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2008 (12) TMI 806 - HC - Indian Laws

Issues Involved:
1. Whether the plaintiff is entitled to a perpetual injunction.
2. Whether the suit for injunction simpliciter is maintainable without a relief of declaration.
3. Whether the provisions of the Benami Transactions (Prohibition) Act, 1988 are applicable.

Summary:

Issue 1: Entitlement to Perpetual Injunction
The plaintiff instituted Original Suit No.640 of 2003 for perpetual injunction, claiming to have purchased the suit property in the name of the first defendant (his son) in benami and leased it to the defendants. The trial Court dismissed the suit, finding the plaintiff's contentions unconvincing. The first appellate Court reversed this decision, granting the injunction based on the plaintiff's claim of benami purchase. The High Court, however, noted that the plaintiff failed to establish the alleged landlord-tenant relationship and admitted that the defendants were trespassers, thus invalidating his claim for injunction.

Issue 2: Maintainability of Suit for Injunction Simpliciter
The High Court emphasized that in a suit for injunction simpliciter, title issues can only be incidentally considered if there are necessary pleadings and issues framed regarding title. The trial Court did not frame any issue regarding title, and the first appellate Court erroneously decided on the benami transaction without proper pleadings or issues. The High Court cited the Supreme Court's decision in Anathula Sudhakar, which outlines that a suit for injunction should primarily address possession, and title issues should lead to a comprehensive suit for declaration if they involve complicated questions of fact and law.

Issue 3: Applicability of Benami Transactions (Prohibition) Act, 1988
The plaintiff claimed the suit property was purchased in benami in the name of the first defendant. The High Court found that the plaint did not specifically aver that the plaintiff and first defendant were coparceners or that the property was for the benefit of the coparcenary, which is necessary to invoke Section 4(3)(a) of the Benami Transactions (Prohibition) Act, 1988. The High Court concluded that the plaintiff is barred from raising the plea of benami transaction u/s 4(1) of the Act and failed to prove the benami nature of the transaction.

Conclusion:
The High Court allowed the second appeal, setting aside the first appellate Court's judgment and restoring the trial Court's decision. The plaintiff's suit for perpetual injunction was dismissed, and the provisions of the Benami Transactions (Prohibition) Act, 1988 were deemed inapplicable due to insufficient pleadings and proof.

 

 

 

 

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