Section 4. Prohibition of the right to recover property held

4. Prohibition of the right to recover property held benami .— (1) No suit, claim or action to enforce any right in respect of any property held benami against the person in whose name the property is held or against any other person shall lie by or on behalf of a person claiming to be the real owner of such property. (2) No defence based on any right in respect of any property held benami , whether against the person in whose name the property is held or against any other person, shall be allowed in any suit, claim or action by or on behalf of a person claiming to be the real owner of such property. 6* * * * * 4. The Law Commission has, inter alia, recommended the inclusion of the following provisions in the Bill to replace the Ordinance, namely:— (i) benami transactions should cover all kinds of property: (ii) entering into a benami transaction after the commencement of the new law should be declared as an offence. However, an exception should be made for transactions entered into by the husband or father for the transfer of properties in the name of the wife or unmarried daughter for their benefit. By this the doctrine of advancement as obtaining in the English law will be incorporated into the Indian Statute Book; (iii) voluntary organisations should be authorised to file complaints about the entering of benami transactions and the District Judges should be designated as Tribunals. Even Gram Nyayalas recommended by the Law Commission may also be utilised for this purpose: (iv) as both the benamidar and the true owner are equal participants to a criminal transaction, by prohibiting the true owner's right to recover property held benami as provided in the Ordinance will be providing for an undue enrichment to the benamidar. As such, the Commission has suggested that the properties should be acquired from him by resorting to a procedure analogous to Chapter XXA of the Income-tax Act, 1961. It has been suggested that the same action has to be taken when benamidar retransfers the property back to the true owner for an apparent or no consideration to circumvent the provisions of the Ordinance; (v) in addition to section 82 of the Indian Trusts Act, 1882, as provided in the Ordinance, sections 31 and 94 of that Act should also be omitted: (vi) appointment of an authority, like, the Charity Commissioner, for supervising private trusts should be provided for.