Law:

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Section 3 of the Benami Transactions (Prohibition) Act, 1988 - Benami transactions - One G purchased suit property in 1928 in name of his wife, second respondent - Second respondent sold it in 1963 - In a writ, appellant, son of second respondent, claimed that second respondent held aforesaid property benami for her husband and their sons, and as such, she should be restrained from selling same - Whether section 3 is prospective in operation and as suit was instituted prior to commencement of Act to enforce a right against respondent, and against purchaser, provisions of section 3 were not attracted and appellant was not entitled to any relief - Held, yes Section 4 of the Benami Transactions (Prohibition) Act, 1988 - Bar of suits - Whether bar under section 4 applies not only in respect of pending proceedings based on past benami transactions, whether in trial Court or appellate Court, but also to proceedings initiated or defence taken after commencement of Act in respect of transactions entered into either prior to commencement of Act or after commencement of Act - Held, yes FACTS One G purchased the suit property in 1928 in the name of his wife, the second respondent. The suit property was sold by the second respondent, being the mother of the appellant, vide sale deed dated 30-11 -1963 in favour of the first respondent. The appellant filed suit against the respondents praying for relief, inter alia, declaring that the sale deed did not bind him and for declaring that he had one-fourth share in the aforesaid property and for partition and separate possession of the share and that the respondent be restrained from disturbing his joint possession and enjoyment of the suit property. The Munsif held that the appellant had not proved that his father bought the suit property as manager of the joint family consisting of himself and his sons from out of the joint family funds, benami in the name of first respondent and that the appellant had not proved that he had one-fourth share in the suit property. He, therefore, passed a decree and dismissed the suit. On appeal the civil Judge held that G had purchased the property in question without notice of benami, for,…

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