AMICUS AI
Citation Codes
Neutral Citations
2001 INSC 579
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Neutral Citations
2001 INSC 579
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

Kamaleshwar Kishore Singh and his two minor sons (suing through him as next friend) instituted TP Suit No. 489 of 1993 before the Court of Sub-Judge I, Patna, seeking partition of movable and immovable properties described in two schedules to the plaint. The plaintiffs allege that the parties constitute a joint Hindu Mitakshara family and that the properties were acquired with joint family funds. They claim a share of “25/3 paise out of 100 paise,” value the suit at Rs 16 lakhs for jurisdiction, and affix a fixed court fee of Rs 29.25 on the footing that it is a simple partition suit.

Defendant 20 filed an application on 3-10-1996 contending that properties standing in her name were her self-acquired assets wrongfully included in the suit. She sought either deletion from the suit or a direction that the plaintiffs pay ad valorem court fee on those properties valued at Rs 30,50,000. On 17-12-1996 the trial court allowed her petition and directed the plaintiffs to pay ad valorem court fee calculated at “10% above” the values shown in her sale deeds.

Defendant 20 then sought correction, stating that the order should have required payment on “10 times,” not “10%,” of the sale-deed values. By order dated 1-3-1997, the trial court modified its earlier order and directed payment of ad valorem court fee on Rs 29,39,760 (Rs 10,39,760 for land values multiplied ten-fold plus Rs 19 lakhs for a four-storeyed house).

Plaintiff 1 challenged the 1-3-1997 order by a civil revision under Section 115 CPC before the Patna High Court, primarily asserting that it was passed without giving him an opportunity to be heard. On 20-8-1997 the High Court dismissed the revision, terming the 1-3-1997 order a mere clerical correction. The plaintiffs then sought special leave to appeal, resulting in the present Supreme Court judgment.

Legal Issues Presented

  1. Whether the trial court was justified in directing the plaintiffs to pay ad valorem court fee based on a valuation computed at ten times the sale-deed values of properties standing in the name of Defendant 20.
  2. Whether the order dated 1-3-1997 constituted only a correction of a clerical error or amounted to a substantive modification requiring notice and hearing.
  3. Whether the Patna High Court erred in dismissing the civil revision without examining the correctness of both trial court orders dated 17-12-1996 and 1-3-1997.

Arguments of the Parties

Plaintiffs' Arguments

  • The 1-3-1997 order was passed without affording the plaintiffs an opportunity of hearing and therefore violated principles of natural justice.
  • The suit, being a simple partition action, had been correctly valued and the fixed court fee already paid was sufficient.

Defendant 20's Arguments

  • During arguments on 17-12-1996, the plaintiffs allegedly conceded that they would pay ad valorem court fee and requested Defendant 20 to file her sale deeds to ascertain valuation; this concession should bind them.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court held that the trial court's order of 1-3-1997 was not a mere clerical correction but a substantive departure from the 17-12-1996 order, as it required valuation at ten times rather than ten per cent and introduced the valuation of a four-storeyed house. Because the order materially altered the plaintiffs’ obligation, it could not be treated as a simple correction.

The Court reiterated settled principles governing court-fee valuation:

  • Court fee is payable on the plaint as framed, not on how the court or a defendant believes it ought to have been framed.
  • The court assumes the truth of the plaint averments when determining court fee, unless the pleading is a device to evade court fee or jurisdiction.
  • Defences in the written statement are generally irrelevant to the plaintiff’s obligation to pay court fee.
  • An arbitrary or manipulative valuation may be interfered with, but any interference must be grounded in law.

The trial court’s orders cited no statutory provision or binding precedent, and the High Court failed to examine their legality. Consequently, the High Court should have scrutinised both orders rather than treating the latter as a clerical correction.

The Supreme Court noted the defendant’s submission about the plaintiffs’ alleged concession but left its effect for the High Court to consider on remand.

Holding and Implications

APPEAL ALLOWED. The Patna High Court’s order dated 20-8-1997 is set aside, and Civil Revision No. 901 of 1997 is restored for fresh decision after hearing the parties.

Implications: The High Court must now determine afresh the proper valuation of the suit and the corresponding court fee, considering both trial court orders and the legal principles outlined by the Supreme Court. The decision does not create new precedent but re-emphasises existing principles on court-fee valuation and procedural fairness, while directing expedited disposal so that the underlying partition suit can proceed.

To access the original judgment, please Sign In or Subscribe.

    Kamaleshwar Kishore Singh v. Paras Nath Singh And Others

    Judgment

    1. Leave granted.

    2. Kamaleshwar Kishore Singh, the appellant and his two minor sons suing through the appellant as next friend, have filed a suit for partition of movable and immovable properties registered as TP Suit No. 489 of 1993 in the Court of Sub-Judge I, Patna. A perusal of the plaint shows that the parties are alleged to be members of joint Hindu Mitakshara family and the properties forming subject-matter of the suit, set out in the two schedules annexed with the plaint (Schedule I listing the immovable properties and Schedule II listing the movable properties) are alleged to be joint family properties of the parties. The source of acquisition of properties is alleged to be joint family funds. The share claimed by the plaintiffs is “25/3 paise out of 100 paise”. The remaining shares belong to the defendants. The reliefs sought for are: (i) a preliminary decree defining plaintiffs' share at “25/3 paise” in the suit properties described in Schedules I and II of the plaint, (ii) appointment of a Commissioner to divide the properties by metes and bounds, and (iii) placing the plaintiffs in exclusive possession over the property falling in their share. The suit is valued at Rs 16 lakhs for the purpose of jurisdiction but according to the plaintiffs it being a simple suit for partition a fixed court fee of Rs 29.25p only is liable to be paid which has been affixed on the plaint.

    3. It appears that Defendant 20 moved an application on 3-10-1996 submitting that the properties exclusively belonging to her, being her self-acquired properties, as evidenced by the documents filed by her with the written statement, have been included in the suit for partition and so either Defendant 20 be deleted from the array of the parties or in the alternative the plaintiffs be directed to pay ad valorem court fee on the market value of the properties standing in the name of this defendant amounting to Rs 30,50,000. By order dated 17-12-1996 the trial court allowed the objection petition filed by Defendant 20 and directed as under:

    “… the petition of Defendant 20 dated 3-10-1996 is allowed and the plaintiffs directed to first pay ad valorem court fee over the properties standing in the name of Defendant 20 which were included in the suit property on the value of 10% above as given in the sale deeds of these properties the photocopy of which has been filed on behalf of Defendant 20. Put up on 9-1-1997.”

    4. After the passing of the above order, Defendant 20 moved yet another petition submitting that the plaintiffs should have been directed to pay ad valorem court fee on Rs 29,39,760, the value of the land and the houses standing thereon, included in the suit property and that there was a typing mistake in the order dated 17-12-1996 wherein the direction should have been to pay court fee on “10 times” of the value of the properties given in the sale deeds (filed by Defendant 20) and not “10%” as typed in the said order. By order dated 1-3-1997 the trial court directed as under:

    “… the petition of Defendant 20 dated 9-1-1997 is allowed and the order passed by this court dated 17-12-1996 is also corrected and modified and the plaintiff is directed to pay ad valorem court fee over the value of Rs 29,39,760. Put up on 10-5-1997 for filing the same.”

    5. A perusal of the above order shows the trial court having been persuaded to hold that 10 times of the value of the properties calculated on the basis of deeds filed by Defendant 20 with her written statement comes to Rs 10,39,760 to which should be added value of 4 storeyed constructed pucca house which is Rs 19 lakhs and thus the suit should have been valued at Rs 29,39,760 and ad valorem court fee paid thereon by the plaintiffs.

    6. Feeling aggrieved by the order dated 1-3-1997 Plaintiff 1 filed a civil revision under Section 115 CPC before the High Court of Patna. The principal grievance raised by the appellant before the High Court was that the order dated 1-3-1997 was passed without affording him any opportunity of hearing and hence was liable to be set aside. By the impugned order dated 20-8-1997 the High Court has dismissed the revision forming an opinion that the order dated 1-3-1997 was an order directing only a clerical error to be corrected which the court was empowered to do and hence no fault could be found with the impugned order. The plaintiff has filed this petition seeking special leave to appeal.

    7. In our opinion the appeal deserves to be allowed and the matter deserves to be remitted back to the High Court for decision afresh. Without going into the question whether the order dated 17-12-1996 suffered from only a clerical error it is clear that the order dated 1-3-1997 was in substantial departure from the order dated 17-12-1996. By order dated 1-3-1997 the trial court directed the plaintiffs to value the suit at 10 times the value given in the sale deeds of the properties, the photocopies whereof were filed by Defendant 20 with the written statement. A reading of the order dated 1-3-1997 shows that this order could not have been construed as the one correcting a clerical/typing error only; it substantially modified the earlier order dated 17-12-1996 and in effect was the real order causing grievance to the plaintiffs. The order dated 1-3-1997 is not to be read in isolation. The revision filed by the plaintiff-appellant before the High Court could not have been disposed of without testing the correctness of both the orders dated 17-12-1996 and 1-3-1997.

    8. It is well settled that the court fee has to be paid on the plaint as framed and not on the plaint as it ought to have been framed unless by astuteness employed in drafting the plaint the plaintiff has attempted at evading payment of court fee or unless there be a provision of law requiring the plaintiff to value the suit and pay the court fee in a manner other than the one adopted by the plaintiff. The court shall begin with an assumption, for the purpose of determining the court fees payable on plaint, that the averments made therein by the plaintiff are correct. Yet, an arbitrary valuation of the suit property having no basis at all for such valuation and made so as to evade payment of court fees and fixed for the purpose of conferring jurisdiction on some court which it does not have, or depriving the court of jurisdiction which it would otherwise have, can also be interfered with by the court. It is the substance of the relief sought for and not the form which will be determinative of the valuation and payment of court fee. The defence taken in the written statement may not be relevant for the purpose of deciding the payment of court fee by the plaintiff. If the plaintiff is ultimately found to have omitted to seek an essential relief which he ought to have prayed for, and without which the relief sought for in the plaint as framed and filed cannot be allowed to him, the plaintiff shall have to suffer the dismissal of the suit. These principles of law were overlooked by the trial court in passing the impugned order which was put in issue before the High Court. We are further of the opinion that though the revision preferred by the plaintiff was directed against the order dated 1-3-1997, the real question arising before the High Court was to find out whether the suit was properly valued and proper court fee was paid thereon in accordance with law. While doing so if the High Court was required to examine the correctness or otherwise of the order dated 17-12-1996 it should not have felt inhibited from doing so. In the facts of the present case we are clearly of the opinion that the High Court was not justified in dismissing the revision on the ground that the order dated 1-3-1997 was an order correcting a clerical or typing error only.

    9. The two orders of the trial court do not refer to any relevant provision of law or a binding precedent based on which the trial court was persuaded to take the view which it did.

    10. The learned counsel for the defendant-respondent pointed out that during the course of arguments, on 17-12-1996, the plaintiff had agreed to pay the ad valorem court fees on the properties and asked the defendant-applicant to file the deeds of the said properties in order to ascertain the valuation of the said property. What is the effect of such concession shall also be taken into consideration by the High Court and we express no opinion thereon.

    11. The appeal is allowed. The impugned order of the High Court dated 20-8-1997 is set aside. Civil Revision No. 901 of 1997 shall stand restored on the file of the High Court. The High Court shall after affording the contesting parties an opportunity of hearing decide the revision afresh and expeditiously, consistently with the observation made hereinabove. A short point is arising for decision and much time has already been lost. Further, the pendency of the revision has stalled the progress of the suit pending before the trial court.

    Use AI to get other relevant cases.

    Comments

    Kamaleshwar Kishore Singh v. Paras Nath Singh And Others
    (Nov 22, 2001)