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Issues:
1. Whether the title to the suit-property vests in the petitioner or the respondent-plaintiff. 2. Whether the respondent-plaintiff is entitled to the declaration and recovery of possession of the property. 3. Interpretation and application of Section 66 of the Civil Procedure Code (C.P.C) and the Benami Transactions (Prohibition) Act, 1988. 4. Determination of the fiduciary relationship between the petitioner and the respondent-plaintiff under the Indian Trust Act. Analysis: 1. The judgment revolves around the dispute regarding the ownership of a property purchased by the petitioner, who was acting as an agent and Power-of-Attorney holder of the respondent-plaintiff. The courts found that the petitioner had purchased the property using funds belonging to the respondent and had obtained the sale certificate without her knowledge or consent, thereby acting in a fiduciary capacity. The High Court rightly considered the questions of law regarding the title to the property and the entitlement of the respondent-plaintiff to seek possession. 2. The judgment delves into the legal implications of Section 66 of the Civil Procedure Code, which prohibits suits against a person claiming title under a purchase certificate obtained through court auction. However, exceptions exist under Sub-section (2) of Section 66, allowing suits to declare fraudulent insertion of names in the certificate. The court emphasized the public policy behind Section 66 to prevent fraud and benami transactions, ensuring genuine bidders secure clear title. It highlighted the right of a real owner to challenge fraudulent entries in the sale certificate. 3. The analysis further explores the application of the Indian Trust Act in determining the fiduciary relationship between the petitioner and the respondent-plaintiff. Section 88 of the Trust Act establishes that an agent or trustee must protect the interests of the principal and hold the property for their benefit. The judgment clarifies that the petitioner, as an agent, was obligated to act in the best interests of the respondent-plaintiff and hold the property in trust. The court dismissed the plea of benami transactions under the Benami Transactions (Prohibition) Act, asserting the fiduciary duty of the agent to account for any unauthorized benefits derived from the property. 4. Ultimately, the High Court correctly concluded that the petitioner was an agent and trustee acting in a fiduciary capacity for the respondent-plaintiff. Despite fraudulently obtaining the sale certificate in his name, the petitioner was deemed to hold the property in trust for the respondent. The court rejected the lower courts' reliance on Section 66(1) of the Civil Procedure Code, allowing the respondent-plaintiff to claim title and possession of the property. The special leave petition was dismissed with exemplary costs imposed on the petitioner for abusing the judicial process, with the costs directed to the Supreme Court Legal Aid Committee for recovery.
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