Benami Law in Pakistan (بینامی قانون)

Benami Law in Pakistan (بینامی قانون)
 

 

BENAMI TRANSACTIONS:

The benami transaction is any transaction in which property is transferred to one person for a consideration paid by another person. Benami Transaction is fully recognised in Pakistan.

Burdon of Proof:

Whenever a person alleges a transaction to be of Benami, the initial onus lies on him to prove the same, but the onus may shift during the evidence if he proves the ingredients of the transaction, then the burden is on the defendant to disprove the allegations.
2008 PLR (D.I.Khan) 137(a)

Ingredients of Benami Transaction:

(1) Source of Construction
(2) From whose custody the original title, bill and other documents came in evidence.
(3) Who is in possession of the suit property
(4) Motive for Benami Transaction

Benami Transaction Explained:

In a Benami the position is converse as the party claiming a transaction to be Benami had to show that the person in whose favour a property stands was not in a financial position to pay for the same e.g. a wife having no income or money of her own or minor or son or daughter.
2003 CLR (Karachi) 1856(b)

CASE LAWS::

source of income of her own. Effect: Suit property purchased in the name of deceased in life time of her husband would be presumed to have been purchased in her name by her late husband, thus was Benami Transaction.
2009 CLC (Karachi) (e) 1057

Onus of the particular sale / purchase if Benami and the apparent purchaser is not the real owner always rests on the person asserting it to be so. Determining factors to be taken into consideration enumerated.
2009 SCMR (a) 124

Possession of sale deed and possession of property for four years had some evidentiary value. Sale deed was executed before marriage between parties and there was no reason for plaintiff to handover title documents to defendant if transaction was Benami. Plaintiff failed to prove transaction as Benami in favour of defendant. Suit was dismissed in circumstances.
2009 CLC (Karachi) (c) 324

Plaintiff alleged that the amount of consideration was paid from her own Bank account. Amount remitted in the account maintained by the plaintiff was sent by the defendant and the same was proved from the statements of plaintiff witnesses. Effect: Amounts out of which the land in question was purchased, were remitted by the defendant in the account maintained in the name of the plaintiff and thus the plaintiff purchased the land in question from the said amount. Land in question was purchased from the income of the defendant. Plaintiff failed to prove payment of consideration amount in circumstances.
2002 YLR 1311 (D)

For determining the question whether a transaction is a Benami Transaction or not and according to the law, factors to be taken into consideration were the source of consideration; from whose custody the original title deed and other documents came in evidence; who is in possession of the suit property; and motive for the Benami Transaction.
2002 YLR 1311(b)

Motive for such transaction: Where a person is issueless, the same makes out a strong motive for a Benami Transaction.
2001 CLC 1599 (c)

 

 

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