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2018 (11) TMI 365 - HC - Benami PropertyTrustee - Transfer of property - trustee or a person standing in a fiduciary capacity - daughter in law holding property for the benefit of her mother-in-law as per Section 4(3)(b) of the Prohibition of Benami Transactions (Prohibition) Act, 1988 - whether the relationship between mother-in-law and daughter-in-law can be held to be fiduciary in nature, and whether the daughter-in-law can be held to be a trustee of the mother-in-law? Held that:- In Indian society, it is not unusual for a daughter-in-law being treated as a trustee of mother-in-law. In fact, in most large families the daughter-in-law plays an extremely important role in nurturing and bringing up the family. Enormous amount of faith and trust is reposed in the daughter-in-law. In fact, the relationship between the two is one of confidence, trust and belief and not unusual to see in society. A mother-in-law confiding in daughter-in-law and vice-versa to the exclusion of the other family members and enjoying strong bonding is a part of our ethos and culture - Admittedly, Smt. Shakuntala Devi belonged to a wealthy family. In her cross-examination, she states that her father used to deal in shares, had rental income and was a very wealthy man. She had five brothers, who looked after her even after the demise of her father. She was married to Mr. Maheshwar Dayal in 1939, and they were living together in 1876, Haveli Jugal Kishore, Chandni Chowk, Delhi. The transfer letter written by Shri Balbir Singh Goel to the DDA in the name of Smt. Sudha Dayal gives her address as the address of the mother-in-law. The said letter, in original, which bears the extract mentioned above, as receipt of part sale consideration, is clear evidence of the fact that Smt. Shakuntala Devi had paid money to purchase the plot. Smt. Sudha Dayal had authorised her father-in-law Mr. Maheshwar Dayal to deal with the municipal authorities. The evidence is overwhelming and pointing to the fact that Smt. Sudha Dayal always had trust in her mother in law. Thus, Smt. Shakuntala Devi is entitled to seek a declaration that the property actually belongs to her. Going by the letters written by Smt. Sudha Dayal, which are on record, it cannot be held that she did not trust her mother-in-law or that she could not have been in a fiduciary relationship. Since it is stated that there was a legal impediment in the transfer of her brother’s property, in the name of anyone except the blood relations, it is not unimaginable for an understanding to be arrived at that though the money is being paid by the mother-in-law, the property would remain in the daughter-in-law’s name. The bar under Section 4(1) of the Benami Transaction Act, which is the basis of the application under Order VII Rule 11 CPC would, therefore, not apply in the present case, as it is protected by Section 4 (3)(b) of the Benami Transaction Act. Whether the suit is barred by time limitation? - Held that:- All along when Smt. Sudha Dayal was alive, no dispute had arisen between the parties. She passed away in 1987 but the property had continued to remain in her name. No occasion had arisen for Smt. Shakuntala Devi to seek cancellation of the mutation in the name of Smt. Sudha Dayal as she had passed away and Smt. Shakuntala Devi remained all along under the presumption that the property is for the benefit of the whole family. It was only when the family of Smt. Sudha Dayal, after her demise, challenged this position in 2014, that the cause of action arose for her to assert her rights. Thus, the suit is not barred by limitation - The second suit by Smt. Shakuntala Devi seeks cancellation of the conveyance deed in favour of Mr. Mayank Dayal, which was executed in 2014 itself. This suit is also not barred by limitation. Petitions disposed off.
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