SC Holds that Courts Must Pierce ‘Clever Drafting’ and Summarily Reject Plaints Seeking to Enforce Illegal Arrangements Such as Benami Transactions

Jul 27, 2026

SC Holds that Courts Must Pierce ‘Clever Drafting’ and Summarily Reject Plaints Seeking to Enforce Illegal Arrangements Such as Benami Transactions

The SC in Manjula v. D.A. Srinivas^[1] inter alia, held that Courts considering an application under Order VII Rule 11 of the CPC must undertake a meaningful and substantive reading of the plaint and curtail frivolous suits which are barred by law by piercing the veil of clever drafting. The SC held that, although the plaint was filed seeking declaratory reliefs on the basis of an alleged will, a holistic reading of the plaint revealed that the concerned property was benami in nature and the suit sought judicial recognition of benami transaction which is prohibited by law.

[1] Manjula v. D.A. Srinivas, 2026 SCC OnLine SC 831.

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