Section 25 of the Benami Act: Manner of Service of Notice

Section 25 of the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) prescribes the manner in which a notice issued under Section 24(1) may be served and identifies the person to whom such notice may be addressed for different categories of persons and entities.

Current statutory name: The principal legislation is the Prohibition of Benami Property Transactions Act, 1988 (Act 45 of 1988). The Benami Transactions (Prohibition) Amendment Act, 2016 substantially amended the 1988 Act, including inserting the present statutory framework containing Section 25.

What does Section 25 provide?

Section 25 deals specifically with service of a notice issued under Section 24(1). It permits service by post or in the same manner as a summons issued by a Court under the Code of Civil Procedure, 1908. It also specifies the appropriate addressee where the notice concerns an individual, firm, Hindu undivided family, company, association, body of individuals, or another non-individual person.

Section 25: Manner of service of notice

(1) A notice under sub-section (1) of section 24 may be served on the person named therein either by post or as if it were a summons issued by a Court under the Code of Civil Procedure, 1908.

(2) Any notice referred to in sub-section (1) may be addressed-

  1. in case of an individual, to such individual;
  2. in the case of a firm, to the managing partner or the manager of the firm;
  3. in the case of a Hindu undivided family, to Karta or any member of such family;
  4. in the case of a company, to the principal officer thereof;
  5. in the case of any other association or body of individuals, to the principal officer or any member thereof;
  6. in the case of any other person (not being an individual), to the person who manages or controls his affairs.

Meaning and practical scope of Section 25

The provision is procedural. It does not itself determine whether a property is benami. Instead, it governs how the notice contemplated by Section 24(1) is to reach the person named in it. Section 24 concerns notice and attachment of property alleged to be involved in a benami transaction, while Section 25 supplies the statutory rules for service and addressing of that notice.

Service by post or as a civil court summons

Under Section 25(1), the statute expressly recognises two routes: service by post, or service as if the notice were a summons issued by a Court under the Code of Civil Procedure, 1908. The reference to the Code links the service mechanism to the procedural framework applicable to service of civil court summons.

Who may receive the notice?

Section 25(2) avoids uncertainty about the appropriate addressee for organisations and other non-individual persons. For example, a firm may be addressed through its managing partner or manager, a Hindu undivided family through its Karta or any member, and a company through its principal officer. The exact statutory categories are reproduced above.

Relationship with Sections 24 and 26

Section 25 should be read with the surrounding provisions in Chapter IV. Section 24 deals with notice and attachment of property involved in a benami transaction. Section 26 governs adjudication of benami property after a reference is received by the Adjudicating Authority.

Official legal source

For the consolidated and updated statutory text, readers should verify the provision from the official India Code version of the Prohibition of Benami Property Transactions Act, 1988. Amendments and commencement provisions should also be checked where they are relevant to a particular proceeding.

This page is a general legal information resource. The application of notice and service requirements can depend on the facts, the applicable procedural rules, and judicial interpretation.