Ramcoomar Koondoo v John McQueen

Facts

• Real owner placed property in benamidar's name
• Benamidar sold to a bona fide purchaser for value
• Real owner sought to recover property from the purchaser

Issue

1. Whether a bona fide purchaser from a benami holder acquires good title against the real owner.

Held

• The real owner was estopped. Having placed property in another's name and thereby enabling the benamidar to appear as owner, the real owner cannot defeat an innocent purchaser who relied on the apparent ownership.

Ratio Decidendi

Where the real owner consents to ostensible ownership and a third party deals with the ostensible owner in good faith and for value, equity protects the innocent buyer. The real owner created the risk and must bear the consequence.