A property purchased by the husband in the name of his wife from known sources can’t be treated as benami property. The High Court held that it was to be proved during trial whether the property was purchased through known or unknown sources of income and it can’t be automatically assumed that it is benami if the husband bought it in the wife’s name.
The existence of the properties in the name of the wife will fall as an exception to the prohibited benami transaction as it is legally permissible for a person to purchase an immovable property in the name of his spouse only from known sources as stated by Justice Valmiki Mehta.
The court was hearing a challenge filed by a husband against the decision of the trial court to reject his suit where he had asked for injunction and other reliefs with respect to two properties. The trial court discarded the plea treating the properties as benami even though these were purchased by the client with his own sources.
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