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Fakruddin v. Iqbal Ahmad

Allahabad High Court
Apr 15, 1957
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Factual and Procedural Background

This matter is an application under Section 115 of the Civil Procedure Code (Civil P.C.) seeking revision of an order of the Civil Judge, Agra. The Civil Judge had permitted the opposite parties (plaintiffs) to sue as paupers. The underlying suit by the opposite parties is for declaration of title, possession of immoveable property and damages; it was valued by the plaintiffs at Rs. 6,000 and a court-fee of Rs. 835 was payable on the plaint. After enquiry the Civil Judge found that the opposite parties did not possess sufficient means to pay the court-fee and allowed them to sue as paupers. The applicants (represented by Sri Gopal Behari) challenged that order by the revision application now dismissed by the court in the present opinion.

Legal Issues Presented

  1. Whether an ad valorem court-fee payable under the Court Fees Act qualifies as a "fee prescribed by law" within the explanation to Rule 1 of Order 33 (i.e., whether the first limb of the explanation applies to ad valorem fees as well as fixed fees).
  2. Whether, when determining if a plaintiff has "sufficient means" to pay the court-fee (first limb), the subject-matter of the suit must be excluded from consideration, particularly where the plaintiff claims property of substantial value.
  3. Whether the opposite parties failed to prove that they lacked sufficient means to pay the fee on the plaint, given that they claimed title to property valued at Rs. 6,000.

Arguments of the Parties

Applicant's (Sri Gopal Behari) Arguments

  • The Civil Judge erred in permitting the plaintiffs to sue as paupers merely on finding they were not possessed of sufficient means; the judge should have found they were not entitled to property worth Rs. 100 (i.e., the second limb) before allowing pauper status.
  • The phrase "fee prescribed by law" in the explanation should be interpreted to mean a fixed fee (one not varying with valuation). Where an ad valorem (valuation‑dependent) fee is payable, the applicant argued that it falls under "no such fee is prescribed" and hence the second limb should apply.
  • When plaintiffs claim property valued at Rs. 6,000, they cannot then contend they lack means to pay Rs. 835; in the applicant's view, the subject-matter should be excluded only in the second limb and, in the first limb, the subject-matter in dispute should not be ignored.

Opposite Parties' Position (as reflected in the opinion)

  • The opposite parties were declared paupers by the Civil Judge after enquiry, the court having found they were not possessed of sufficient means to pay the court-fee on the plaint.
  • Although they claimed the property (value shown as Rs. 6,000), they were not in possession of the subject-matter of the suit and therefore could not be compelled to convert that claim into money to pay fees; hence they lacked "sufficient means" within the meaning of the Rule.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mt. Kanizum Hani v. Syed Mohammad, AIR 1933 All 556 (A) Showed a case where ad valorem court-fee was payable and was treated as governed by the first limb of the explanation (i.e., fee prescribed by law). Used to support the view that ad valorem fees are "fees prescribed by law" and therefore fall under the first limb of the explanation.
Rajdeo Singh v. Jagdeo Singh, AIR 1934 All 323 (B) Case where ad valorem court-fee was payable and held to be a fee prescribed for the plaint. Relied upon to show that ad valorem fees count as prescribed fees for the purpose of pauper enquiry.
Mithai Lal v. Jagan, 1937 All LJ 1171 : AIR 1937 All 740 (C) Held that where plaintiff suing for partition had a valuable share (subject-matter) in possession, the value of that share could be taken into account in assessing means to pay fee. Quoted and followed for the proposition that the subject-matter may sometimes be considered in the first-limb enquiry, especially when the plaintiff is in possession and the property constitutes real means.
Balagauri v. Moti Lal, ILR 47 Bom 523 : AIR 1923 Bom 247 (D) Earlier authority from which Mithai Lal dissented. Not followed; Mithai Lal declined to accept Balagauri's position on exclusion of subject-matter in all cases.
Provash Chandra Lahiri v. Municipal Commissioner of Howrah, ILR 57 Cal 980 : (AIR 1930 Cal ... ) (E) Discussed in relation to whether the subject-matter of dispute can be taken into account in considering means to pay fee. Cited in the context of agreeing that subject-matter cannot in all circumstances be excluded from consideration for the first-limb enquiry.
Vedanta Desikacharyulu v. Perinde Vamma, ILR 3 Mad 249 (P) Held that law does not intend to compel persons seeking relief to mortgage their claims; a right to sue is not intended to be treated as means for fee payment. Applied to support the proposition that a mere right to sue for property not in the plaintiff's possession should not be treated as a means to pay court-fee.
Kapil Deo Singh v. Ram Rekha Singh, ILR 33 All 237 (G) Distinguished Vedanta Desikacharyulu; where plaintiff owned equity of redemption (actual property interest), that could count as means. Used to illustrate that possession or an actual proprietary interest that can be converted into money may be considered in the means enquiry.
Mt. Chanda Begum v. Maqsood Husain, AIR 1942 All 319 (H) Held that a Muslim woman's claim for dower debt was not a "means" within the meaning of the explanation. Relied upon to support the proposition that certain kinds of claims or rights (not in possession) do not constitute means to pay fees.
Ponnambalam Pillai v. Paniaksharma Pillai, AIR 1949 Mad 544 (I) Held that property not in the plaintiff's possession was to be left out of consideration in the means enquiry. Applied to support the conclusion that property not in possession cannot be treated as means to pay court-fee.

Court's Reasoning and Analysis

The court proceeded in a structured manner to resolve the contentions raised by the applicant:

  1. Interpretation of "fee prescribed by law" and ad valorem fees:

    The court rejected the applicant's strained distinction between fixed fees and ad valorem fees. It reasoned that if law (notably the Court Fees Act and its Schedules) prescribes the fee payable on a plaint then that is a fee "prescribed by law" regardless of how it is calculated. The Court observed that Schedule I of the Act indicates ad valorem fees and that the explanatory language added to Section 6 uses the word "prescribed" for all scheduled fees. Therefore an ad valorem fee payable on a plaint is as much a fee prescribed by law as a fixed fee. The court concluded that whether a plaintiff is a pauper depends on the fee payable under the law, not on the method of calculation (fixed vs ad valorem).

  2. Purpose of declaring a plaintiff a pauper and the meaning of "where no such fee is prescribed":

    The court explained that the purpose of a pauper declaration is broader than merely exempting payment of fee on the plaint. Rule 8 of Order 33 exempts a pauper plaintiff from payment of various fees in related proceedings (not only the plaint). Section 19 of the Court Fees Act exempts certain plaints from payment of any fee. Thus the phrase "where no such fee is prescribed" cannot be restricted to mean only those situations where a fee exists but is not fixed (ad valorem). The court held the applicant's reading to be incorrect.

  3. Whether the subject-matter of the suit must be excluded when assessing "sufficient means":

    The court distinguished the two limbs of the explanation: (a) the first limb enquires into the plaintiff's "means" to pay the fee and (b) the second limb enquires into whether the plaintiff is entitled to property worth Rs. 100 (excluding necessary wearing apparel and the subject-matter of the suit). The legislature expressly excluded the subject-matter of the suit in the second limb but not in the first. Therefore it is not correct to say the subject-matter must always be excluded in the first-limb enquiry. The court accepted authorities (for example, Rajdeo Singh and Mithai Lal) that the subject-matter can be considered in the first-limb enquiry when the plaintiff is in possession of the subject-matter or a part of it because that possession forms part of the plaintiff's means.

    However, the court emphasized the distinction that a mere right to sue or a claim to property not in the plaintiff's possession does not necessarily constitute a means to pay the court-fee. It reasoned that "means" is not identical to "property" in the abstract: the enquiry focuses on the plaintiff's ability to raise the necessary cash, not merely on title or theoretical value. The court cited authorities to the effect that the law does not intend to compel persons seeking relief to mortgage their claims, and that claims not in possession are not properly considered means for paying fees.

  4. Application of principles to the facts:

    On the factual matrix the opposite parties were not in possession of the subject-matter of the suit; they only had a right to sue for possession. The court concluded that such a right was not a "means" to enable them to pay the court-fee because they could not be compelled to mortgage that claim to raise money. Since the opposite parties had no other property, the Civil Judge's finding that they were not possessed of sufficient means was correct.

Holding and Implications

Holding:

APPLICATION DISMISSED.

Implications:

  • The revision application under Section 115, Civil P.C. was dismissed and the Civil Judge, Agra's order permitting the opposite parties to sue as paupers is upheld.
  • The court reaffirmed that ad valorem court-fees prescribed by the Court Fees Act are "fees prescribed by law" for purposes of the explanation to Rule 1 of Order 33; therefore ad valorem fees fall within the first limb's ambit.
  • The court clarified the analytical distinction between the two limbs of the explanation: while the subject-matter of the suit is expressly excluded from the second-limb enquiry (entitlement to property worth Rs. 100), it need not always be excluded from the first-limb enquiry (sufficient means). Whether the subject-matter counts in the first-limb enquiry depends on whether it constitutes real, convertible means (e.g., possession or an actual proprietary interest) and not merely a disputed right.
  • No broader or novel legal principle was announced beyond the application and reaffirmation of existing authorities and statutory interpretation; the immediate consequence is that the plaintiffs remain entitled to sue as paupers in that suit and the applicants' challenge fails.
Show all summary ...

1. This is an application under Section 115, Civil P.C., for revision of an order passed by the Civil Judge, Agra, permitting the opposite parties plaintiffs to sue as paupers. The suit instituted by the opposite parties against the applicants is one for declaration of title, possession of immoveable property and damages and is valued at Rs. 6,000 on which court-fee of Rs. 835 is payable. The learned Civil Judge after an enquiry found that the opposite parties were not possessed of sufficient means to enable them to pay the court-fee.

2. The first contention of Sri Gopal Behari was that the learned Civil Judge was in error in permitting the opposite parties to sue as paupers merely on the finding that they were not possessed of sufficient means and that he should not have permitted them unless he found that they were not entitled to property worth Rs. 100. This contention is based upon the explanation

"A person is a 'pauper' when he is not possessed of sufficient means to enable him to pay the fee prescribed by law for the plaint in such suit, or where no such fee is prescribed, when he is not entitled to property worth one hundred rupees other than his necessary wearing apparel and the subject-matter o the suit."
(Rule 1, of Order 33).

If there is a fee prescribed by law for the plaint the plaintiff is a pauper if he is not possessed of sufficient means to enable him to pay it; whereas if no such fee is prescribed, he is a pauper if he is not entitled to property worth Rs. 100 excluding his necessary wearing apparel and the subject-matter of the suit. It was argued that the fee prescribed by law means fixed fee regardless of valuation and that when ad valorem fee is payable it is a case in which "no such fee is prescribed." In other words, distinction was sought to be made between fixed fee and ad valorem fee and it was argued that the first limb of the explanation applies in the former case and the second limb in the latter case.

We are quite unable to agree with the applicants' contention. There is no justification whatsoever for putting such a strained interpretation on the words "prescribed by law." If law lays down the fee payable on a plaint, it is a fee prescribed by law regardless of how it is to be calculated. Ad valorem fee payable on a plaint is as much a fee prescribed as fixed fee; both are prescribed by law, neither less than the other. The main law that prescribes court-fees is the Court Fees Act and any fee made payable under it is undoubtedly a fee prescribed by law.

The fees indicated by either of the Schedules annexed to the Act are the fees by which the corresponding documents are chargeable; see Section 6(1). The explanation added by the State of U.P. to Section 6 uses the word "prescribed" for all fees indicated by either of the Schedules. Schedule I indicates ad valorem fee, and it follows that ad valorem fees also are fees prescribed by law. Fixed fee is fee payable regardless of valuation while ad valorem fee is fee that varies with the valuation. Ad valorem fee payable on a particular plaint is as much fixed as fixed fee and no rational basis exists for distinguishing between the two for the purpose of deciding whether the plaintiff is a pauper.

Whether he is a pauper or not will depend upon the fee payable on the plaint, but surely not upon how the fee is calculated or whether it is one for all valuations or varies with the valuation.

3. The principal reason for the argument was that the words "where no such fee is prescribed" could not mean "where no such fee is chargeable or payable," because if no fee was chargeable or payable, there would be no object in declaring the plaintiff to be a pauper. This assumes that a plaintiff is declared to be a pauper only for the purpose of exempting him from payment of fee on the plaint; this assumption is erroneous. Under Rule 8 of the Order a pauper plaintiff is exempted from payment of fee in respect of any petition, appointment of a pleader or other proceeding connected with the suit.

The Legislature might have thought it proper to exempt plaintiffs not entitled to property worth more than Rs. 100 from payment of these fees and, therefore, they would have to be declared as paupers even though they had not to pay any fee on the plaints. Section 19 of the Court-fees Act exempts plaints in certain suits from payment of any fee; so it cannot be argued that the words "where no such fee is prescribed" mean not that no fee is payable by law but that fee is payable by law but has not been prescribed, that is, it is not a fixed fee but left to vary from plaint to plaint.

4. Sri Gopal Behari does not support his contention by any authority. On the other hand, cases in which ad valorem court-fee would have been payable on the plaint have been treated as governed by the first limb of the explanation. In Mt. Kanizum Hani v. Syed Mohammad, AIR 1933 All 556 (A), the suit was for setting aside an alienation made by a mutawalli; ad valorem court-fee was payable and yet the case was dealt with as if governed by the first limb. The suit in Rajdeo Singh v. Jagdeo Singh, AIR 1934 All 323 (B), was one for setting aside a deed of gift and possession; ad valorem court-fee was payable and it was held it was a fee prescribed for the plaint.

5. The next contention is that the opposite parties have failed to prove that they have not sufficient means, to pay the fee payable on the plaint. The argument was that when they lay claim to property valued at Rs. 6,000 by themselves, they cannot plead that they have not the means to pay Rs. 835. Sri Gopal Behari contended that in a case governed by the first limb of the explanation the subject-matter in dispute is not to be excluded.

Of course when the Court has to consider whether a plaintiff is not entitled to property worth Rs. 100, the subject-matter of the suit is to be ignored; but it does not follow that it is not to be ignored in the other case in which the Court has to consider whether the plaintiff has sufficient means to enable him to pay the fee. In Rajdeo Singh's case (B) (supra), it was observed by Bennett J., that in considering the means of a plaintiff the Court can take into consideration the plaintiff's possession of a part of the subject-matter of the suit. We respectfully agree with this view.

If a plaintiff is in possession of the subject-matter of a suit or a part of it, it must certainly be taken into consideration in ascertaining his means because this property is a part of his 'means' but we cannot go further and insist upon taking into consideration the subject-matter of the suit even when the plaintiff is not in possession of it, nor was this intended to be laid down by Bennett J. In Mithai Lal v. Jagan, 1937 All LJ 1171 : (AIR 1937 All 740) (C), the plaintiff suing for partition of his share in the joint family property was held to be possessed of sufficient means to pay the fee, because the value of his share was considerable. Sulaiman, C. J. and Hamilton, J., refused to ignore the subject-matter of the suit when inquiring into the plaintiff's means, They dissented from Balagauri v. Moti Lal, ILR 47 Bom 523 : (AIR 1923 Bom 247) (D), and observed at page 1172 (of All LJ): (at page 741 of AIR):

"The legislature has advisedly excluded the subject-matter of the suit in the second case, but has refrained from excluding it in the former case. It is, therefore, not possible to hold that in cases coming in the first category the subject-matter of the suit must always and of a necessity be excluded from consideration. Whether it should or should not be excluded is a matter for the consideration of the Court which has to decide the question whether the plaintiff is or is not possessed of sufficient means to enable him to pay the fee."

6. At page 1173 (of All LJ) : (at p. 741 of AIR) they observed :

"If the learned Judges of the Calcutta High Court meant to lay down ''in Provash Chandra Lahiri v. Muncipal Commissioner of Howrah, ILR 57 Cal 980 : (AIR 4930 Cal 147 (2) ) (E)," that the subject-matter of the dispute cannot always be taken into account in considering whether the plaintiff is possessed of sufficient means to enable him to pay the fee or not then we would have no quarrel with that view; but we are unable to agree with the view that the subject-matter in dispute can in no circumstances be taken into consideration even if the case falls under the first paragraph of the explanation."

We respectfully agree with the learned judges. Neither is it correct to say that the subject-matter of the property must always be excluded in an inquiry into the plaintiff's means, nor is it correct to say that it can even never be taken into consideration. We may here mention that the Legislature used the words "other than ........ the subject-matter of the suit" in the second limb and not in both the limbs because of the difference in the subject-matters of inquiry of the two limbs. The subject-matter of inquiry in the first limb is the means and that in the second limb is the title to property.

Moreover, the word "means" is by no means identical with property and it would not have been quite appropriate to exclude the subject-matter of the suit from the scope of the means. Court-fee is payable in cash but it is not essential for a plaintiff to be in possession of so much cash in order to be able to pay the fee. If he has sufficient means, he can raise the necessary cash for payment of the fee, in which case he Should not be declared to be a pauper. We think that the following statement by Section C. Sarkar in his book on Civil Procedure third Edition page 982 lays down the correct law;

"When applicant's right to sue as a pauper is challenged the enquiry is as to whether he has 'sufficient means' to pay the court-fee. It does not mean possession of ready money. If he is in possession of property enabling him to raise cash easily for payment of court-fee, he has sufficient means: but mere possession of property is not enough. The stress is not on possession of property but possession of 'sufficient means'. A person may be in possession of, or entitled to property and yet not be possessed of sufficient means to pay the court-fee."

The opposite parties are not in possession of the subject-matter of the suit and the learned Civil Judge rightly refused to take it into consideration when inquiring into their means. They have only a right to sue for possession, but this right is not their means, because they cannot be compelled to raise money by mortgaging it. In Vedanta Desikacharyulu v. Perinde Vamma, ILR 3 Mad 249 (P), it was stated that it is not the intention of the law to compel persons seeking relief to mortgage their claims.

This case was distinguished, though not dissented from by a Bench of this Court in Kapil Deo Singh v. Ram Rekha Singh, ILR 33 All 237 (G). There the plaintiff who sued for redemption of a mortgage, was held to be not a pauper, because he owned the equity of redemption on the security of which he could raise money. He was left with some property viz., the equity of redemption, he was not possessed of only a right to sue. In Mt. Chanda Begum v. Maqsood Husain, AIR 1942 All 319 (H), a Muslim woman's claim for dower debt against her husband was held to be not means within the meaning of the explanation.

In Ponnambalam Pillai v. Paniaksharma Pillai, AIR 1949 Mad 544 (I), property which was not in the plaintiff's possession was left out of consideration. Whether a plaintiff has means to enable him to pay the fee does not depend upon his power in the abstract to raise money; it is not a question of mere credit of the plaintiff. He must have means to enable him to raise money in an open market; if he has no property at all it cannot be said that merely because he claims a title fro some property, he has means to raise money. The property in suit not being in possession of the opposite parties could not be taken into consideration in an inquiry into their means. They have no other property and they were rightly declared to be paupers.

7. The application is dismissed.