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Smart Summary

Structured Summary of the Opinion — Hon'ble Vishnu Chandra Gupta, J.

Factual and Procedural Background

This writ petition was disposed of finally at the admission stage after hearing the learned counsel for the petitioners and the learned counsel appearing for opposite parties 1 and 2, without issuing notice to opposite party No. 3.

Opposite party No. 3 had filed a suit for cancellation of a sale-deed dated 13.5.2010 in respect of agricultural land before the IVth Civil Judge (Junior Division), Court No. 36, Lucknow, recorded as Regular Suit No. 656 of 201 (Vir Bahadur Singh v. Smt. Mamta Singh). The petitioners in that suit filed a written statement challenging the trial court's pecuniary jurisdiction and the computation of court fees for the relief sought by the plaintiff.

The trial court, by order dated 10.9.2012, decided both issues in favour of the plaintiff (opposite party No. 3). The petitioners preferred Civil Revision No. 311 of 2012 before the District Judge, Lucknow (subsequently transferred to an Additional District Judge), but the revision failed and the trial court's order dated 10.9.2012 was affirmed. The present writ petition challenges those decisions regarding valuation and court-fee/pecuniary jurisdiction issues.

Legal Issues Presented

  1. Whether the consideration shown in the sale-deed (i.e., the actual consideration paid) is the value on which ad valorem court-fee must be paid and by which pecuniary jurisdiction of the court must be determined in a suit for cancellation of a sale-deed concerning agricultural land.
  2. What is the correct method to determine the market value for the purpose of a suit for cancellation of agricultural land — specifically, whether the market value should be computed under section 7(iv-A) read with subsections (v), (v-A) and (v-B) of the Court Fees Act, 1870 (as applicable in Uttar Pradesh), or be based on the sale-deed consideration.

Arguments of the Parties

Petitioners' Arguments

  • The learned counsel for the petitioners relied upon a judgment of the Apex Court (Shailendra Bhardwaj v. Chandra Pal, 2013 (11) RD 310) and submitted that the consideration stated in the sale-deed is the value on which ad valorem court-fee must be paid for the relief sought in the suit.
  • By parity, the petitioners contended that pecuniary jurisdiction of the court should also be determined with reference to the consideration disclosed in the sale-deed.
  • It was pointed out that the sale-deed in the present case discloses consideration in excess of Rs. 17,50,000/-, and if that amount is taken as the basis for valuation, the Civil Judge (Junior Division), Lucknow would lack jurisdiction and the suit would be under-valued for court-fee purposes.

Opposite Parties' Arguments

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

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Shailendra Bhardwaj v. Chandra Pal, 2013 (11) RD 310 (Supreme Court) The petitioners relied on this Apex Court judgment to argue that the consideration shown in a sale-deed should be the basis for ad valorem court-fee in suits seeking relief such as cancellation (and consequentially for determining pecuniary jurisdiction). The Court noted that the Apex Court's decision concerned the mode of computation of court-fees in suits for declaration under Article 17 of Schedule II (distinguishing between plain declarations and declarations with consequential relief) and held that in suits for declaration with consequential relief, ad valorem court-fee is payable. The present Court found that the Apex Court had not dealt with the specific controversy before it (i.e., valuation for cancellation of agricultural land) and therefore did not apply the precedent to decide the present issue; the precedent was effectively distinguished.

Court's Reasoning and Analysis

The Court first observed that the subject property and the sale-deed in question related to agricultural land. It identified the relevant statutory framework: section 7 of the Court Fees Act, 1870 as applicable in Uttar Pradesh, and in particular sub-section (iv-A) which governs suits for cancellation or adjudging instruments or decrees void or voidable, along with the Explanation to that sub-section that prescribes that "market value" for immovable property shall be determined in accordance with subsections (v), (v-A) or (v-B) of section 7, as applicable.

The opinion reproduces and refers to subsections (v), (v-A) and (v-B) of section 7, which set out detailed modes for determining market value in suits involving possession and related disputes over land (including multiples of revenue, multiples of net profits, and multiples of rental values as recorded in the Collector's register).

The Court considered the petitioners' reliance on the Apex Court judgment (Shailendra Bhardwaj v. Chandra Pal) and noted that the Apex Court had addressed computation of court-fees in the context of suits for declaration under Article 17 of Schedule II and had held that ad valorem court-fee is payable in a suit for declaration with consequential relief. However, the Court observed that the Apex Court did not deal with the specific controversy in the present case — namely, valuation for cancellation of agricultural land.

Applying the statutory text, the Court concluded that for a suit for cancellation in respect of agricultural land the market value (for the purposes of section 7(iv-A)) must be computed in accordance with the provisions of subsection (v) of section 7. Concretely, the Court held that valuation for the purpose of court-fees should be based on the annual rent assessed by the Collector (as provided in subsection (v)), and not on the actual consideration stated in the sale-deed.

The Court further held that the valuation for the purpose of determining pecuniary jurisdiction of the Court is to be determined on the same basis — i.e., in accordance with the statutory scheme (subsection (v) and the Suits Valuation Act as applicable). The opinion notes that there was no dispute between the parties' counsel that the value for court-fee and for pecuniary jurisdiction would be the same.

Having identified and applied the applicable statutory provisions, and having distinguished the cited Apex Court decision as not addressing the precise question before it, the Court found no error in the trial court's order (dated 10.9.2012) and the appellate order which affirmed it. The courts below had applied subsection (v) of section 7 for payment of court-fees and the Suits Valuation Act for pecuniary jurisdiction in a manner consistent with the statutory provisions.

Holding and Implications

Holding: The writ petition is dismissed. The order of the trial court dated 10.9.2012 (as affirmed on revision) stands.

Implications:

  • The direct effect of the decision on the parties is that the valuation for payment of court-fees in the suit for cancellation of the sale-deed (involving agricultural land) and for determination of pecuniary jurisdiction is to be computed under section 7(iv-A) read with subsection (v) of the Court Fees Act (i.e., on the basis of annual rent assessed by the Collector as prescribed), and not by reference to the sale-deed consideration disclosed.
  • The Court distinguished the Apex Court authority relied upon by the petitioners (Shailendra Bhardwaj v. Chandra Pal) as dealing with a different factual and legal context (suits for declaration under Article 17 of Schedule II) and observed that that decision did not resolve the specific controversy in the present case.
  • The opinion does not purport to lay down a broader new precedent beyond the application of the statutory provisions to the facts before the Court; its immediate consequence is the dismissal of the petition and the affirmation of the valuation method used by the courts below.

This summary is strictly confined to the information contained in the provided opinion and does not add, infer, or interpret facts or law beyond what is explicitly stated in that text.

    Mamta Singh v. Addl. District & Session Judge

    Hon'ble Vishnu Chandra Gupta, J.

    This writ petition is being disposed of finally at the admission stage after hearing the learned counsel for the petitioners and the learned counsel appearing for opposite parties 1 and 2 without issuing notice to opposite party No. 3.

    A suit for cancellation of sale-deed dated 13.5.2010, which was in respect of agricultural land, was filed by opposite party No. 3 before IVth Civil Judge (Junior Division), Court No. 36, Lucknow having Regular Suit No. 656 of 201, Vir Bahadur Singh v. Smt. Mamta Singh. The petitioners filed written statement in the suit assailing the pecuniary jurisdiction as well as computation of court fees for seeking relief by the plaintiff. The trial court vide its order dated 10.9.2012 decided both issues in favour of plaintiff, the opposite party No. 3 in this writ petition. Against the said order, petitioners preferred Civil Revision having No. 311 of 2012 in the court of District Judge, Lucknow which was subsequently transferred to the court of Additional District Judge, Room No. 8, Lucknow. The petitioners could not succeed in the revision and the order dated 10.9.2012 passed by the IVth Civil Judge (Junior Division), Court No. 36, Lucknow was affirmed.

    It is not in dispute that property in question and the subject matter of sale-deed is agricultural land. The provisions of Court Fees Act, 1870 (hereinafter referred to as the ‘Act’) as applicable in the state of Uttar Pradesh provide the manner of payment of court fees under section 7 of the Act. For the purpose of cancellation or adjudging void instruments and decrees the provisions are contained in sub section (iv-A) of section 7 of the Act.

    The provisions of sub section of (iv-A) of section 7 are reproduced here-in-below.

    For cancellation or adjudging void instruments and decrees- (IV-A) In suits for or involving cancellation of or adjudging void or voidable a decree for money or other property having a market value, or an instrument securing money or other property having such value:

    (1) where the plaintiff or his predecessor in title was a party to the decree or the instrument, according to the value of the subject matter, and

    (2) where he or his predecessor-in-title was not a party to the decree or instrument, according to one fifth of the value of the subject matter, and such value shall be deemed to beif the whole decree or instrument is involved in the suit, the amount for which or value of the property in respect of which the decree was passed or the instrument executed, and if only a party of the decree or instrument is involved in the suit, the amount or value of the property to which such part relates.

    Explanation- The value of the property for the purposes of this sub-section, shall be the market value, which in the case of immovable property shall be deemed to be the value as computed in accordance with sub-sections (v)(v-A) or (v-B), as the case may be”.

    The explanation added to this sub section clearly provides that for the purpose of sub section the market value in the case of immovable property shall be deemed to be the value as computed in accordance with sub sections (v), (v-A) and (v-B), as the case may be.

    For ready reference sub sections (v), (v-A) and (v-B) of section 7 of the Act as applicable in the state of Uttar Pradesh are reproduced hereinbelow:-

    “(v)- For possession of lands, houses and gardens-(v) In suits for the possession of land, buildings and gardens

    -according to the value of the subject matter; and such value shall be deemed to be-

    (I) Where the subject-matter is land, and -

    (a) where the land forms an entire estate or a definite share of an estate, paying annual revenue to Government, or forms part of such an estate, and is recorded in the Collector's register as separately assessed with such revenue and such revenue is permanently settled -

    thirty times the revenue so payable:

    (b) where the land forms an entire estate, or a definite share of an estate, paying annual revenue to Government, or forms part of such estate and is recorded as aforesaid and such revenue is settled by not permanently-

    ten times the revenue so payable:

    (c) where the lands pays no such revenue, or has been partially; exempted form such payment, or is charged with any fixed payment in lieu of such revenue, and net profits have arisen from the land during the three years immediately preceding date of presenting the plaint-

    twenty times the annual average of such net profits, but when no such net profits have arisen therefrom the market value which shall be determined by multiplying by twenty the annual average net profits of similar land for three years immediately preceding the date of presenting the plaint;

    (d) where the land forms part of an estate paying revenue to Government, but is not a definite share of such estate and does not come under clause (a), (b) or (c) above-

    the market value of the land which shall be determined by multiplying by fifteen the rental value of the land, including assumed rent on proprietary cultivation, if any;

    (II) where the subject matter is a building or garden-according to the market-value of the building or garden, as the case may be.

    Explanation- The word ‘estate’ as used in this subsection, means any land subject to the payment of revenue for which the proprietor or farmer or raiyat shall have executed a separate engagement to Government or which, in the absence of such engagement, shall have been separately assessed with revenue.

    For possession of superior proprietary and under-proprietary land-(v-A) In suits for possession-

    (1) of superior proprietary rights where under-proprietary or sub proprietary rights exist in the land-according to the market-value of the subject-matter, and such value shall be determined by multiplying by fifteen the annual net profits of the superior proprietor;

    (2) of under-proprietary or sub-proprietary land as such-

    according to the value of subject-matter, and such value shall be determined by multiplying by ten the annual under-proprietary or sub-proprietary rent, as the case may be, recorded in Collector's register as payable for the land for the year next before the presentation of the plaint.

    If no such rent is recorded in the Collector's register the value shall be determined in the manner laid down in clause (c) of sub-section (v) of this section save that the multiple will be ten.

    Explanation- Land held by any permanent lessees shall be treated for the purposes of this sub-section, as under-proprietary or sub proprietary land.

    (v-B) Possessory suits between tenants- In suits for possession of land between rival tenants and tenants against trespasser-

    according to the value of the subject-matter and such value shall be determined if such land is the land of -

    (a) a permanent tenure-holder or a fixed rate tenant-by multiplying by twenty the annual rent recorded in Collector's register as payable for the land for the year next before the presentation of the plaint;

    (b) an ex-proprietary or occupancy tenant-by multiplying by two such rent in case of suits for possession of land between rival tenants, and by annual rent in suits by tenants against trespasser;

    (c) any other tenant-by annual rent.

    If no such rent is recorded in the Collector's register, the value shall be determined in the manner laid down in clause (c) of sub-section (v) of this section save that the multiple shall be that entered in clause (a), (b) and (c) of this sub-section according as the class of tenancy affected is governed by clause (a), (b) or (c) of this sub-section.”

    Learned counsel for the petitioners after relying upon a judgment of Apex court submitted that the consideration passed under sale deed would be the value on which ad valorem Court fee has to be paid by the plaintiff for the relief sought in the suit and similarly pecuniary jurisdiction of the court shall also be determined in accordance with amount of consideration disclosed in the sale-deed and contended that sale deed executed in this case discloses the consideration of more than Rs. 17,50,000/-. Therefore, for the purpose of payment of court fees the valuation of the suit as well as for determination of pecuniary jurisdiction, the amount of consideration of sale-deed disclosed should be taken. If this amount is taken, the court of Civil Judge (Junior Division), Lucknow would not have the jurisdiction to entertain the suit and the suit is also under valuation for the purpose of court fee.

    In support of his contentions, the learned counsel for the petitioners relied upon the judgment of Apex Court reported in 2013 (11) RD 310 Supreme Court, Shailendra Bhardwaj v. Chandra Pal.

    The controversy before the Apex Court in this matter was that what would be the mode of determination of court fees in the suit for declaration under Article 17 of Schedule II of the Act. The Hon'ble Supreme Court considered the mode of computation of court fees for the suit for declaration wherein the plain relief for declaration was sought and other in which decree of declaration with consequential relief was sought. The Apex Court held that in a suit for declaration with consequential relief, the ad valorem court fee shall be payable. The Apex Court has not dealt with controversy, which is involved in the present case.

    The controversy involved in the case in hand is; what would be the market value for the purpose of suit for cancellation in respect of agricultural land?

    The court on the basis of provisions contained in sub section (v) of section 7 of the Act decided the suit for the purpose of determination of court fee, which will be on the basis of annual rent assessed by the Collector and not on the basis of actual consideration passed under the sale-deed.

    Similarly, the suit for the purpose of valuation for pecuniary jurisdiction of the Court was also determined in accordance with provisions of suit valuation on the basis of annual rent assessed by the Collector.

    It has not been disputed by the learned counsel for the petitioners that value determined for the payment of court fee as well as for pecuniary jurisdiction of the Court would be the same. The trial court decided the issues in light of the provisions of sub section (v) section 7 of the Act for payment of court fees and in the light of the Suits Valuation Act for the purpose of pecuniary jurisdiction. There appears no mistake or any violation of statutory provision while passing the impugned orders by the courts below..

    Consequently, this petition is devoid of merit. It is accordingly dismissed.

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    Comments

    Mamta Singh v. Addl. District & Session Judge
    (Jul 28, 2014)