
Section 3(2) (sic Section 3 ) of the unamended 1988 Act is declared as unconstitutional for being manifestly arbitrary. Accordingly, Section 3 ... proceedings under Section 24(1) of the Benami Transactions Act.
24. As regards, the order of provisional attachment under Section 24(3) of the Benami
Section 3 of The
Prohibition of Benami Property Transactions Act, 1988
(hereinafter referred to as ' Benami Act ') prohibits the
benami transactions and makes ... hereunder:
"3. Prohibition of benami transactions- (1) No person shall enter
into any benami transaction.
(2) Whoever enters into any benami transaction shall
Whether in the light of omission of sub-section
(2) of Section 3 of the Benami Transactions
(Prohibition) Act, 1988, the suit of the plaintiff ... Section (2) of Section 3 of the Act,
1988 to hold that the said sub section (2) is an exception to
Section 3
constitutional validity of
1
(2023) 3 SCC 315
-12-
Section 3 of the Prohibition of the Benami Transactions
Act, 1988 (Amendment) Act, 2016 , the Apex ... prohibition of benami transactions. It reads as
under:-
"3. Prohibition of benami transactions.-
(1) No person shall enter into any benami
transaction.
(2) Nothing
Undivided family members are the true
beneficiaries.
39. Sections 3 and 4 of the Benami Transactions (Prohibition) Act, 1988
have to be read and understood ... benami transactions.
Sections 3 and 4 complement each other to achieve the same object. While
Section 3 prohibits the creation of any "benami transaction
