Report No. 57
6.28. Exception recommended for certain cases.-
While enacting the provision which we have recommended,1 it would be desirable to make exceptions in the case of acquisition made by a karta for himself and the members of the joint Hindu family, or by the trustees for the beneficiary of the trust and similar situations. In the case of a joint Hindu family, the ordinary situation arising in this connection would be where the property stands in the name of the manager or member, but actually belongs to the whole family. Here the member in whose name the property is held is himself a beneficiary. In the case of a trustee, the property would ordinarily stand in the name of the trustee, who is not beneficially entitled.
The two situations are, thus, different; but the reason for making a combined exception for the two situations (and other similar situations) is the common one, arising from the fact that the section which we propose will bar a suit to enforce a right on the ground that the person in whose name the property is held, is not the real owner. In the situations to which we have referred, it is obviously desirable that this new section, if applied literally, would create a result which is the opposite of what is intended by the legal position as understood at present. Hence the need for an exception.
1. Para. 6.27, supra.