Report No. 57

2.4. Benamidar representing the true owner.-

In general, the benamidar fully represents the owner of the property in dealings with the third persons. In fact, that is the very object of benami transactions. The property stands "in the name" of the benamidar, and a third party would not be able to challenge his title so long as the real owner does not come in the picture. The cases mentioned in the footnotes illustrate or discuss the application of this principle.1-2-3

At the same time, it is clear that the Benamidar cannot act in opposition to the real owner.4

1. Murlidhar v. Parmanand, AIR 1932 Bom 190 (Shingne J.).

2. Radhakrishnan v. Union of India, AIR 1959 Bom 102 (104, 105) (Shelat J.).

3. Gur Prasad v. Hansraj, AIR 1946 Oudh 144 (145) (reviews cases).

4. Radhakrishnan v. Union of India, AIR 1959 Born 102.