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2004 (9) TMI 383 - SUPREME COURT
Appointment and functions of custodian - Transfers - Held that:- Appeal allowed. We are concerned with a right of a party to possess the property over which it has a lawful title. In such a situation, Benami Transactions Act will have no application in allocation of shares as the same would not come within the purview of transaction relating to a transfer of property. Transfer of CANCIGO in favour of the Appellant was, thus, valid and legal as by reason of the transfer of possession of the CANCIGOs by respondent No. 2 in favour of the Appellant, a valid right has been created therein, the same could not have been attached in terms of section 3(3) of the said Act.
The Custodian thought it expedient not to invoke the provisions of sub-section (2) of section 4 of the said Act. He was at liberty to do so. Even now he is free to do so, if so advised.