REGISTERED No. D(DN)127/88 The Gazette of India EXTRAORDINARY
PART II—Section 1 PUBLISHED BY AUTHORITY No. 28] NEW DELHI, THURSDAY, MAY 19, 1988/VAISAKHA 29, 1910 Separate paging is given to this Part in order that it may be filed •a a separate compilation MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 19th May, 1988/Vaisakha 29, 1910 (Saka) THE BEN AMI TRANSACTIONS (PROHIBITION OF THE RIGHT TO RECOVER PROPERTY) ORDINANCE, 1988 No. 2 OF 1988 Promulgated by 'the President in the Thirty-ninth Year of the Republic of India. Ah Ordinance to prohibit the right to recover property held benami and for matters connected therewith or incidental thereto. WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action; , Now, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance: —
1. (1) This Ordinance may be called the Benami Transactions (Prohibition of the Right to Recover Property) Ordinance, 1988.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force at once.
( 1 ) Short title, extent and commencement. THS GAZETTE OF INDIA EXTRAORDINARY [PAST II SEC. 1] Prohibition of fha right to rtcover held benami. Act not t» tpply i» certain cases. of provi»ions of certain Acts.
2. (I) No suit, claim or action to enforce any right in respect of any property held benami against the person in whose name the property is held or against any other person shall lie by or on behalf of a person claiming to be the real owner of such property.
(2) No defence based on any right in respect of any property held benami, whether against the person in whose name the property is held or against any other person, shall be allowed in an,y suit, claim or action by or on behalf of a person claiming to be the real owner of such property.
(3) Nothing in this section shall apply,—
(a) where the person in whose name the property is held is a co-parcener in a Hindu undivided family and the property is held for the benefit of the co-parceners in the family; or
(b) where the person in whose name the property is held is a trustee or other person standing in a fiduciary capacity, and the property is held for the benefit of another person for whom he is a trustee or towards whom he stands in such capacity-
3. Nothing in this Act shall affect the provisions of section 53 of the Transfer of Property Act, 18&2, or any law relating to transfers for an illegal purpose.
4. (1) Section 82 of the Indian Trusts Act, 1882, section 66 of the Code of Civil Procedure, 1903 and section 281A of the Income-tax Act, 1961, are hereby repealed.
(2) For the removal of doubts, it is hereby declared that nothing in sub-section (I) shall affect the continued operation of section 281A of the Income-tax Act, 1961, in the State of Jammu and Kashmir. 4 of 18B3. 2 Qt 1862. 5 of 1908. 43 of IQffl. 43 of 1061. R. VENKATARAMAN, President. S. RAMAIAH, Secy, to the Govt. of In&ia. PlUKTKB BY THE MANAG1R, GOVERNMENT OF INDIA PRESS, MXNTO HOAD, HlilW D I U H AMD PUBLISHED BY TUB CONTROLLER OF PUBLICATIONS, DELHI, 1&88