Law:

Section:

Section 4 of the Benami Transactions (Prohibition) Act, 1988 - Benami transactions - Prohibition of- Whether prohibition under section 4 will apply only to proceedings in nature of a suit, claim or action to enforce any right spoken of in section 4(1) to be initiated after provisions of Act came into force - Held no - Whether it will also apply to proceedings initiated anterior to it, but which have not been put an end to once and for all in eye of law - Held, yes FACTS One A was married to U. She was subsequently divorced. A had purchased the suit property benami in the name of U. After divorcing U, A married M, mother of the appellants. Possession of the aforesaid property continued with A and he sold the suit property to the appellants. However, U also sold the aforesaid property to respondents, who tried to interfere with the possession of the waramdar under the appellants of the suit property. The first Court decreed the suit of the appellants for declaration of the title and for recovery of possession. On appeal, the lower Appellate Court reversed the finding of the lower Court. On appeal: HELD The expression 'shall be' contained in section 4(1), does not mean to annex to it a stringent meaning so as to say that it would apply only to proceedings of the nature of a suit, claim or action to enforce any right spoken of in section 4(1) to be initiated after the provisions of the Act came into force, and not to proceedings initiated anterior to it, but which have not been put an end to once and for all in the eye of law. It would take in also a case where the suit, claim or action already laid is being prosecuted stage after stage until finally disposed of, as permitted by law and wherein no finality or collusiveness has been reached. Until and unless a finality or conclusiveness therein is reached in the eye of law, the case will come within the expression 'shall lie'. The expression, in the context in which it appears and giving due significance to the objects and reasons behind the statute in which it is found, must be given the meaning that the plea shall not be advanced, prosecuted, pressed forth or placed in any suit, claim or action, whatever be the…

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