C. V. N. SASTRY, J.

( 1 ) THE question, which arises for consideration in this C. R. P. relates to the Court fees payable by the defendant in the suit in respect of adjustment/set off/counter-claim pleaded in the written statement. Undisputably if the claim made by the defendant in the written statement merely amounts to a plea of payment or adjustment of the suit claim, no Court fees is payable. On the other hand, if it amounts to a set off or counter-claim, Court fees is required to be paid in view of Section 8 of the A. P. Court Fees and Suits Valuation Act, 1956 which provides that the written statement pleading a set off or counter-claim shall be chargeable with fee in the same manner as a plaint. For a proper appreciation of the question involved, it is necessary to refer to the factual matrix.

( 2 ) THE plaintiff/company appointed the defendant/firm as its consignment agent by agreement dated 5-1-1990 for distribution and sale of its products in the State of Andhra Pradesh. By a notice dated 30-11-1993, the plaintiff terminated the said agreement with effect from 31-12-1993. According to the plaintiff, the termination was, however, postponed till 31-3-1994 at the request of the defendant. On 28-2-1994, the plaintiff issued a fresh notice terminating the agreement with effect from 31-3-1994 and filed the suit for recovery of a sum of Rs. 68,16,078-68 representing the outstanding amount due to the plaintiff towards the goods entrusted by the plaintiff to the defendant together with interest thereon at 18% per annum from 10-4-1994 till the date of filing of the suit.

( 3 ) IN the written statement filed by it, the defendant, while questioning the termination of the agreement by the plaintiff as illegal, pleaded that after mutual negotiations, an understanding was arrived at between the parties on 2-12-1993 to extend the distributorship of the defendant for a further period of three years from 31-12-1993. The defendant also pleaded that it had returned to the plaintiff damaged/unsaleable stocks valued at Rs. 35,90,808. 00 during the period 1990-91 to 1993-94 which had to be adjusted by the plaintiff to the credit of the defendant but the plaintiff did not do so fraudulently. As such the defendant claimed adjustment of the said amount in reduction of the suit claim. The defendant next claimed that it had to get a sum of Rs. 2,40,000-00 towards commission for the month of March, 1994 and the expenditure incurred by it. The defendant finally claimed in the written statement damages from the plaintiff for breach of contract at the rate of Rs. 1,00,000-00 per month for a period of three years amounting to Rs. 36,00,000-00. Thus according to the written statement, a total amount of Rs. 74,36,808. 24 was due to it from the plaintiff under different heads as mentioned above, whereas the amount due to the plaintiff from the defendant was only Rs. 60,15,558. 50. After adjusting the said amounts against one another the defendant has to get from the plaintiff a sum of Rs. 14,21,249. 74 on which the defendant paid Court-fees of Rs. 16,726-00 under Section 20 of the A. P. Court-fees and Suits Valuation Act, 1956.

( 4 ) THE plaintiff filed a rejoinder contending that the alleged adjustment/set off/counter-claims pleaded by the defendant are wholly false and untenable and the same cannot be entertained or adjudicated without payment of court-fees on the entire amount of Rs. 74,36,808. 24 claimed in the written statement under various heads.

( 5 ) ON 31-8-1994, the office prepared a note stating that the total court-fees payable on the various claims made in the written statement is Rs. 16,352-00 whereas the defendant actually paid Rs. 16,726-00 which is more than the court-fees required to be paid and that the matter may, however, be heard on the Bench. After hearing both parties, the lower Court, by the impugned order dated 24-8-1995, held that the entire amount of Rs. 74,36,808. 24 claimed in the written statement is in the nature of a co

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