Supreme Court clarifies that partition suits involving benami exceptions cannot be dismissed at the outset.
Case in News
Partition suit not barred by Benami Act, Supreme Court rules in rejection plea under Order VII Rule 11 CPC .
Case Overview
Case Name : Smt. Shaifali Gupta vs. Smt. Vidya Devi Gupta & Ors. (& connected case)
In a key ruling on partition of joint property the Supreme Court of India held that a plaint cannot be rejected at the preliminary stage under Order VII Rule 11 of the Civil Procedure Code if a plea is taken that the property falls under the exception to the Benami Transaction Prohibition Act . The bench comprising Justice Pankaj Mithal and Justice Ahsanuddin Amanullah noted that such issues involve factual inquiries that must be tested through trial .
The case arose when the plaintiffs filed a suit seeking partition, declaration and injunction over family property. The defendants arguing that the suit was barred under the Benami Act and the Hindu Succession Act, sought to dismiss it under Order VII Rule 11 CPC . After the lower courts rejected this plea the matter reached the apex court .
Key Aspects
The ruling clarified several important procedural and factual concerns :
- Plaintiffs claimed the properties were joint family assets protected under the Benami Act’s exception .
- Defendants contended that the suit was legally barred and should be dismissed at the outset .
- Trial and High Courts refused to reject the plaint under Order VII Rule 11 .
- The factual nature of the dispute such as source of funds and family arrangements, required trial .
- The decision reaffirms the procedural safeguard against premature dismissal in property disputes .
Legal Insights
The Court relied on key legal principles and precedents :
- Order VII Rule 11(d), CPC : Allows rejection only if the suit is ex facie barred by law.
- Section 4(3)(a), Benami Transactions (Prohibition) Act, 1988 : Exception for property held for joint family .
- Pawan Kumar vs. Babu Lal (2019) 4 SCC 367 : Held that factual claims invoking Benami Act exceptions require trial .
Court’s Verdict
The Supreme Court upheld the High Court’s finding and dismissed the appeal . It ruled that since the plaintiff pleaded that the property was covered by the Benami Act exception such factual disputes required evidence and could not be decided at the stage of Order VII Rule 11 CPC . The partition suit, therefore, must proceed to trial .
Source- Supreme Court of India
Read also – Civil Procedure Code
