Guruswami Ganga Naikar v. Vaishali Mohan Kshirsagar (2019) 261 Taxman 504 (Bom.)(HC)

S. 4 : Prohibition of the right to recover property held benami-Fiduciary capacity – Purchase of property in the name of trustworthy employee–Trail Court rejected the suit to recover the property on the ground that suit was barred–Matter restored back to Trial Court decide on merits. [Civil Procedure Code, 1908, Order VII Rule 11(d)]

The appellant purchased the property in the name of employee who was a trustworthy employee for benefit of himself and his employees. The employee has left the job and refused to transfer back in the name of the appellant. The appellant filed the suit for seeking direction to respondent to hand over possession of suit flat to appellant. Trial court rejected the petition on the ground that suit was barred by virtue of provisions of  section 4 of the Prohibition of Benami  Property Transactions Act, 1988  red with Order VII Rule 11(d) of the Civil Procedure Code, 1908. On appeal allowing the appeal the Court held that there was a fiduciary relationship between appellant and  ex employee, accordingly the matter was restored back to Trial Court to decide matter on merit.