Report No. 57
6.29. Exception for past transactions.-
It is also necessary to make an exception for past transactions. The provision which we propose will be procedural in form, but will be substantive in its true character. We do not consider it desirable that it should apply to past transactions, because those transactions would have been entered into after keeping in mind the legal position as understood at present, namely, that the real owner can always enforce his rights against the benamidar. This position is now proposed to be reversed, and the reversal should not work in a manner which will defeat the intention of the parties who acted under the old law. Of course, those benami transactions which have been entered into with the object of carrying out fraudulent or illegal motives, and which therefore, fall within specific provisions enacted by the Legislature to prevent the abuse of the practice of benami1, are governed by those specific provisions, and the bar against retrospective operation of the new provision will not affect the operation of those specific provisions.
1. See Chapter 4, supra.