Is It Possible for a Benamidar to Sell Property in Their Name Without the Real Owner’s Approval?

Is It Possible for a Benamidar to Sell Property in Their Name Without the Real Owner’s Approval?

 No, even though a benamidar’s entitlement to property may still have value, they are not allowed to sell it without the real owner’s permission.

 A family dispute that rocked Karachi’s Defence Housing Authority and ultimately reached the Supreme Court of Pakistan in 2019 revolved around a benamidar’s legal status.  This is about two sisters, a trusting relationship, and the lessons that can be learned from treachery; it’s not just about land and papers.

 Karachi, the Land of Dreams, is where the story starts.

 It was 1973.  The Defence Housing Authority (DHA) in Karachi was a promising new center.  Plot ownership there meant security, prestige, and a generational legacy for many families.

 One of the hopefuls was a proud Pakistan Army woman.  She was privileged to purchase prime DHA plots at discounted prices because of her service.  She submitted applications for two expansive plots, one commercial and one residential, each measuring 2000 square yards.  All debts were paid by 1983, at which point the plots were formally distributed.  As part of her meticulous future planning, she even split the residential plot into two smaller ones.

 However, concealed within these records was a deal with her younger sister that would subsequently blow up in court.

 The Promise of a Sister

 The younger sister asserted that she was the one who paid for the plots in full.  She claimed that her older sister lacked money and had no interest in real estate.  She intervened and provided funding on the condition that the younger would own the plots while the elder would apply under her military privilege.

 It was a trust that was sealed with blood rather than ink.  Or so she thought.

 The title documents were in the younger sister’s possession.  Although everything was legally in the elder’s name, she felt that the land belonged to her.  After the elder retired, they coexisted peacefully for many years.  But when land and money get in the way of love, family harmony is jeopardized.

 The Tipping Point

 Cracks grew by 1986.  The younger sister put pressure on her older sister to formally transfer the plots into her name.  The elder declined.  Bitterness replaced the silence.  Then the real shock hit: the older sister was getting ready to sell a residential plot to a stranger.

 The younger sister hurried to court, feeling deceived.  She requested a permanent injunction, which is a court order that prevents her sister from selling, and filed a suit for declaration, which is a legal action to assert ownership rights.  The sale was put on hold by the court until the case was resolved.

 But there was more to come.

 A Newcomer Arrives

 A man showed up and said he had already purchased both of the elder sister’s residential plots.  He was a buyer who claimed to have made a sincere payment, but he had no family.  He filed an application in accordance with Civil Procedure Code Order I Rule 10, which permits a party to join a case if they have a legal interest in it.  The sisters’ private conflict abruptly turned into a three-way fight after the court approved it.

 

 The buyer maintained that he was a bona fide buyer, which is a legal term that refers to a person who purchases real estate honestly, fairly, and without being aware of any hidden claims.  “I saw the DHA records,” he argued.  They displayed the older sister as the proprietor.  How could I be aware of the sisters’ confidential agreement?

 The Protracted Court Process

 Both sides were heard by the trial court.  The younger sister didn’t believe it.  It decided against the younger sister because the plots were in the elder’s name.  The appellate court concurred.  She has been hit twice.

 However, the Sindh High Court had a different perspective.  The elder sister was designated as a benamidar, or someone who holds property in their name on behalf of the true owner, and the younger sister was proclaimed the true owner.

 During the legal proceedings, the older sister died.  The decision was not contested by her heirs.  The buyer, however, was not prepared to give up.  He took the case all the way to the Supreme Court.

 The Supreme Court Battle

 Two issues emerged as the main legal question:

 Is it possible for a benamidar to sell real estate without the owner’s approval?

 As a legitimate buyer, could the buyer assert protection?

 The younger sister’s evidence was compelling: she had the original documents and bank records proving she paid for the plots.  She maintained that the plots were only given to her in her name because of her military privilege, not because her older sister actually owned them.

 However, the buyer asserted that he had paid Rs. 250,000 for one plot and Rs. 425,000 for another.  However, his agreements’ irregularities sparked suspicions.  Unlike the printed document, one was handwritten.  Additionally, he had not disclosed both transactions in his original filings.

 The Supreme Court had to strike a balance between fairness and hard law.

 An explanation of the legal rules in plain language

 Benamidar: A benamidar functions similarly to a name-holder.  On paper, they are the owner, but the person who made the payment or signed the contract is actually the owner.

 The real owner is the one who contributes funds or otherwise demonstrates their intention to own.

 A bona fide purchaser is a sincere buyer who pays fair market value without being aware that another party may have a claim.  They must demonstrate good faith and appropriate checks in order to be protected.

 The Benami Transactions (Prohibition) Act, 2017 was not yet in effect in Pakistan at the time of this case, so the court turned to earlier common law rules.

 The 2019 Verdict

 The Supreme Court issued its complex decision on June 28, 2019:

 Since her funds funded them, the younger sister was acknowledged as the owner of the second residential plot and half of the commercial plot.

 The military privilege of the older sister was significant.  It confirmed her sale of the first residential plot to the buyer and gave her the right to a half stake in the commercial plot.

 

 Due to discrepancies and a lack of due diligence, the buyer lost his claim to the second plot but kept the first.

 Human Insights in the Law

 It was a victory that was bittersweet for the younger sister.  She lost some of what she believed to be hers, but she was able to prove her ownership.  The elder sister’s legacy was divided between her personal preferences and her heirs.  The buyer discovered the hard way that paperwork alone is insufficient when he left with only a portion of what he had paid for.

 The case exposed a harsh reality: paperwork is king and trust is brittle in Pakistan’s real estate market.  Without precise, official evidence, family vows might not stand up in court.  Buyers should not merely rely on what the housing authority displays; they should thoroughly check title documents.

 

 FAQs

 

 Is it possible for a benamidar to sell property registered in their name without the actual owner’s approval?

 No.  Although some privileges (such as army allotments) may grant them partial rights, as demonstrated by the 2019 ruling, a benamidar cannot sell without consent.

 

 In property law, what is a benamidar?

 A person who holds property in their name for the benefit of the true owner is known as a benamidar.  Even though their name appears in official records, they are not the real owner.

 

 What qualifies a person as a legitimate buyer?

 A legitimate buyer makes an honest purchase at fair price without being aware of another party’s claim.  However, they cannot merely rely on records; they also need to verify original documents.

 

 Is it possible to enforce a benami agreement in court?

 Yes, but as the younger sister did in this instance, the claimant must demonstrate payment and ownership intent.

 

 What occurs if a benamidar passes away while a property dispute is going on?

 Depending on the evidence, their heirs may inherit their portion, but the rights of the true owner are still safeguarded.

 

 What impact does privilege have on property ownership in cases involving benami?

 Even if someone else paid, the benamidar may still have certain rights due to special entitlements (such as military service allotments).

 

 Disclaimer

 

 This blog is not legal advice; it is merely for public awareness.