A single judge of Delhi High Court held that, it is legally permissible for a person to purchase an immovable property in the name of his spouse from his known sources, and in which position, the property purchased will not be a benami property but the property will be of the de jure owner/plaintiff/husband and not of the de facto owner (in whose name title deeds exist), being the respondent/defendant/wife.
Manoj Arora Vs Mamta Arora on 7 Aug 20184. Unfortunately, the trial court has committed a grave and fundamental error in rejecting the suit plaint under Order VII Rule 11 CPC by relying upon the provision of Section 4 and repealed provision of Section 3(2) of the Benami Transactions (Prohibition) Act. When the impugned judgment was passed on 19.12.2016, what was, and is now applicable is the Prohibition of Benami Property Transactions Act, 1988 which became applicable w.e.f 1.11.2016. As per Section 2(9) of the Amended Act what is a Benami Transaction is stated/specified, and also those transactions which are not benami are are also stated/specified. As per the suit plaint/averments, in the present case the existence of the properties in the name of the respondent/defendant/wife will fall as an Exception to the prohibited benami transaction in view of Section 2(9)(A)(b) Exception (iii) inasmuch as it is legally permissible for a person to purchase an immovable property in the name of his spouse from his known sources, and in which position, the property purchased will not be a benami property but the property will be of the de jure owner/plaintiff/husband and not of the de facto owner (in whose name title deeds exist), being the respondent/defendant/wife in the present case.
Citations: [2018:DHC:4920], [LAWS(DLH)-2018-8-124], [(2018) 08 DEL CK 0082]
Other sources:
https://indiankanoon.org/doc/75898278/
https://www.casemine.com/judgement/in/5b6ed88e9eff430e1391a346
https://lextechsuite.com/Manoj-Arora-Versus-Mamta-Arora-2018-08-07
https://www.the-laws.com/Encyclopedia/browse/Case?CaseId=108102076300&Title=MANOJ-ARORA-Vs.-MAMTA-ARORA
https://www.courtkutchehry.com/Judgement/Search/t/5102027-manoj-arora-vs-mamta-arora?s=&refine_search=&s_acts=Benami%20Transactions%20(Prohibition)%20Act,%201988
