Benami Act

Benami Act versus IBC: NCLT cannot override sovereign acts under penal statutes

Summary: The Prohibition of Benami Property Transactions Act, 1988, is a special penal statute and actions under it are sovereign actions. The Supreme Court recently settled that where an action is taken under such a penal statute, it being a sovereign action, is excluded from the jurisdiction of civil fora. This blog analyses how the Supreme Court resolves the conflict between two conflicting special legislations operating in different domain.Continue Reading Benami Act versus IBC: NCLT cannot override sovereign acts under penal statutes

Supreme Court strikes down the old benami law as unconstitutional

In a major relief to all the parties accused of being involved in benami transactions, a three-judge bench of the Supreme Court in the case of Ganpati Dealcom Pvt. Ltd.[1] has quashed all prosecution and forfeiture proceedings pertaining to transactions entered into before October 25, 2016. The old benami law i.e. Benami Transactions Act of 1988 ( “Benami Act”) was amended on the said date by the Benami Transactions (Prohibition) Amendment Act, 2016 (“2016 Amendments”) and the Supreme Court declared Section 3 and Section 5, introduced through this amendment, as unconstitutional.Continue Reading Supreme Court strikes down the old benami law as unconstitutional