Ekant Baruta v. Rakesh Baruta (2019) 261 Taxman 565 (Delhi)(HC)

S. 2(9) : Benami transaction–Person making contribution for purchase of property are not owners of property but property in law is of persons in whose name title with respect thereto has been recorded. [S. 4]

Plaintiff instituted suit for partition of a property claiming that plaintiff and four defendants were having 1/5th undivided share therein under deed of purchase of subject property in favour of plaintiff and four defendants . Defendant No. 1, in opposition to application under Order XII rule 6 of CPC stated that though sale deed by which property was purchased was in joint names of plaintiff and four defendants but entire sale consideration for purchase of property was equally paid by defendant No. 1 and by his brother ‘A’. Plea of sale consideration having been contributed by defendant No. 1 and ‘A’, did not in law constitute defendant No. 1 and ‘A’ as owners of property and property in law is of persons in whose name title with respect thereto has been recorded i.e., plaintiff and four defendants. Accordingly  defence of defendant No. 1 was not allowed under section 4 and, thus, final decree for partition of property was passed.