was you minor at that time ? If yes than not benami
Validity of High Court Order
A HUDA allotment letter was issued in 1974 and a conveyance deed for this plot was issued in 1998 (after the father's death). The consideration was paid by the father and allotment was in son's name. Under the Benami Transaction act 1988: 1. Is the allotment letter or conveyance deed used to decide whether the transaction was legal or illegal? 2. The conveyance deed was made 10 years after the Benami Transaction Act 1988. Does this mean this transaction was only legal under Section 4(3) ie because there was HUF or it was held in fiduciary capacity? The section I refer to is: Prohibition of the right to recover property held benami.- (1) No suit, claim or action to enforce any right in respect of any property held benami against the person in whose name the property is held or against any other person shall lie by or on behalf of a person claiming to be the real owner of such property. (2) No defence based on any right in respect of any property held benami, whether against the person in whose name the property is held or against any other person, shall be allowed in any suit, claim or action by or on behalf of a person claiming to be the real owner of such property. (3) Nothing in this section shall apply,– (a) where the person in whose name the property is held is a coparcener in a Hindu undivided family and the property is held for the benefit of the coparceners in the family; or (b) where the person in whose name the property is held is a trustee or other person standing in a fiduciary capacity, and the property is held for the benefit of another person for whom he is a trustee or towards whom he stands in such capacity.
Asked 12 months ago in Civil Law
7 Answers
Transaction is legal and not benami transaction under provisions of section 4(3) of act
If allotment letter was in son name sale deed can be executed on his name
From your contents it can be understood tht the father with an intention of welfare of his son has bought the property on his son's name and accordingly the allotment letter was made on the name of the son and not on the father.
This indicates it is not a benami transaction.
Besides the conveyance deed was made in favor of the son on the basis of the allotment letter, hence the transaction is legally valid.
1. Does this mean that the property is being held either as HUF property or in trustee capacity as per clauses 3(a) and 3(b)? 2. And is the date of the allotment letter or date of conveyance deed relevant when applying this law? The allotment letter was before 1988 and the conveyance deed after 1988
Asked 12 months ago
The transaction is legal if same is done through known source of funds by father for his son
Property was bought in son name for benefit of joint family
son was a trustee and other family members can claim share in said property
Dear client,
Regarding the 1988 Benami Transactions (Prohibition) Act:
- When assessing if a transaction is lawful, the conveyance deed usually has greater significance than the allocation letter. The deed is the last formal transfer of ownership, and the Act may use it as a crucial source when determining whether the property is held benami.
- The Act's Section 4(3) offers exceptions that permit the holding of property in specific roles, such as fiduciary or HUF. The property may be exempt from the Benami Transactions Act if it was held in a fiduciary role or for the benefit of coparceners in a HUF.
- Compared to the allocation letter, the transaction date—that is, the conveyance deed—is probably more important. Transactions made prior to the Act's effective date in 1988 might not be covered by it.
Hope this helps you.
The property was bought in the name of son by father, hence it will not automatically fall under HUF category.
There is no reason to include this property under HUF by anyone.
The law what you refer here is your own imaginary concept.