Company ABC Ltd had entered into a transaction to purchase a property in the year 1980 in the name of Mr. X , as nominee of the company, but the consideration was paid by ABC Ltd and the company shows this property as their fixed asset.
Mr. X died in the year 1985. Now the company wants to appoint Mr. Y as nominee in place of Mr. X, who will hold the property for the company till it is sold.
1. Kindly suggest whether section 49 of the companies act is attracted or not?
2. Will this be treated as a benami transaction if yes, what is the legal status as it was entered into before commencement of benami transactions act,1988?
3. What will be the legal consequences on part of Mr. Y , as new nominee and for the Company, ABC Ltd, in case of appointment of new nominee?
Your views will be highly solicited
