Composites of carbon a nanotube with polymers are a developing and interesting area of research. The dispersion of the nanotube in polymer matrices is an important factor while making its nanocomposites. Even though in-situ polymerization approach offers a better approach for synthesizing homogeneous polymer nanotube composites, the dispersion of the nanotubes in the monomer solution is a problem. In this article we report a new chemical method for dispersing nanotubes in monomer and the preparation of uniform tubular composite of polyaniline (PANI) and multiwalled carbon nanotube (MWNT). For this the oxidized multiwalled nanotube (o-MWNT) was functionalized with p-phenylenediamine, which gave phenylamine functional groups on the surface. This functionalization helped to disperse the nanotubes in acidic solution. The in-situ polymerization of aniline in the presence of these well dispersed nanotubes gave a new tubular composite of carbon nanotube having an ordered uniform encapsulation of doped polyaniline. The phenylamine functional groups on the surface were grown into polyaniline chain so that the composite contains polyaniline functionalized CNT and they were no more an "impurity" in the final nanocomposite. The microscopic and structural properties of this composite were compared with that of a composite prepared under identical condition using o-MWNT.