Prohibition of Benami Property Transactions Act, 1988

Section 64: Protection of Action Taken in Good Faith

Section 64 of the Prohibition of Benami Property Transactions Act, 1988 protects specified public authorities from prosecution, suits and other proceedings for acts done, or intended to be done, in good faith under the Act.

Current statutory context: The law was originally enacted as the Benami Transactions (Prohibition) Act, 1988. It was substantially amended by the Benami Transactions (Prohibition) Amendment Act, 2016 and is now titled the Prohibition of Benami Property Transactions Act, 1988.

Text of Section 64

64. Protection of action taken in good faith. No prosecution, suit or other proceeding shall lie against the Government or any officer of the Government or the Appellate Tribunal or the Adjudicating Authority established under this Act, for anything done or intended to be done in good faith under this Act.

Meaning and Scope of Section 64

Section 64 is a statutory protection for specified authorities and officers acting under the Benami law. Its purpose is to prevent legal proceedings merely because an authority has exercised, or intended to exercise, a power under the Act, provided the action is protected by the requirement of good faith.

Who is protected?

What proceedings are covered?

The section refers broadly to a prosecution, suit or other proceeding. The protection is therefore drafted to cover different forms of legal action against the authorities named in the provision.

What does "good faith" mean here?

The protection is tied to conduct done or intended to be done in good faith under the Act. In practical terms, the provision is not a blanket immunity for every act of an authority. The conduct must have a genuine connection with powers or functions under the Act and satisfy the statutory requirement of good faith.

Why Section 64 Matters

The Benami law gives administrative and adjudicatory authorities significant powers relating to attachment, adjudication, confiscation and appeals. Section 64 seeks to allow those functions to be performed without exposing the Government and the named authorities to personal or institutional proceedings merely because an affected person disagrees with an action taken in good faith under the Act.

At the same time, Section 64 should be read according to its exact wording. It protects actions done or intended to be done in good faith under the Act; it does not expressly create immunity for conduct outside the Act or conduct that does not satisfy the statutory condition of good faith.

Official Source

For the current consolidated statutory text, refer to the official India Code version of the Prohibition of Benami Property Transactions Act, 1988 on India Code.