Rekha W/O Ramesh Alias Ramanagouda … vs Pawankumar S/O Rameshgouda Alias … on 9 April, 2026

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    Karnataka High Court

    Rekha W/O Ramesh Alias Ramanagouda … vs Pawankumar S/O Rameshgouda Alias … on 9 April, 2026

    Author: Ravi V.Hosmani

    Bench: Ravi V.Hosmani

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                                                                           NC: 2026:KHC-D:5306
                                                                    CRP No. 100002 of 2025
    
    
                                 HC-KAR
    
    
    
    
                                IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
                                      DATED THIS THE 9TH DAY OF APRIL, 2026
                                                      BEFORE
                                     THE HON'BLE MR. JUSTICE RAVI V.HOSMANI
                                 CIVIL REVISION PETITION NO.100002 OF 2025
                                BETWEEN:
    
                                1.     REKHA W/O RAMESH @ RAMANAGOUDA
                                       RUDRAGOUDAR,
                                       AGE. 55 YEARS, OCC. HOUSEHOLD WORK,
                                       R/O. KURUGOVINAKOPPA, TQ. NARAGUND,
                                       DIST. GADAG-582206.
    
                                2.     LAXMI D/O RAMESH @ RAMESHGOUDA
                                       RUDRAGOUDAR,
                                       (LAXMI W/O RAMACHANDRA SATYARADDI),
                                       AGE. 32 YEARS, OCC. HOUSEHOLD WORK,
                                       R/O. KURUGOVINAKOPPA, TQ. NARAGUND,
                                       DIST. GADAG-582206.
    
                                                                                 ...PETITIONERS
                                (BY SRI ARUN L. NEELOPANT, ADVOCATE)
                                AND:
    CHANDRASHEKAR
    LAXMAN
    KATTIMANI
                                PAWANKUMAR
    Digitally signed by
                                S/O RAMESHGOUDA @ RAMANAGOUDA RUDRAGOUDAR,
    CHANDRASHEKAR
    LAXMAN KATTIMANI
    Location: High Court of
    Karnataka, Dharwad Bench
    Date: 2026.04.09 10:09:28
                                AGE. 33 YEARS, OCC. AGRICULTURE AND BUSINESS,
    +0100
    
    
                                R/O. VAJJARMATTI, TQ. MUDHOL,
                                DIST. BAGALKOT-587313.
                                                                          ...RESPONDENT
                                (BY SRI SB HEBBALLI, ADVOCATE FOR C/R)
    
                                       THIS CRP IS FILED UNDER SECTION 115 OF CPC, PRAYING
                                TO SET ASIDE THE IMPUGNED ORDER DATED 26.09.2024
                                PASSED     BY   THE ADDITIONAL    SENIOR    CIVIL JUDGE AND
                                JUDICIAL    MAGISTRATE   FIRST    CLASS,     MUDHOL     IN   OS
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                                                         NC: 2026:KHC-D:5306
                                                    CRP No. 100002 of 2025
    
    
        HC-KAR
    
    
    
    
    NO.348/2022 REJECTING I.A.NO.II FILED BY THE PETITIONERS
    UNDER ORDER 7 RULE 11(A),(B), (C) AND (D) OF CPC SEEKING
    TO REJECT THE PLAINT AS PER ANNEXURE-A AND ALLOW THE
    IA NO.II FILED UNDER ORDER 7 RULE 11(A)(B)(C) AND (D) CPC
    IN OS NO.348/2022, IN THE ENDS OF JUSTICE AND EQUITY.
    
    
               THIS CRP COMING ON FOR DICTATION, THIS DAY,
    ORDER WAS MADE THEREIN AS UNDER:
    
    
    CORAM:            THE HON'BLE MR. JUSTICE RAVI V.HOSMANI
    
                                      ORAL ORDER

    Challenging order dated 26.09.2024 passed by Additional

    Senior Civil Judge and JMFC, Mudhol1, on IA no.II in OS

    SPONSORED

    no.348/2022, this petition is filed.

    2. Sri Arun L. Neelopant, learned counsel for petitioners

    submitted that petitioners were defendants no.1 and 2 in OS

    no.348/2022 filed by respondent herein (plaintiff) for declaration

    that gift deed dated 06.07.2022 executed by defendant no.1 in

    favour of defendant no.2 as null and void; for mandatory

    injunction directing defendant no.1 to execute registered

    reconveyance sale deed and permanent injunction restraining

    1
    For short, ‘Trial Court’
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    HC-KAR

    defendants from interfering with plaintiff’s peaceful possession

    over suit property etc.

    3. It was submitted, in plaint, plaintiff stated that

    defendants no.1 and 2 were his mother and sister. And that

    entire sale consideration for purchase of suit property under

    registered sale deed dated 25.03.2022 was paid by plaintiff. In

    view of same, defendant no.1 had subsequently, reverted land

    bearing Sy.no.266 measuring 7 Acres 15 guntas to plaintiff

    under registered gift deed. However, defendant no.1 illegally

    transferred other land bearing Sy.no.265 measuring 5 Acres 12

    guntas, in favour of defendant no.2, as if she was absolute

    owner thereof.

    4. On appearance, defendant filed IA no.II under Order

    VII Rule 11 (a) to (d) of Code of Civil Procedure, 1908 (‘CPC‘,

    for short) for rejection of plaint contending that plaint did not

    disclose cause of action and that sale deed dated 25.03.2022

    showed consideration amount of Rs.32,50,000/-. It was

    submitted, even on a complete and meaningful reading of entire

    plaint, it would emerge that plaintiff’s claim in respect of suit

    property was about their purchase by plaintiff in name of
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    defendant no.1, which would be hit by Sections 4 and 9 of

    Benami Transactions (Prohibition) Act, 1988 (‘BT Act‘, for

    short). It was contended, plaint did not disclose basis for

    plaintiff’s claim and as defendant no.1 had received land

    acquisition compensation amount for submergence of her

    Stridhana properties, she had money for purchase of suit

    property. Further, plaintiff claimed relationship between plaintiff

    and defendant no.1 was fiduciary in nature even when as on

    date of sale deeds, i.e. 25.03.2022, when he would have been

    30 years of age. Therefore, claim of defendant being in fiduciary

    capacity to plaintiff was without basis. Apart from above, even

    plaintiff’s claim that he had paid Rs.1,67,82,500/- towards

    purchase of suit property, without particulars about source of

    such huge amount.

    5. Though above contentions were duly urged, under

    impugned order, trial Court rejected IA no.II by overlooking

    above contentions. In support of his submission he relied on

    decision of Hon’ble Supreme Court in case of Sri Nimbanna v.

    Shivananda Kinnal and Anr.2, for proposition that when it was

    asserted in plaint that a property was purchased by a person
    2
    SLP (C) No.27426 of 2018, Disposed of on 01.02.2021
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    from his funds in name of another, bar under Section 4 of BT

    Act, would apply and contention that such other person was

    holding it in fiduciary capacity would not be available. Under

    above circumstances, rejection of application on cursory

    reasoning that whether transaction had taken place in fiduciary

    capacity and exempt from applicability of provisions of BT Act

    would require trial, amounted to material irregularity calling for

    interference by this Court.

    6. On other hand, Sri SB Hebballi, learned counsel for

    respondent (plaintiff) opposed petition. At outset, it was

    submitted, suit claim was based on plaintiff’s assertion that

    defendant no.1 was plaintiff’s mother and defendant no.2 his

    sister and that he was very affectionate towards them. He had

    also stated that on 23.06.2021, Smt.Sujata w/o Shivanagouda

    Patil, Shivanagouda Krushnagouda Patil, Sachchidanand

    Shivanagouda Patil, Smt.Rajeshwari Shivanagouda Patil had

    executed a registered agreement of sale in favour of plaintiff and

    defendant no.1 in respect of suit property. He had also stated

    that defendant no.1 did not have any source of income and her

    name was added out of love, affection and respect. Plaintiff had
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    also provided particulars about manner and mode of payment of

    consideration for transaction including borrowing loan from ICICI

    Bank. Plaintiff had also stated that defendant no.1 had agreed

    that her name was added for dummy sake and entire sale

    consideration was paid by plaintiff. Therefore, he allowed

    vendees to execute sale deeds exclusively in name of defendant

    no.1. He had also stated that as per agreement on 10.05.2022,

    defendant no.1 reverted back land bearing RS no.266 by

    executing registered gift deed but, had illegally gifted land

    bearing RS no.265 in favour of defendant no.2.

    7. It was submitted, plaintiff had clearly stated cause of

    action arose on 25.03.2022 when sale deeds were executed in

    favour of defendant no.1 only and subsequently when she

    illegally transferred one of properties in favour of defendant no.2

    and thereafter, when defendant no.2 began asserting her title

    over said property.

    8. Thus, pleading in plaint would indicate that plaintiff’s

    claim would fall within exceptions to bar under BT Act. It was

    submitted, even while dismissing IA no.II, trial Court had

    observed that matter required trial and contentions of
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    defendants were not foreclosed. In view of above, impugned

    order did not suffer from any legal infirmity calling for

    interference and sought dismissal of petition.

    9. In support of his submission he relied upon decisions

    of Hon’ble Supreme Court in case of Pawan Kumar v. Babulal

    since deceased through LRs and Ors.3, for proposition that

    whether suit was barred by provisions of BT Act or whether

    saved by exception under Section 4 (3) of BT Act would require

    trial and could not be decided while considering application under

    Order VII Rule 11 of CPC.

    10. Reliance was also placed on Smt.Shaifali Gupta v.

    Smt.Vidya Devi Gupta and Ors.4, for proposition that

    objections raised by defendants about maintainability of suit in

    view of bar under BT Act would be mixed question of fact and

    law and are to be considered only on basis pleadings and

    evidence of parties and not at threshold on basis of plaint

    allegations alone. On above grounds, sought for dismissal of

    revision petition.

    3
    (2019) 4 SCC 367
    4
    2025 SCC OnLine SC 1181
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    11. Heard learned counsel for parties and perused

    impugned order.

    12. This revision petition is by defendants no.1 and 2

    challenging rejection of their application filed under Order VII

    Rule 11(a) to (d) of CPC.

    13. From above, it is seen that challenge against

    impugned order is based mainly on suit being barred under

    Section 4 of BT Act.

    14. There can be no quarrel about law that while

    considering an application under Order VII Rule 11 of CPC,

    averments in plaint alone would be material and defence set-up

    would be irrelevant. Though from decisions in Pawan Kumar

    and Smt.Shaifali Gupta’s cases (supra), it would appear that

    normally plea of suit being barred by provisions of BT Act would

    be mixed question of law and fact and would not be appropriate

    to be decided on a plaint averments alone, in Nimbanna‘s case

    (supra), it is held, where assertions in plaint are unequivocal and

    attract bar under Section 4 of BT Act, trial Court would be
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    justified in considering application under Order VII Rule 11 of

    CPC and nipping in bud frivolous suits.

    15. There is no dispute that as per definition of ‘benami

    transaction’ under Section 2 (a) of BTA means and includes

    transactions wherein a property is transferred to or is held by a

    person and consideration for such property is paid by another

    person.

    16. On a complete and meaningful reading of entire

    plaint averments reveals, it is specific and unequivocal case of

    plaintiff that suit property along with another was purchased

    under registered sale deed dated 25.03.2022 exclusively in name

    of defendant no.1 even though entire consideration was paid by

    plaintiff along, as defendant no.1 was mother of plaintiff and he

    was very affectionate towards her and also out of respect, with

    agreement that she would revert back properties to him. It is

    also stated that prior to sale deed, vendors had executed an

    agreement of sale wherein said properties were agreed to be

    sold in joint names of plaintiff and defendant no.1.

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    17. Thus, there is clear assertion about purchase of suit

    property in name of defendant no.1 on consideration paid by

    plaintiff. It is also seen prayers (A) and (B) sought in suit are for

    declaration about gift deed executed by defendant no.1 in favour

    of defendant no.2 in respect of suit property as null and void and

    for mandatory injunction directing defendant no.1 to execute

    registered sale deed by way of re-conveyance in favour of

    plaintiff.

    18. Though a claim is made about sale transaction being

    in fiduciary capacity, as noted in Nimbanna‘s case (supra),

    there is no assertion by plaintiff that consideration for

    transactions were made out of joint family funds. On other hand,

    it is specifically asserted that entire consideration was paid by

    plaintiff alone. There is also no assertion that property was held

    by defendant no.1 for benefit of Hindu Undivided Family. It is

    rather asserted that defendant no.1 held it for benefit of plaintiff

    alone.

    19. In view of above, unequivocal facts, there would be

    no need to allow suit clearly attracting bar under provisions of BT

    Act to proceed to trial. Trial Court was not justified in rejecting

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    application on ground, whether transaction was in fiduciary

    capacity required evidence. Therefore, it is held rejection of

    application by trial Court suffers from material irregularity.

    20. Consequently, following:

    ORDER

    i) Revision Petition is allowed. Impugned
    order dated 26.09.2024 passed by
    Additional Senior Civil Judge and JMFC,
    Mudhol, on IA no.II in OS no.348/2022 is
    set-aside.

    ii) IA no.II is allowed, consequently, plaint in
    OS no.348/2022 stands rejected.

    iii) Pending applications, if any, stands
    disposed of as unnecessary.

    Sd/-

    (RAVI V.HOSMANI)
    JUDGE

    CKK
    LIST NO.: 2 SL NO.: 1



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