A Benami Property Cannot Be Claimed Through A Benamidar’s Will: The Supreme Court Settles The Law

I. Introduction

Benami transactions have long served in India as a device to circumvent statutory restrictions including property ownership and conceal beneficial ownership from tax and regulatory authorities. This mischief is well known when a person pays the consideration for a property but acquires it in the name of another, thereby separating real ownership from ostensible title. Despite the enactment of the Prohibition of Benami Property Transactions Act, 1988¹ (“Benami Act”), which introduced a comprehensive framework for confiscation and prosecution, their interplay with civil procedure has continued to engage courts at all levels. The Supreme Court's recent decision in Manjula and Others v. D.A. Srinivas² , addresses these strategies head-on and delivers a judgment that significantly strengthens the enforcement architecture of the Benami Act while also laying down important principles of the Code of Civil Procedure, 1908³ (“CPC”).