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Report No. 57

1.8. Judicial recognition of benami.-

Whatever the factors which led to the practice of benami, there is no doubt that it has a firm footing in the legal system. Judicial recognition of the practice came very early in India. In one of the very early Calcutta cases,1 a purchase in the name of the wife's name was held to be "Farzi"2 (fictitious). It was held that the property vested in the person to whom the grant was actually made, and not necessarily in the person whose name was made use of.

1. Sheikh Bahadur Ali v. Sheikh Dhomu, 1 Cal Sud R Diw Rep 250 (251), cited in Tyabji Muslim Law, (1968), p. 396, foot note 1.

2. (a) Balaniyappa Chetty v. Arumugon Chetty, (1864) 2 MHCR 26.

(b) Bipen Beharee Chaudhry v. Ram Chunder Roy, (1870) 14 WR 12 (15), (common form of Benami).

(c) Tagore v. Tagore, 1872 IA Supp 47 (71) ("Tagore Case").

(d) Ravji v. Mahadev, 1897 ILR 22 Born 672.

(e) Akbar Aliv. Mahomed Faiz Buksh, (1871) 15 WR 12 (14).

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