Vinay Khanna v. Krishna Kumari Khanna (2020) 270 Taxman 34 (Delhi)(HC)

Prohibition of Benami Property Transactions Act, 1988 –

S. 2(9): Benami transactions – Where son sought to obtain a declaration of being real and/or benami owner of property on ground that he had given money to his father and mother to purchase property which they got registered in their name but actually property belonged to him, however, no particulars of father and mother standing in any fiduciary capacity to son were disclosed, son would not be entitled to obtain a declaration of being real and/or benami owner of property

Benami transaction means a transaction or an arrangement where a property is transferred to, or is held by, a person, and consideration for such property has been provided, or paid by, another person; and property is held for immediate or future benefit, direct or indirect, of person who has provided consideration .  Prohibition of Benami Property Transactions Act, 1988, prior to its amendment and now, bars a suit, claim or action, to enforce any right in respect of any property held benami against person in whose name property is held or any other person, by or on behalf of a person claiming to be real owner of such property .  Son sought to obtain a declaration of being real and/or benami owner of property for partition of which suit was filed on ground that he had given money to his father and mother to purchase property which they got registered in their name but actually property belonged to him .  However, though parent may be a trustee of a minor son but not of a major son and thus question of transaction being within exception to benami did not arise and thus son could not have taken plea that his father and mother were holding property in trust or for its benefit .  Further, no particulars of father and mother standing in any fiduciary capacity to son were disclosed . Therefore, there was no cause of action or entitlement of son to obtain a declaration of being real and/or benami owner of property .