One Alexander Macdonald who lived in Calcutta had a mistress known as Bunnoo Bibee. He had two children by her. One of them was the respondent, Macqueen. The property in dispute was purchased in the name of Bunnoo Bibee. The sale deed stood in her name. She received the rent from the tenants.
In June 1843, she sold the property to Ramdhone Koondoo (father of Ram Coomar) for Rs. 945. Subsequently, the purchaser created important buildings upon the land and increased the value to such extent that the property was valued to Rs. 40000. After the death of Bunoo Bibee a suit was brought against Ram Dhone by Macqueen, claming under the will of Alexander Macdonald. The claim put forward in the suit was that the purchase, although in the name of Bunoo Bibee was a purchase benami by Macdonald that he was the real purchaser, but had used her name in making the purchase. The defense put forward by the defendant was that their father (Ram Dhone) purchased the estate of Bunnoo Bibee without any notice of the benami title.
The Calcutta High Court decided in favour of the respondent and decreed the suit. On appeal to the Privy Council, the judgment of the Calcutta High Court was reversed and suit
dismissed.
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