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1968 (11) TMI 106

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..... members of a Joint Hindu family. On June 29, 1953, the six brothers who constituted the Joint Hindu Family entered into a partition of the properties belonging to the Joint Family, evidenced by a registered document Ex. A-35. A motor bus No. MDH 662 fell to the share of the plaintiff. At the time of partition the permit was not in the name of the defendant and some proceedings for the transfer of the permit to his name were pending. Accordingly, it was provided in the partition deed as follows : as soon as its route permit and registration, etc., are transferred in the name of Shanmugham Pillai, he shall have the same transferred in the name of the 4th individual of us, Vishwanatha Pillai. 3. In September, 1953, the permit was t .....

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..... 069 the decree was set aside. 6. The High Court held that the plaintiff and the defendant practised a fraud upon the authorities, conjointly, in contravention of the express provision of the Motor Vehicles Act. The Benamidar of the vehicles representing himself to be the owner, falsely obtained the permits in his name and allowed the true owner, who had no permit, to conduct the actual business; there cannot be a more flagrant violation of the basic requirements of the Act, or of its scheme. The High Court, accordingly, felt that they could not possibly grant mandatory injunction compelling the defendant to co-operate in any further application for transfer, since that would, in effect, give recognition to the fraudulent contrivance an .....

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..... e of a transport vehicle as a contract carriage, or state carriage, or authorising the owner as a private carrier or public carrier to use such vehicle. (22) 'private carrier' means an owner of a transport vehicle other than a public carrier who uses that vehicle solely for the carriage of goods which are his property or the carriage of which is necessary for the purposes of his business not being a business of providing transport or who uses the vehicle for any of the purposes specified in sub-section (2) of Section 42. (23) 'public carrier' means an owner of a transport vehicle who transports or undertakes to transport goods, or any class of goods, for another person at any time and in any public place for hire .....

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..... to the same conclusion in Veerappa Pillai v. Raman Raman. (1952) SCR 583 9. Some reliance was placed on the amendments made in Section 60(1)(c). The section as amended reads : 60(1). The Transport Authority which granted a permit may cancel the permit or may suspend it for such period as it thinks fit - x x x (c) if the holder of the permit ceases to (own) (Substituted by Section 54 of the Motor Vehicles (Amendment) Act, 1956 (100 of 1956), for possess (w.e.f. 16-2-1957)) the vehicle or vehicles covered by the permit, ..... There has been a conflict of opinion between the different High Courts as to the inference following that amendment. It seems to us that the High Court of Allahabad in Khalil-ul-Rahman Khan .....

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..... ave a permit is erroneous. 10. The decision of the Andhra High Court in Chavali Venkataswami v. Chavali Kotavya (1959) 2 AWR 407 that Section 60(1)(c) of the Act envisages the grant of a permit to the owner alone must also be dissented from. 11. The learned counsel for the respondent says that at any rate the Act does not contemplate persons applying for permits Benami. In India Benami transactions are recognised and not frowned upon (See Gur Narayan v. Sheolal Singh). (1919) 46 Cal 566 In C.I.T., Gujarat v. Abdul Rahim and Co. [1965]55ITR651(SC) , it was held by the court that the registration of the partnership deed under Section 26-A of the Indian Income Tax Act, 1922, could not be refused on the ground that K was the Benamidar of .....

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