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Section 67 of the Benami Act: Act to Have Overriding Effect

Section 67 of the Prohibition of Benami Property Transactions Act, 1988 gives the Act an overriding effect where a provision of another law is inconsistent with it. The provision was inserted as part of the substantial amendments made by the Benami Transactions (Prohibition) Amendment Act, 2016, which also renamed and extensively amended the principal Act.

In simple terms: if another law contains a rule that directly conflicts with a provision of the Benami Act, Section 67 directs that the Benami Act will prevail to the extent of that inconsistency.

Text of Section 67 - Act to Have Overriding Effect

Section 67. The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force.

Meaning of Section 67

Section 67 is a statutory non-obstante clause. The words "notwithstanding anything inconsistent therewith" are used to give the Benami Act priority over another law when both provisions cannot operate together in a particular situation.

The section does not automatically displace every other law. Its operation is limited to an actual inconsistency. Where the Benami Act and another law can reasonably operate together, both may continue to apply according to their respective fields.

Legal Effect of the Overriding Clause

  • Priority in case of conflict: a conflicting provision in another law yields to the Benami Act to the extent of the inconsistency.
  • No blanket repeal: Section 67 does not by itself repeal or invalidate other statutes.
  • Conflict must be identified: the competing provisions must first be examined to determine whether they are genuinely inconsistent.
  • Purpose-based interpretation: the clause supports effective enforcement of the statutory framework governing benami property and benami transactions.

Current Name of the Law

The legislation is currently titled the Prohibition of Benami Property Transactions Act, 1988. The Benami Transactions (Prohibition) Amendment Act, 2016 substantially amended the 1988 enactment and changed its short title. Therefore, Section 67 is best referred to as Section 67 of the Prohibition of Benami Property Transactions Act, 1988, while references to the 2016 Amendment Act remain relevant for legislative history.

Practical note: the application of an overriding clause depends on the facts, the specific competing statute and the nature of the inconsistency. The provision should be read with the rest of the Act and any binding judicial interpretation applicable to the dispute.

Related Benami Act Provisions

For continuity, see the preceding provision on Section 66 - Proceedings against legal representative and the next provision on Section 68 - Power to make rules.