Legal Case Summary

Case Details
Case ID ffff5dfd-c3d7-403b-870c-320f90eb185e
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Case Number CIVIL REVISION PETITION No. 1883 OF 1977
Decision Date Nov 09, 1978
Hearing Date Nov 09, 1978
Decision The trial court was justified in impleading Ranjit Singh as a party to the suit. Section 281A of the Income-tax Act, 1961, is no bar to the impleading of the real owner as a party in the pre-emption suit. The petition filed by Dina Ram was dismissed, and the parties were directed to appear before the trial court on November 27, 1978. No order as to costs was made.
Summary In this landmark case heard by the Punjab and Haryana High Court, the central issue revolved around the application of Section 281A of the Income-tax Act, 1961, concerning benami properties. The petitioner, Dina Ram, filed a suit for possession by way of pre-emption against the defendant, Rama Nand. During the proceedings, Ranjit Singh claimed to be the real owner of the property, stating that Rama Nand was merely a benamidar. The trial court allowed Ranjit Singh to be impleaded as a party. Dina Ram challenged this decision, citing Section 281A as a barrier to such impleading. However, the court held that since Ranjit Singh was not enforcing any right against the benamidar or any other person, Section 281A did not apply. The court emphasized that in cases where the ostensible owner does not claim real ownership, the real owner should be impleaded to ensure effective adjudication. This case underscores the importance of correctly identifying the real owner in pre-emption suits and highlights the judicial interpretation of Section 281A in such contexts.
Court Punjab and Haryana High Court
Entities Involved Ranjit Singh
Judges Prem Chand Jain, J.M. Tandon
Lawyers M.S. Liberhan, V.M. Jain
Petitioners Dina Ram
Respondents Rama Nand
Citations 1980 SLD 1228, 1980 126 ITR 486
Other Citations Jagdish Khattar v. Ram Kishan [1971] PJL 242, Harsaran v. Mt. Dilraji [1908] 8 IC 527, Mt. Ram Sakhi Kuar v. Lachmi Narain Lal AIR 1924 All. 802, Sankatha Prasad v. Mt. Rukmani [1939] AIR 1939 All. 81
Laws Involved Income-tax Act, 1961
Sections 281A