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2021 (11) TMI 520 - HC - Benami PropertyBenami transaction - sufficient cause of action for continuation of the suit at the instance of respondent Nos. 1 & 2. - HELD THAT:- Perusal of clause A(a)(ii)(ibid) clearly reveals that where a property is transferred to or held by a person and the consideration for such property has been provided or paid by another person and it is held by a person standing in a fiduciary capacity for the benefit of another person towards whom he stands in such capacity then it is not covered within the ambit of benami transaction and as such, contention to that effect is liable to be rejected. For declaring the transfer of property as benami transaction, proper procedure has been prescribed under the Benami Act and mere assertion at the instance of petitioner would not abort the claim of respondent Nos. 1 & 2 at the threshold. The plea raised on behalf of the petitioner regarding compulsory registration of property, having value of more than ₹ 100/-, is also not helpful in view of the fact that both the properties were transferred in terms of section 17 of the Registration Act by way of Sale Deeds in name of the petitioner with an oral understanding that same shall be transferred in favor of respondent Nos. 1 & 2 on attaining the age of 20 years. Again, this is the plea of defence and as such, the same cannot be looked into while deciding the application under Order 7, Rule 11 CPC. It is one thing to say that there is no cause of action for the plaintiffs to file the suit and it is another thing to say that plaint does not disclose any cause of action. Plaint discloses sufficient cause of action for continuation of the suit at the instance of respondent Nos. 1 & 2.
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