1978 (11) TMI 16 - HC - Income Tax

Summary

Issues:
- Application for impleading a party in a pre-emption suit under CPC
- Interpretation of Section 281A of the Income Tax Act regarding benami property
- Justifiability of impleading the real owner in a pre-emption suit

Analysis:
The judgment pertains to a pre-emption suit where an application was made under section 151 of the CPC to implead the real purchaser of a property claimed to be benamidar. The trial court allowed the application and impleaded the real purchaser as a defendant. The petitioner, feeling aggrieved, filed a revision petition challenging the trial court's decision. The petitioner's counsel relied on Section 281A of the Income Tax Act to argue that the real owner could not be impleaded as a party in such cases. However, the court found no merit in this contention after considering the provisions of Section 281A. It was noted that Section 281A does not bar the impleading of the real owner as a party in a pre-emption suit, especially when the benamidar does not claim to be the real owner.

The court emphasized that the real owner, in this case, sought to contest the suit filed by the pre-emptor for possession and did not claim to enforce any right against the benamidar. Referring to previous judgments, the court held that it is appropriate to implead the real owner when the ostensible owner denies being the actual owner. The court cited various cases to support the view that impleading the real owner is essential for effectively adjudicating a pre-emption suit. Therefore, the court upheld the trial court's decision to implead the real owner as a party in the suit, stating that Section 281A of the Income Tax Act does not prevent such impleadment.

In conclusion, the court dismissed the petition, noting that no other points were raised. The parties were directed to appear before the trial court, and no costs were awarded. The judgment clarifies the applicability of Section 281A in cases involving benami properties and affirms the right to implead the real owner in pre-emption suits for effective adjudication.