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Smart Summary

Factual and Procedural Background

This is a revision filed by the plaintiff against the order dated 8-9-2001 of the 1st Additional District Judge, Sidhi in Civil Suit No. 22-A of 2000 directing the plaintiff to value the suit for court-fee purposes at Rs. 82,500/- and pay ad valorem court-fee. The plaint alleges that defendant No.1 granted the plaintiff a sub-lease of a portion of a plot by lease-deed dated 29-7-1995 and placed him in possession; the plaintiff has raised construction thereon. Defendant No.1 is said to have registered a surrender deed dated 31-12-1999 showing consideration of Rs. 85,500/-, which the plaintiff did not sign and contends is forged. The plaintiff sought a declaration that the surrender deed is void and a permanent injunction restraining defendants from interfering with his possession.

Legal Issues Presented

  1. Whether the court-fee for the relief of declaration in the plaint must be fixed as per Article 17 of Schedule II of the Court Fees Act or paid ad valorem on the basis of the plaint's valuation.
  2. How the relief of permanent injunction should be valued for court-fee purposes—whether under Section 7(iv)(d) of the Court Fees Act and whether the plaintiff's self-valuation is acceptable.
  3. What valuation is to be used for purposes of pecuniary jurisdiction where fixed court-fee (Article 17 Schedule II) is payable for declaration, including applicability of Section 8 of the Suits Valuation Act and rules framed under Section 3 for revenue-paying land.
  4. Whether the Trial Judge erred in considering pleas in the defendant's written statement (including questions of settled possession) when deciding the court-fee question.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sathappa v. Ramanathan, AIR 1958 SC 245 The court-fee question must be considered from the allegations in the plaint and not influenced by pleas in the written statement or final decision on merits. Applied as governing principle; Trial Judge erred in relying on defendant's pleas instead of plaint allegations.
Subhash Chand v. MPEB, 2000(4) M.P.H.T. 318 (FB) = 2000(3) MPLJ 522 Recent Full Bench reference confirming the principle that court-fee is determined by plaint allegations. Noted as a recent reaffirmation of the principle; supports reversal of Trial Judge's approach.
Santosh v. Gyansunder, 1970 MPLJ 363 If plaintiff is not bound by the decree/agreement/document he need not have it set aside and may pay fixed court-fee under Article 17. Held applicable: plaintiff seeking declaration (not bound by document) entitled to pay fixed fee under Article 17; Section 7(iv)(c) not attracted.
Raj Kaur v. Kinetic Gallery, 2000 (2) MPLJ 72 In cases under paragraph (iv) of Section 7 plaintiff may put his own valuation for injunction; value should not be wholly unreasonable or arbitrary. Applied to accept plaintiff's valuation of Rs. 20,000 for injunction under Section 7(iv)(d) as proper.
Sabina v. Mohd. Abdul, 1997 (1) MPLJ 554 Section 7(iv)(d) applicable for valuing relief of injunction; Article 17 of Schedule II applies for court-fee payable for declaration. Relied upon to separate valuation principles for declaration and injunction in this suit.
Ambaram v. Pramilabai, 1997(1) MPLJ 13 Supports view that Section 7(iv)(d) applies to injunction valuation and Article 17 to declaration fee. Noted as consistent authority supporting the same approach.
Moolchand v. Khushed Bi, 1983 MPLJ 767 For revenue-paying land, rules framed under Section 3 of the Suits Valuation Act apply for valuation for pecuniary jurisdiction. Applied to explain that such rules govern valuation for revenue-assessed land, but do not cover non-agricultural land not assessed to land revenue.
Haricharan v. M. Ojha, 2000(2) JLJ 122 Question of court-fee is between the plaintiff and the State; notice to defendants is not necessary. Applied to justify that no notice to defendants was required in this revision regarding court-fee dispute.

Court's Reasoning and Analysis

The Court reiterated the settled principle that court-fee must be determined from plaint allegations and not from defendants' pleas or eventual merits. It held that the Trial Judge erred by considering defendant No.1's pleas and the question of "settled possession" when deciding court-fee. Applying Santosh v. Gyansunder, the Court found that where the plaintiff is not bound by the document he seeks to have declared void, the plaintiff should pay fixed court-fee under Article 17 of Schedule II for declaration and Section 7(iv)(c) is inapplicable. For the injunction claim, Section 7(iv)(d) governs valuation and the plaintiff may set his own valuation so long as it is not unreasonable; Raj Kaur and Sabina were cited to support acceptance of the plaintiff's Rs. 20,000 valuation for injunction. The Court observed that Section 8 of the Suits Valuation Act does not apply where fixed court-fee (Article 17) is payable for declaration; for land not assessed to land revenue the plaintiff must state the value for pecuniary jurisdiction (normally market value), citing Raj Kaur and Moolchand. In this case the plaintiff valued the declaration for jurisdictional purposes at Rs. 85,500, which the Court found cannot be said to be improper. Consequently, directing payment of ad valorem fee on Rs. 85,500 was held to be wrong. The Court set aside the impugned order and advised the Trial Judge to study statutory provisions and case law before reconsidering valuation questions; it also held that no notice to defendants was necessary per Haricharan.

Holding and Implications

Revision allowed; the impugned order is set aside.

Direct consequences: the Trial Judge's direction that the plaintiff pay court-fee ad valorem on Rs. 85,500/- is quashed. The plaintiff is entitled to pay fixed court-fee for declaration under Article 17 Schedule II and the valuation of Rs. 20,000 for injunction under Section 7(iv)(d) is acceptable. The Trial Judge is to reassess valuation for court-fee and jurisdiction after studying the statutory provisions and relevant case law. No broader new precedent was created by this order; the Court applied and followed existing authorities.

    Dharamraj Singh Chhotelal Singh Chouhan v. Vaidya Nath Prasad Khare

    1. This is a revision by the plaintiff against order dated 8-9-2001 of the 1st Additional District Judge, Sidhi in Civil Suit No. 22-A of 2000 by which he has been directed to value the suit for purposes of Court fee at Rs. 82,500/- and pay ad valorem Court-fee.

    2. The relevant averments in the plaint are that the defendant No. 1 granted sub-lease of a portion of the plot shown in red colour in the plaint map to the plaintiff by lease-deed dated 29-7-1995 and placed him in possession thereof; the plaintiff is in possession of this land and has raised some construction thereon; the defendant No. 1 has got surrender deed dated 31-12-1999 in respect of this land registered in his favour in which a consideration of Rs. 85,500/- has been shown; the plaintiff has not signed on this deed and he is not a party to it; it is forged and the defendant No. 1 is threatening to dispossess the plaintiff from that plot. The plaintiff has claimed the relief of declaration that the said surrender deed is void and of permanent injunction for restraining the defendants from interfering with his possession on this plot.

    3. It is well settled that the question of Court fee must be considered in the light of the allegations made in the plaint and its decision cannot be influenced either by the pleas in the written statement or by final decision of the suit on merits. This principle was laid down by the Supreme Court long back in Sathappa v. Ramanathan, AIR 1958 SC 245, and has been recently referred to by the Full Bench of this Court in Subhash Chand v. MPEB, 2000(4) M.P.H.T. 318 (FB) = 2000(3) MPLJ 522. The impugned order shows that the Trial Judge was aware of this principle and yet it has not applied it while deciding the dispute regarding payment of Court fee. He has unnecessarily referred to the pleas of the defendant No. 1 in this respect. He has gone into the question whether the plaintiff is in "settled possession" of the land or not. As already stated, the allegation in the plaint is decisive for computation of Court fee. The question of settled possession or unsettled possession is irrelevant.

    4. The case of the plaintiff is that he is in actual possession of the land and he is not the executant of the surrender deed dated 31-12-1999. In such a situation he is required to pay fixed Court fee as per Article 17 of Schedule II of the Court Fees Act (hereinafter to be referred to as the Act) on the relief of declaration claimed by him. This point has been settled by the Full Bench of this Court in Santosh v. Gyansunder, 1970 MPLJ 363, where it was ruled that if the plaintiff is not bound by the decree, agreement or document he is not required to have it set aside and he can pay Court fee under Article 17 of Schedule I of the Act. In such a case Section 7(iv)(c) of the Act is not attracted.

    5. For claiming the relief of permanent injunction the Court fee payable is as per Section 7(iv)(d) of the Act. The plaintiff is at liberty to put his own valuation on such a relief, of course, it should not be wholly unreasonable or arbitrary. This has been clarified in Raj Kaur v. Kinetic Gallery, 2000 (2) MPLJ 72 that in cases falling within paragraph (iv) of Section 7, the plaintiff is entitled to put his own valuation. The Court normally accepts the valuation put by the plaintiff if it is not too low or high. In the present case the plaintiff has valued the suit for the purpose of injunction under Section 7(iv)(d) of the Act and that valuation is Rs. 20,000/-. He has paid the Court fee accordingly. The market value of the properly is not the criterion for valuation under any of the clauses of Section 7(iv) of the Act. It is the value of the relief sought that is the basis. The plaintiff has correctly valued the suit for injunction. This would also be the value for purposes of pecuniary jurisdiction of the Court for the relief of injunction's per Section 8 of the Suits Valuation Act. In Sabina v. Mohd. Abdul, 1997 (1) MPLJ 554, it has been held that Section 7(iv)(d) would be applicable for valuing the relief of injunction and Article 17 of Schedule II will apply in respect of Court fee payable for declaration. That is also the view taken in Ambaram v. Pramilabai, 1997(1) MPLJ 13.

    6. In a case where fixed Court fee is payable as per Schedule II Article 17 of the Court Fees Act for the relief of declaration the question is what should be the value for purposes of pecuniary jurisdiction. Section 8 of the Suits Valuation Act is inapplicable in this respect of the Court fee is not payable advalorem but it is fixed Court fee which is payable. In respect of revenue paying land rules have been framed under Section 3 of the Suits Valuation Act and these rules would apply for valuation for the purpose of pecuniary jurisdiction as held by a Division Bench of this Court in Moolchand v. Khushed Bi, 1983 MPLJ 767. However, these rules do not cover the land which is not agricultural land and, therefore, not assessed to land revenue. Therefore, as observed in Raj Kaur v. Kinetic Gallery, 2000(2) MPLJ 72, in a suit claiming relief in respect of land or interest in land not liable to be assessed to land revenue, the value has to be put by plaintiff which should be actual value of the relief. It cannot be too high or too low. Normally, value of an immovable is its market value.

    7. In a suit in which fixed Court fee is payable as per Article 17 Schedule II of the Court Fees Act, the market value of the immovable property, is normally the criterion for purposes of the pecuniary jurisdiction. In the present case the suit for purposes of pecuniary jurisdiction has been valued at Rs. 85,500/- so far as the relief of declaration is concerned, and it cannot be said to be improper. The plaintiff is not required to pay the Court fee on the valuation for the purpose of pecuniary jurisdiction. The Trial Judge has wrongly directed the plaintiff to pay the Court fee on the value of Rs. 85,500/- and that order is set aside. The Trial Judge is advised to study the law relating to the Court fee and suits valuation by referring to the statutory provisions and the case law on those provisions and then should proceed to decide the question of valuation of the suit for purposes of Court fee and jurisdiction.

    8. The revision is allowed and the impugned order is set aside. There was no need of notice to the defendants as the question of Court fee is between the plaintiff and the State as held in Haricharan v. M. Ojha, 2000(2) JLJ 122.

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    Comments

    Dharamraj Singh Chhotelal Singh Chouhan v. Vaidya Nath Prasad Khare
    (Dec 11, 2001)