Intention Of Parties A Key Factor To Ascertain Benami Transactions
Case: C.C Joy v. C.D Mini & Anr.
Coram: Justice A. Muhamed Mustaque and Justice Sophy Thomas
Case No.: MAT.APPEAL NO.242 OF 2012
Court Observation: “When husband purchases property as part of his real estate business joining his wife as a name lender in the title document, even availing bank loans in her name to pay the consideration, it cannot be said that the purchase was for the benefit of the wife, when there is clear evidence to prove the benami nature of the transaction. But when there is evidence to show that the husband purchased the property or executed document in favour of his wife, unless the contrary is proved, it will be treated as the property of the wife purchased for her benefit.”
“The intention of the parties is a key factor in determining the nature of the transaction, which could be gathered from the relationship between parties, their conduct previous and subsequent to the transaction, source of money for purchase, possession of the property, possession of the title documents, repayment of loan, etc. etc.”
“If it is found that the person in whose name the property stands was only a name lender, and the property was actually purchased for the benefit of the beneficial owner, expending his own money, then of course, the benamidar may not get any right, title or interest over the properties held in his/her name.”
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