AIR 1994 SUPREME COURT 2694 ::(1994) 2 LS 15 ::1994 (2) CivilCourtC 68

Supreme Court Of India

(From : Kerala)*

Hon'ble Judge(s): K. Ramaswamy, G. N. Ray , JJ

Benami Transactions (Prohibition) Act (45 of 1988) , S.4(3)— Bar of plea of benami - Applicability - Property purchased by agent and power of attorney holder of plaintiff in Court auction - Agent getting his name entered in sale certificate fraudulently - He still holds property in trust and on behalf of plaintiff his principal - Suit by plaintiff for declaration of her title and possession of disputed property not barred by S.4. Trusts Act (2 of 1882) , S.88— When an agent was employed to purchase the property on behalf of his principal and does so in his own name, then, upon conveyance or transfer of the property to the agent, he stands as a trustee for the principal. The property in the hands of the agent is for the principal and the agent stands in the fiduciary capacity for the beneficial interest he had in the property as a trustee.(Para 3) Where the agent and power of attorney holder of the plaintiff purchased in the Court auction the suit property from the funds of the plaintiff his principal, and fraudulently got his name inserted in the sale certificate, the bar under S.4 of Benami Act would not stand in the way of plaintiff's suit for declaration of her title and possession of the suit property.(Para 3 4) .....