Jayadayal Poddar v Bibi Hazra (1974)

Transfer of Property · Ostensible Owner

Facts.

A dispute turned on whether a purchase in one person’s name was really made on that person’s own behalf or benami for another — the recurring question behind ostensible ownership.

Issue.

By what criteria does a court decide whether a transaction is benami, and who bears the burden of proof?

Held.

The Supreme Court held that whether a transaction is benami is a question of fact, and the burden lies on the person asserting it. The court weighs, in particular: (1) the source of the purchase money; (2) the nature and possession of the property after purchase; (3) the motive for taking it in another’s name; (4) the relationship of the parties; (5) their conduct in dealing with the property; and (6) the custody of the title-deeds. The source of the purchase money is the most important, though no single test is conclusive.

Why it matters.

It gives the checklist a court uses to identify the true owner behind a benami holding — the practical companion to s.41 and the standard authority cited on benami questions.

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