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Bhagwan Kaur And Others v. Amrik Singh And Others

Punjab & Haryana High Court
Aug 8, 2006
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Factual and Procedural Background

The present revision petition challenges the order passed by the learned trial Court on 15.12.2004, which dismissed the defendants' application for rejection of the plaint under Order 7 Rule 11 of the Code of Civil Procedure, 1908, on the ground of insufficient court-fees affixed in a suit for declaration. The plaintiffs filed a suit claiming ownership of the suit land and sought to declare two gift deeds dated 21.5.1977 and 25.5.1977 as illegal, null, and void. The suit was valued at Rs. 200/- for court-fee purposes, despite the alleged value of the land being not less than Rs. 10 crores. The plaintiffs claimed joint possession and sought a permanent injunction restraining the defendants from alienating the suit land. The defendants applied for the plaintiffs to pay ad valorem court-fee, contending that the challenge to the gift deeds required such fee, but the trial Court dismissed this application.

Legal Issues Presented

  1. Whether the suit for declaration challenging the validity of gift deeds in joint Hindu family property requires payment of ad valorem court-fee under the Court Fees Act, 1870.
  2. Whether the Full Bench judgment in Niranjan Kaur v. Nirbigan Kaur applies to the facts of the present suit regarding court-fee valuation.
  3. The applicability of consequential reliefs in determining the appropriate court-fee under Section 7(iv)(c) of the Court Fees Act.

Arguments of the Parties

Petitioners' Arguments

  • Since the suit challenges the validity of the gift deeds, ad valorem court-fee is required to be affixed.
  • Reliance on various precedents including Himanshu v. Smt. Kailash Rani, Iron Master (India) Pvt. Ltd. v. Punjab National Bank, Ranjit Singh v. Balkar Singh, Om Parkash v. Indrawati, Bagvawat v. Mehar Chand, and Jagdish v. Jagat Pal, as well as the Full Bench judgment in Niranjan Kaur v. Nirbigan Kaur, to support the requirement of ad valorem court-fee.

Court's Response to Petitioners' Arguments

  • The argument is misconceived as the Full Bench judgment in Niranjan Kaur is not correctly interpreted by the petitioners.
  • The Full Bench held that when the main relief is declaration and consequential reliefs are ancillary, ad valorem court-fee under Section 7(iv)(c) is attracted only if consequential reliefs are claimed and necessary.
  • In suits by sons or members of a coparcenary under Hindu Law for declaration, the main relief is declaration and injunction is ancillary; thus, ad valorem court-fee is not required.
  • Reliance on certain judgments cited by the petitioners is not tenable as they run counter to the Full Bench principles.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Niranjan Kaur v. Nirbigan Kaur, 1981 PLJ 423 (FB) Requirement of ad valorem court-fee under Section 7(iv)(c) of the Court Fees Act when the main relief is declaration with consequential relief. Distinguished and applied to hold that in suits by coparceners for declaration with ancillary relief, ad valorem court-fee is not required.
Himanshu v. Smt. Kailash Rani, 2004 (4) RCR (Civil) 582 Ad valorem court-fee requirement in certain suits. Considered but not found applicable as per Full Bench principles.
Iron Master (India) Pvt. Ltd. v. Punjab National Bank, 2002 (2) RCR (Civil) 404 Ad valorem court-fee required where plaintiffs are parties challenging a decree. Applied to distinguish facts; not applicable to present suit.
Ranjit Singh v. Balkar Singh, 2001 (1) RCR (Civil) 573 Ad valorem court-fee in suits. Found not helpful as consequential relief was not claimed.
Om Parkash v. Indrawati, 2002 (2) PLR 853 Ad valorem court-fee in suits. Found not helpful due to absence of consequential relief.
Bagvawat v. Mehar Chand, 2001 (4) RCR (Civil) 94 Ad valorem court-fee in declaration suits challenging sale deeds. Held contrary to Full Bench and thus not relied upon.
Jagdish v. Jagat Pal, 2003 (2) RCR (Civil) 732 Ad valorem court-fee in declaration suits. Held contrary to Full Bench and thus not relied upon.
Gurjeewan Singh v. Jagar Singh, 1990 Civil Court Cases 240 (P&H) Ad valorem court-fee not required when challenge is to alienation of joint Hindu family property. Applied to support the impugned order.
Bhag Singh v. Jarnail Singh, 1990 Civil Court Cases 666 (P&H) Ad valorem court-fee not required where plaintiff is in possession. Applied to support the impugned order.

Court's Reasoning and Analysis

The Court analyzed the Full Bench judgment in Niranjan Kaur v. Nirbigan Kaur to clarify the scope of Section 7(iv)(c) of the Court Fees Act, 1870. It emphasized that ad valorem court-fee is required only when the main relief is declaratory and consequential relief is ancillary but claimed and necessary. The Court distinguished the present suit filed by coparceners in a joint Hindu family property, where the main relief is declaration and injunction is ancillary, thus not attracting the requirement for ad valorem court-fee. The Court found that the petitioners' reliance on other precedents was misplaced as those cases either involved different facts or did not claim consequential relief. The Court also referred to judgments holding that ad valorem court-fee is not required in suits challenging alienation of joint Hindu family property where the plaintiff is in possession. Considering these principles, the Court found no patent illegality or material irregularity in the trial Court's order dismissing the defendants' application.

Holding and Implications

DISMISSED.

The Court upheld the trial Court's order rejecting the defendants' application for rejection of the plaint on the ground of insufficient court-fees. The decision means that in suits by coparceners challenging gift deeds with declaration as the main relief and injunction as ancillary relief, ad valorem court-fee under Section 7(iv)(c) of the Court Fees Act is not required. The ruling directly affects the parties by affirming the validity of the plaint and does not set any new precedent beyond the interpretation of existing Full Bench authority.

Show all summary ...

Hemant Gupta, J.:— The challenge in the present revision petition is to the order passed by the learned trial Court on 15.12.2004 whereby an application filed by the defendants for rejection of the plaint under Order 7 Rule 11 of the Code of Civil Procedure, 1908 (hereinafter to be referred as “the Code”) on account of insufficient court-fees affixed in a suit for declaration was dismissed.

2. The plaintiffs have filed a suit for declaration to the effect that they are the owners of the suit land and the gift deeds dated 21.5.1977 and 25.5.1977 are illegal null and void and liable to be set aside. The suit has been valued for the purposes of court-fee and jurisdiction at Rs. 200/- though it is alleged that the value of the land in question was not less than Rs. 10 crores. The plaintiffs have claimed themselves to be in joint possession and sought consequential relief of permanent injunction restraining the defendants from alienating the suit land.

3. The defendants moved an application for directing the plaintiffs to pay ad valorem court-fee since the challenge in the suit is to the gift deeds. Learned trial Court dismissed the said application on the ground that the plaintiffs have sought declaration being coparceners in the joint Hindu family property and the challenge to the gift deeds is ancillary and, therefore, the Full Bench judgment of this Court, referred to by learned counsel for the defendants, reported as Niranjan Kaur v. Nirbigan Kaur, 1981 PLJ 423 (FB) was found to be not applicable to the fact of the present case.

4. Learned counsel for the petitioners has relied upon Himanshu… v. Smt. Kailash Rani…, 2004 (4) RCR (Civil) 582 : 2004 (3) PLR 513; Iron Master (India) Pvt. Ltd. v. Punjab National Bank, 2002 (2) RCR (Civil) 404 : 2002 (2) Civil Court Cases 190 (P&H); Ranjit Singh… v. Balkar Singh…, 2001 (1) RCR (Civil) 573 : 2001 (2) Civil Court Cases 45 (P&H); Om Parkash… v. Indrawati…, 2002 (2) PLR 853; Bagvawat v. Mehar Chand, 2001 (4) RCR (Civil) 94 and Jagdish… v. Jagat Pal…, 2003 (2) RCR (Civil) 732 : 2002 PLJ 268 apart from the judgment in Niranjan Kaur's case (supra) to contend that since the challenge is to the gift-deeds in the suit, ad valorem court-fee is required to be affixed.

5. However, I am unable to agree with the argument raised by learned counsel for the petitioners. The argument raised by the learned counsel for the petitioners is misconceived in law. The judgment of Full Bench of this Court in Niranjan Kaur's case (supra) is not being read correctly by the learned counsel for the petitioners. The Full Bench was seized of a case where the plaintiff, who was a party to a document, filed a suit for cancellation of a registered document and also sought possession as a consequential relief thereof. It was found that in order to bring the case under Section 7(iv)(c) of the Court Fees Act, 1870 (hereinafter to be referred as ‘'the Act”), the main and substantive relief should be that of declaration and the consequential relife should be ancillary thereto. If no consequential relief is claimed or could be claimed in the suit, then Section 7(iv)(c) of the Act will not be attracted. In a suit to obtain declaratory decree where no consequential relief is prayed, sub-clause (iii) of Article 17 of Schedule II of the Act shall be applicable. The Full Bench found that the suit was virtually for the cancellation of the sale-deeds and the plaintiff cannot obtain possession unless such decree is cancelled by a decree of the Court. Thus, it was a suit for declaration for cancellation of the sale-deed and possession as a consequential relief thereof. Thus, where consequential relief of possession cannot be granted without cancellation of the document, those cases alone will attract ad valorem court-fees. Still further, the said principle would not be applicable in respect of the suit for declaration by a son or a member of the coparcenary under Hindu Law. The Full Bench itself found that such suits would be on a different footing. In such suits, the main relief would be that of declaration and consequential relief of injunction restraining the decree-holder from executing the decree against the son will be just ancillary. The following observations would be relevant to appreciate the controversy raised herein:—

“8. It is the common case of the parties that in case the main relief in the suit is held to be that of cancellation of the sale-deed, then the case is not covered by Section 7(iv)(c) and the only provision applicable is Article 1, Schedule I of the Act. In order to bring the case under Section 7(iv)(c) of the Act, the main and substantive relief should be that of a declaration and the consequential relief should be ancillary thereto. Moreover, if no consequential relief is claimed or could be claimed in the suit, then Section 7(iv)(c) will not be attracted. Section 7(iv)(c) clearly contemplates suits to obtain the declaratory decree or order where consequential relief is prayed. It further provides that in all such suits, the plaintiff shall state the amount at which he values the relief sought. A further proviso has been added thereto by the Punjab Act No. 31 of 1953, which reads as follows:—

“Provided further that in suits coming under sub-clause (c) in cases where the relief sought is with reference to any property such valuation shall not be less than the value of the property calculated in the manner provided for by clause (v) of this section”.

9. In a suit to obtain declaratory decree where no consequential relief is prayed, sub-clause (iii) of Article 17 of Schedule II of the Act will be applicable, but the suit filed by the plaintiff-petitioner was virtually, to all intents and purposes, for the cancellation of the sale-deed, executed by her, in favour of the defendant-respondent. She cannot claim possession unless the said deed is cancelled by a decree of the Court….”

“6……A suit for declaration by a son or a member of a coparcenary under the Hindu Law will thus be on a different footing. In such a suit, the main relief will be that of a declaration and the consequential relief of injunction restraining the decree-holder from executing the decree against the sons etc. will be just ancillary……”

6. In the light of aforesaid judgment, it may be noticed that Bagrawat's case (supra) and Jagdish's case (supra) were the cases where the suit was for a declaration challenging the legality of the sale-deed executed in respect of a joint Hindu family property. The said judgments run counter to the principles laid down by the Full Bench of this Court and, therefore, reliance on the said judgments is not tenable. In Iron Master (India) Limited's case (supra), the bank had filed a suit for recovery. The said decree was sought to be challenged by the plaintiffs on the ground of fraud and misrepresentation. It was rightly held therein that ad valorem court-fees is required to be affixed as the plaintiffs are party to the said suit. In Ranjit Singh's case (supra) and Om Parkash's case (supra), it cannot be found out that any consequential relief was claimed and, therefore, the said judgments would again does not provide any assistance to the petitioners.

7. This Court in Gurjeewan Singh v. Jagar Singh, 1990 Civil Court Cases 240 (Punjab & Haryana) has held that ad valorem court-fee is not required to be affixed where the challenge is to be alienation of joint Hindu family property, whereas in Bhag Singh v. Jarnail Singh, 1990 Civil Court Cases 666 (P&H), it has been held that where the plaintiff is in possession, ad valorem court-fee not required to be affixed.

8. In view of the judgment of Full Bench of this Court as interpreted in the aforesaid judgments, I do not find any patent illegality or material irregularity in the impugned order passed by the learned trial Court which may warrant interference by this Court in exercise of its revisional jurisdiction.

9. Dismissed.

Petition dismissed.