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Pankajaksha Kurup v. Fathima And Others

Kerala High Court
Mar 13, 1998
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Full Bench — Civil Revision Petition (summary of the provided opinion)

Factual and Procedural Background

The revision petitioner is the plaintiff in O.S. No. 711/1993 on the file of the Sub-Court, Ernakulam. The plaint alleges that the decree in O.S. No. 183 of 1984 (in which the present petitioner was defendant) was obtained when the petitioner was a lunatic and that no guardian was appointed for him in those proceedings. The plaintiff's stated reliefs were: (i) a declaration that the decree in O.S. 183 of 1984 is null and void; and (ii) a consequential injunction restraining defendants 2 to 5 from executing that decree.

The plaintiff valued the declaratory relief at Rs. 30,000 under Section 25(d)(ii) of the Kerala Court-fees and Suits Valuation Act ("the Act") and paid a court-fee of Rs. 1,050. The defendants challenged the valuation and contended that the suit was in substance for cancellation (setting aside) of a decree and therefore court-fee should have been paid under Section 40 of the Act calculated on the value of the subject-matter (the property), which the trial Court fixed at Rs. 5,00,000. The trial Court directed the plaintiff to pay the balance fee on Rs. 4,70,000. The petitioner filed this revision petition against that order.

The Single Judge considered the matter and referred it to the Division Bench on the ground that an earlier Division Bench decision (P.K. Vasudeva Rao v. K.C. Hari Menon, 1981 Ker LT 763; AIR 1982 Ker 35) had its correctness questioned. The Division Bench in turn referred the matter to a Full Bench. The Full Bench heard counsel for the petitioner, counsel for the respondents and the learned Government Pleader and delivered the opinion summarized here.

Legal Issues Presented

  1. Whether the valuation of the suit and the court-fee paid by the plaintiff are correct (express issue raised in the pleadings).
  2. Whether the relief claimed (a declaration that a decree is null and void and consequential injunction) amounts to a suit for cancellation/setting aside of a decree attracting valuation and court-fee under Section 40 of the Act, or whether the suit must be valued and court-fee paid under Section 25 of the Act.
  3. Whether the correctness of the Division Bench decision in P.K. Vasudeva Rao v. K.C. Hari Menon (1981 Ker LT 763: AIR 1982 Ker 35) arises for decision in this case.

Arguments of the Parties

Petitioner's Arguments

  • The petitioner treated the relief as a declaratory suit and valued it under Section 25(d)(ii) of the Act at Rs. 30,000, paying court-fee accordingly.
  • The petitioner (through counsel) challenged the applicability/correctness of the earlier Division Bench decision (P.K. Vasudeva Rao … v. K.C. Hari Menon) and invited the court to revisit that decision; this challenge led to referral up to the Full Bench.
  • The petitioner contended (implicitly through the pleadings and chosen valuation) that the prayer for declaration that a decree is null and void rests on the pleaded fact that the decree was obtained when the plaintiff was a lunatic and without appointment of a guardian.

Respondents' Arguments

  • The respondents contended that the suit was not properly valued and that the court-fee paid was incorrect because the relief was in substance for setting aside (cancellation of) a decree, which should attract valuation under Section 40 of the Act on the value of the subject-matter (the property) — which the trial Court fixed at Rs. 5,00,000.
  • At a later stage (before the Full Bench), respondents' counsel also submitted that, if not Section 40, the matter might require valuation under Section 25(b) of the Act (where a declaration and consequential injunction relates to immovable property: fee computed on one-half of market value) rather than Section 25(d)(ii).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
P.K. Vasudeva Rao v. K.C. Hari Menon, 1981 Ker LT 763 : AIR 1982 Ker 35 Interpreted Section 40 of the Kerala Court-fees and Suits Valuation Act regarding valuation of suits to set aside decrees (held that in suits to set aside decrees with respect to immovable properties, court-fee has to be paid on the money value of the property). The Full Bench observed that the correctness of this Division Bench decision was questioned but held that its correctness did not actually arise in the present case because the present suit is to be valued under Section 25 of the Act. The Court therefore did not decide on the correctness of this precedent.
Shamsher Singh v. Rajinder Prashad, AIR 1973 SC 2384 Authority for treating a declaratory suit as in substance a suit to set aside a decree (the Court held that the plaintiffs there were really asking for setting aside the decree, and consequential reliefs amounted to that). The trial Court relied on this Supreme Court decision to hold that the present plaint amounted to cancellation/setting aside of a decree and directed fee under Section 40. The Full Bench distinguished the facts of Shamsher Singh and explained that Shamsher Singh involved different factual foundations (claims that would make the decree binding on plaintiffs absent setting aside), so that decision did not control the present case.
Ram Chandra v. Man Singh, AIR 1968 SC 954 Proposition that a decree passed against a minor (or by parity, a lunatic without a guardian) without appointment of a guardian is a nullity and not merely voidable; such a decree is to be treated as without jurisdiction and void. The Full Bench relied on this Supreme Court authority to hold that, if the plaint's averments that the plaintiff was a lunatic and the decree is therefore void are accepted, then the decree is a nullity and need not be "set aside". On that basis the Full Bench concluded that the present prayer for a declaration cannot be treated as a cloak for seeking to set aside a decree under Section 40.

Court's Reasoning and Analysis

The Full Bench took the following analytical path, grounded in the pleadings and cited authorities:

  1. Scope of the referral: Although the correctness of the Division Bench decision in P.K. Vasudeva Rao was questioned, the Full Bench found that the correctness of that decision did not need to be decided because the present case could be resolved by determining whether the suit falls under Section 40 or Section 25 of the Act.
  2. Examination of the plaint and applicable provisions: The trial Court had interpreted the plaint as amounting to cancellation of a decree and therefore directed valuation under Section 40; it relied on Shamsher Singh (AIR 1973 SC 2384) for the proposition that a declaratory suit may amount to setting aside a decree depending on substance.
  3. Distinguishing precedent on facts: The Full Bench compared Shamsher Singh with the present case and found the facts materially different. In Shamsher Singh the plaintiffs sought a declaration that the decree was not binding on them because of the nature of family property and the consequences of execution; thus the relief could be seen as seeking to set aside the decree. In the present case, however, the plaint specifically pleads that the decree was passed when the plaintiff was a lunatic and without appointment of a guardian.
  4. Application of Ram Chandra: The Bench relied on Ram Chandra v. Man Singh (AIR 1968 SC 954), which states that a decree against a minor (and by analogy a lunatic without a guardian, per R.15 of Order XXXII) is a nullity and void. The Bench reasoned that if the plaint's averments are accepted, the decree is void ab initio and does not require the procedural device of "setting aside" — it is not a valid decree that needs to be vacated but is void.
  5. Conclusion on valuation provision: Given the character of the relief (a declaration that the decree is null and void because of lunacy and lack of guardian) the Full Bench held that Section 40 (valuation for cancellation of a decree) is not applicable and that valuation and court-fee should be fixed under Section 25 of the Act.
  6. Residual question left to trial Court: The Full Bench recognized an outstanding factual/legal question as to whether Section 25(b) (declarations with reference to immovable property: fee on one-half of market value) or Section 25(d)(ii) (subject-matter not capable of valuation: fee on the amount at which relief is valued or Rs.1,000 — whichever is higher) applies. The Bench directed the trial Court to decide this question and to consider the sufficiency of the valuation and fee already paid.
  7. Procedural directions: The Full Bench set aside the impugned order of the trial Court (dated 14-7-1995), remitted the valuation issue to the trial Court for determination between S.25(b) and S.25(d)(ii), fixed a date for appearance, and directed expeditious disposal of the suit within six months from 2-4-1998.

Holding and Implications

Core Holding: The Civil Revision Petition is allowed and the impugned order directing valuation and payment of court-fee under Section 40 of the Kerala Court-fees and Suits Valuation Act is set aside; valuation and court-fee are to be fixed under Section 25 of the Act.

Direct consequences for the parties:

  • The trial Court's order dated 14-7-1995 (directing payment of court-fee under Section 40 on Rs. 5,00,000 and payment of balance) is set aside.
  • The matter of whether the court-fee must be paid under Section 25(b) (declarations and consequential injunctions relating to immovable property) or under Section 25(d)(ii) (where subject-matter is not capable of valuation) is remitted to the trial Court for determination. The trial Court is to consider the sufficiency of the valuation and the fee already paid by the plaintiff.
  • Administrative directions: Parties to appear in the trial Court on 2-4-1998, and the trial Court was directed to expedite trial and attempt to dispose of the suit within six months from that date.
  • The Civil Revision Petition is expressly allowed in the terms stated; the connected miscellaneous petition (C.M.P. 2631/1995) is dismissed and the order on that application recorded as "Order accordingly."

Broader legal implications: The Full Bench did not decide on the correctness of the Division Bench decision in P.K. Vasudeva Rao v. K.C. Hari Menon and therefore did not lay down or reverse any new precedent on that point. The opinion's ruling is limited to the application of the Act's valuation provisions to the pleaded facts before the Court and to remitting the specific valuation question to the trial Court.

Disposition: The Civil Revision Petition is allowed; impugned trial Court order set aside; valuation to be fixed under Section 25 (trial Court to determine whether S.25(b) or S.25(d)(ii) applies). Order on the connected C.M.P. dismissed.

Show all summary ...

Sankarasubban, J.:— This Civil Revision Petition has been referred before the Full Bench since the correctness of the Division Bench decision in P.K Vasudeva Rao… v. K.C Hari Menon, 1981 Ker LT 763: (AIR 1982 Ker 35), was doubted before the Division Bench.

2. The plaintiff in O.S 711/1993 on the file of the Sub-Court, Ernakulam is the revision petitioner. The plaintiff is alleged to be a lunatic and is represented by his guardian, his wife. The allegations in the plaint are that the decree in O.S 183 of 1984 of the Sub-Court, Ernakulam was obtained against the plaintiff (who was the defendant therein) when he was a lunatic and the proceedings in that suit continued against the plaintiff without appointing a guardian. Hence, according to the plaintiff, the decree is a nullity. The reliefs prayed for in the plaint are: (i) a declaration that the decree in O.S 183 of 1984 is null and void; and (ii) consequential injunction restraining defendants 2 to 5 from executing that decree. The plaintiff valued the declaratory prayer at Rs. 30,000/- as per S. 25(d)(ii) of the Kerala Court-fees and Suits Valuation Act, hereinafter referred to as “the Act” and a Court-fee of Rs. 1,050/- was payable on it. The defendants entered appearance and filed a written statement. They contended that the suit was not properly valued and, therefore, the Court-fee paid was not correct. Hence an issue was raised as follows:

“Whether the valuation of the suit and court-fee paid are correct?”.

The contention raised by the defendants was that the prayer of the plaintiff actually amounts to setting aside a decree and hence the suit ought to have been valued and Court-fee paid under S. 40 of the Act. Under S. 40 of the Act, in a suit for cancellation of a decree for money or other property having a money value, or other document which purports or operates to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest in money, movable or immovable property, fee shall be computed on the value of the subject-matter of the suit and such value shall be deemed to be if the whole decree or other document is sought to be cancelled the amount or value of the property for which the decree was passed or other document was executed. The trial Court after considering the arguments of both parties held that the relief prayed for by the plaintiff-petitioner amounts to cancellation of decree, under S. 40 of the Act and hence directed to pay Court-fee on the value of the property at Rupees five lakhs. The plaintiff had only paid Court-fee on Rs. 30,000/-. Hence he was directed to pay the balance Court-fee payable on Rs. 4,70.000/-. It is against that order this revision petition was filed.

3. When the revision petition came up for hearing before the learned Single Judge, the counsel for the petitioner contended that the decision in P.K Vasudeva Rao… v. K.C Hari Menon, 1981 Ker LT 763: (AIR 1982 Ker 35), was not correctly decided. Hence the matter was referred to the Division Bench. The Division Bench was of the view that since the correctness of the decision of the Division Bench was raised, this matter is decided by a Full Bench. It is in these circumstances, the matter has come before the Full Bench.

4. After we heard the counsel for the petitioner, counsel for the respondents and the learned Government Pleader, we are of the view that the correctness or otherwise of the decision in P.K Vasudeva Rao… v. K.C Hari Menon, 1981 Ker LT 763: (AIR 1982 Ker 35) does not actually arise for consideration in this case. The said decision was with regard to the scope and meaning of S. 40 of the Act. Section 40 is with regard to valuation and Court-fee of Suits with regard to cancellation of decree. That decision held that in suits to set aside decrees with respect to immovable properties, Court-fee has to be paid on the money value of the property. But in this case, we are taking the view that the suit is to be valued and Court-fee paid under S. 25 of the Act. Hence it is not necessary to go into the question whether the decision in P.K Vasudeva Rao… v. K.C Hari Menon, 1981 Ker LT 763: (AIR 1982 Ker 35), is correct or not.

5. The trial Court directed the petitioner to pay Court-fees under S. 40, since it interpreted the plaint as amounting to cancellation of the decree. The trial Court relied on the decision of the Supreme Court in Shamsher Singh v. Rajinder Prashad, AIR 1973 SC 2384. The Supreme Court in that decision held that the plaintiff therein was really asking for setting aside the decree and for consequential relief of injunction and hence the relief amounted to setting aside the decree.

6. But, on a reading of the plaint in the present case, we find that it cannot be held that the prayer for declaration cannot legally stand. The averments in the plaint are that the plaintiff (who was the defendant in O.S 183 of 1984) was a lunatic at the time when O.S 183 of 1984 was pending and when decree was passed thereon. It is also alleged that no guardian was appointed to represent the plaintiff in that case. The Honourable Supreme Court in the decision reported in Ram Chandra v. Man Singh, AIR 1968 SC 954, has held as follows (at p. 955, para 3):—

“It is now a well-settled principle that, if a decree is passed against a minor without appointment of a guardian, the decree is a nullity and is void and not merely voidable. This principle becomes applicable to the case of a lunatic in view of R. 15 of O. 32 of the Code of Civil Procedure so that the decree obtained against Ram Lal was a decree which has to be treated as without jurisdiction and void. In these circumstances, the sale held in execution of that decree must also be held to be void”.

Thus, if the averments of the plaint in the present case are to be accepted, the decree in O.S 183 of 1984 against the present petitioner is null and void. If the decree is null and void, it is not necessary to set aside the same. Hence according to us, the prayer made in the present plaint cannot be said to be a prayer with a view to get the decree set aside.

7. As already stated, the trial Court relied on the decision of the Supreme Court in AIR 1973 SC 2384. In that case, the facts were different. There, the father executed a mortgage deed in favour of a third person. The father claimed to be the sole owner of the said property. The mortgage was executed for Rs. 25,000/-. The mortgagee filed a suit on the foot of the mortgage and obtained a decree. When he tried to take out execution proceedings for the sale of the mortgaged property, the sons of the mortgagor filed a suit for declaration that the mortgage executed by their father in favour of the mortgagee is null and void and ineffectual as against them as the property was a joint Hindu family property and the mortgage has been effected without consideration and family necessity. Court-fee was paid although it was a suit for declaration. On the objection of the defendant with regard to Court-fees, the Supreme Court held as follows (para 4):—

“It appears to us that the Court-fee payable on a plaint is certainly to be decided on the basis of the allegations and the prayer in the plaint………….. Mere astuteness in drafting the plaint will not be allowed to stand in the way of the Court looking at the substance of the relief asked for. In this case the relief asked for is on the basis that the property in dispute is a joint Hindu family property and there was no legal necessity to execute the mortgage. It is now well settled that under Hindu Law if the manager of a joint family is the father and the other members are the sons the father may by incurring a debt so long as it is not for an immoral purpose lay the joint family estate open to be taken in, execution proceedings upon a decree for the payment of the debt not only where it is an unsecured debt and a simple money decree for the debt but also to a mortgage debt which the father is personally liable to pay and to a decree for the recovery of the mortgage debt by the sale of the property even where the mortgage is not for legal necessity or for payment of antecedent debt. Consequently when the plaintiffs sued for a declaration that the decree obtained by the appellant against their father was not binding on them, they were really asking either for setting aside the decree or for the consequential relief of injunction……”.

It was in this context the Honourable Supreme Court held that the relief amounted to setting aside the decree.

8. But as already held in the present case, the averments in the plaint are that the plaintiff was a lunatic when the suit was instituted and the decree passed. The Hon'ble Supreme Court has held that a decree against a lunatic without a guardian being appointed is a nullity. Hence, we are of the view that in the present case it cannot be held that the prayer for declaration was made as a camouflage for setting aside the decree.

9. The learned counsel for the respondents then submitted that the petitioner paid Court-fee under Sec. 25(d)(ii), which states as follows:—

“(ii) where the subject-matter of the suit is not capable of valuation, fee shall be computed on amount at which the relief sought is valued in the plaint or on rupees one thousand, whichever is higher”.

According to the respondents, the relief for declaration that a decree is not binding is actually a relief sought with reference to an immovable property and hence according to them, Valuation and court-fee had to be paid on the basis of Section 25(b), which states as follows:—

“where the prayer is for a declaration and for consequential injunction and the relief sought is with reference to any immovable property, fee shall be computed on one-half of the market value of the property or on rupees one thousand, whichever is higher”.

We feel that this matter should be enquired into by the trial Court, since we are of the view that Section 40 of the Act is not applicable.

In the result, we set aside the impugned order dated 14-7-1995 in O.S No. 711/1993 passed by the Court below directing the petitioner-plaintiff to value and pay the Court-fees under Section 40 of the Act. We hold that valuation and Court-fee are to be fixed under Section 25 of the Act; but we direct the Court below to consider whether Court-fee is to be paid under S. 25(b) or S. 25(d)(ii) of the Act. The parties will appear in the Court below on April 2, 1998. The Court below will consider the question of sufficiency of the valuation made and the Court fee paid on the basis of the above directions. The Court below will also expedite the trial of the suit and will try to dispose of the suit within a period of six months from 2-4-1998.

The C.R.P is allowed as above.

Order on C.M.P 2631/1995 in C.R.P No. 1518 of 1995-B, Dismissed.

Order accordingly.