In Brief
An appellant challenged dismissal of his suit for declaration of title to property purchased with his own funds but registered in his father's name. The trial court and high court rejected the suit as barred under Section 4 of the Benami Transaction (Prohibition) Act, 1988, based solely on averments in the pleading. The Supreme Court held that whether a benami transaction falls within statutory exceptions (such as fiduciary relationships) must be determined after full trial and evidence, not at the preliminary pleading stage under Order VII Rule 11 CPC. Disputed factual questions cannot be resolved at the application stage. The appeal was allowed and the case remitted for trial.
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