In Brief
A son purchased a property in his elderly father's name but arranged all funds himself. Nine years after suit was filed for declaration of title, the defendant applied to reject the plaint under the Benami Transaction (Prohibition) Act. Trial and High Courts dismissed the suit as barred by law. The Supreme Court reversed this, holding that whether a property transaction falls within the Act's fiduciary capacity exemption requires evidence and factual enquiry, not mere pleading analysis. Summary dismissal under Order 7 Rule 11 CPC is improper when the plaint's averments potentially fall within statutory exceptions. The case was remitted for trial on merits.
The lawyer headnote and full judgment text are available to registered users.