JUDGMENT

K. S. RADHAKRISHNAN, J. –

1. Leave granted.

2. We are, in this case, concerned with the interpretation of Section 37 of the Andhra Pradesh Court Fees and Suits Valuation Act, 1956 (for short "the Court Fees Act") as to whether it authorizes the valuation of the suit on the basis of the sale consideration mentioned in the sale deed or to be valued on the basis of the market value of the property as on the date of presentation of the plaint for the purpose of Court Fee and jurisdiction.

3. Learned Single Judge of the Andhra Pradesh High Court in the impugned judgment placing reliance on the Full Bench judgment of the Madras High Court in Kolachala Kutumba Sastri v. Lakkaraju Bala Tripura Sundaramma & Ors. AIR 1939 Mad. 462, and the Division Bench Judgment of the Andhra Pradesh High Court in Lakshminagar Housing Welfare Association v. Syed Sami @ Syed Samiuddin & Ors. (2010) 5 ALT 96, held that in a suit for cancellation of sale deed, Court Fee has to be determined on the market value of the property as on the date of presentation of the plaint and not the value shown in the registered sale deed, the legality of which is under challenge in these appeals.

4. The Appellants/Plaintiffs filed O.S. No.114 of 2008 on 21.7.2008 before the Court of Junior Civil Judge, Kothavalasa, seeking, inter alia, the following reliefs :-

"(a) to cancel the alleged sale deed dated 2.8.2002 which was got registered as No.2496/05 by the Sub-Registrar, Kothavalasa on dt. 30 July, 2005 as the orders of District Registrar dt. 26.07.2005 as it was obtained fraudulently;

(b) direct the defendants to pay the cost of the suit."

5. Value of the suit for the purposes of Court Fee and jurisdiction was shown as the value of the deed to be cancelled i.e. Rs.1 lakh. Court Fee of Rs.3,426/- was paid under Section 37 of the Court Fees Act, deposited vide Challan No.4239075 dated 29.7.2008. The Appellants/Plaintiffs filed I.A. No.374 of 2008 under Order IX Rule 1 and 2 CPC for grant of temporary injunction restraining the Respondents therein from interfering with peaceful possession and enjoyment of the property and also filed I.A. No.375 of 2008 and sought an order restraining the Respondents from operating the sale deed until the disposal of the suit. During enquiry in I.A. No.375 of 2008, the Appellants/Plaintiffs got market value certificate dated 4.10.2002 as Exh.A-6 showing the market value of the property as Rs.19,36,000/- by the year 2002 and contended that the alleged sale for Rs.1 lakh was a fraudulent transaction.

The Respondents raised an objection that the Civil Judge has no jurisdiction to entertain the suit since the Plaintiff's case is that the market value of the property is more than Rs.1 lakh. It was contended that for cancellation of sale deed, Court Fee has to be calculated on the current market value, but not as per value shown on the document. Reliance was placed on the judgment of the Madras High Court in Kolachala Kutumba Sastri (supra) and T.S. Rajam Ammal v. V.N. Swaminathan & Ors. AIR 1954 Mad. 152, wherein it was held that in a suit for cancellation of sale deed, Court Fee payable is on the market value of the property involved as on the date of the plaint and not on the consideration recited in it.

6. Learned Civil Judge vide his order dated 25.11.2008 took the view that the Court Fee has to be calculated as per the market value on the date of presentation of the plaint and not as per the value shown on the document. Consequently, it was held that the Court has no pecuniary jurisdiction to entertain the suit and the plaint was returned under Order 7 Rule 10 CPC for presentation before the proper Court.

7. The Appellants/Plaintiffs, aggrieved by the said order, filed C.M.A. No.2 of 2009 in the Court of the Judge, Family Court-cum- District and Sessions Judge, Vizianagaram. The appellate Court dismissed the appeal vide its order dated 29.10.2009 holding that the Court below has no jurisdiction to entertain the suit and the plaint was correctl