1974 Supreme(Kar) 269
Karnataka High Court
T.GANGADHARASWAMY - Appellant
Versus
SETH DOWLATRAM MOHANDAS - Respondent
Decided On : 12-12-74
C.R.P. : 2462 of 1973
PRANESH RAO, R.J.SUNDER KUMAR, V.K.GOTVINDARAJULU, VENKATACHALAPATHY
In a suit for specific performance based on a contract of sale, the court fee has to be computed on the amount of consideration mentioned in the contract.
Headnote:
Court Fee - Specific Performance of Contract - S. 40(a) of the Act - S. 42(a) of the Madras Court Fees and Suits Valuation Act - The court discussed the interpretation of S. 40(a) of the Act and S. 42(a) of the Madras Court Fees and Suits Valuation Act in relation to the payment of court fee in a suit for specific performance of a contract. The court emphasized that in a suit for specific performance based on a contract of sale, the court fee has to be computed on the amount of consideration mentioned in the contract.
Fact of the Case:
The plaintiff filed a suit for specific performance of an agreement for the conveyance of properties. The plaintiff argued that he should only pay court fee for the conveyance of the second item of the properties mentioned in the agreement.
Finding of the Court:
The court found that the suit was essentially one for specific performance of a contract, and the court fee payable was on the amount of consideration mentioned in the contract.
Issues: The main issue was the interpretation of the court fee payable in a suit for specific performance based on a contract of sale.
Ratio Decidendi: The court held that in a suit for specific performance based on a contract of sale, the court fee has to be computed on the amount of consideration mentioned in the contract.
Final Decision: The revision petition was dismissed, and the plaintiff was asked to pay court fee on the amount of consideration mentioned in the contract.
( 2 ) A few facts may be necessary for the disposal of the same. The plaintiff mesa the suit- out or which was petition , for spection perror inance or properties to the plaintiff for aconciderationof Rs. 35000 by an arengment between thendefendent 1conveveda. item 1 and 3 in flawer or the plaintiff and item 4 in flaver of his mother and field to onvey the other item nemely item 2 the paintiff brought the shout for speine performence of the agrement between him and first defendent and sought the reffer or convenence of the second item. He paid court fee on Rs. 4000 on the basis that the reperesented the amount due by him to deferent.
( 3 ) MR. V. K. Govindarajulu, the; learned Counsel for the plaintiff says that conveyance is sought only in respect of the second item of the properties mentioned in the agreement and he is therefore not bound to pay Court Fee, leviable, on a claim for specific performance of the agreement. His argument is that as the entire: contract is not sought to be performed, the; suit cannot be deemed to be one for specific performance of 'the whole contract but only for performance of conveyance of the second item. He relied upon a decision in R. S. Jhavar v. Thanikachala Grainani (1966) 2 Madlj. 38. In that decision 3,42 (a) of the Madras Court Fees and Suits Valuation act, which is similar to S. 40 (a) of the Act was being considered. The learned Judge distinguished an earlier decision of the Madras High Court rendered by Venkataramana Rao, J. in Gudia Duliabho Sahu v. Cinni adinarayana, AIR. 1937 Mad. 831 and said :" The intention of Sec. 42 (a) of the Madras Court Fees and Suits valuation Act (XIV of 1955) seems to be that' where a party who, has entered into a contract to purchase certain properties is able to ge,t conveyance of a, portion of the, properties only, he can file a suit for specific performance of the unperformed portion of the contract ond can pay Court Fie on it. He is liable to pay Court Fee only on the, value, of the unperformed portion of the contract of which he seeks performed and is not liable to pay Court Fee, on the entire value of the properties covered by the original contract. "the learned Judge appears to have taken this view on the assumption that the word 'computed' occurring in S. 42 (a) of the Madras Act had been introduced for the first time and such a word was not found in S. 7 (x) of the) Court Fees Act (VII of 1870 ). Venkataramana Rao J. in Duliabho sahu's case (2), while considering S. 7 (x) of the Court Fees Act (VII of 1870) held :" There can be no question that so far as a conveyance is sought in favqur of the plaintiff in respect of defendant 2's interest, the suit is essentially one for specific periormance of a contract and Court Fee will have to bet levied under S. 7, Cl (x) Court Fees Act. . . . . The fact that certain properties have been sold by mutual. arrangement will not alter the nature of the claim which is essentially one tor specific performance of contract of sale which is implied in the said arrangement. How, I understand the relief claimed is this: ' T'he plaintiff requests the; Court to give effect to the arrangement which he entered into, but desires thai in effecting the conveyance only the properties described in the schedule should be conveyed and possession in respect thereof should be given. As the Court will in any event have to declare the original arrangement entered into and only on that basis should give the relief to the plaintiff, the suit will have to be valued on the consideration mentioned therein. In a suit for specific performance, the view has always been taken by this Court that there, is no question of primary and secondary relief and both the execution of the conveyance and delivery of possession are essential reliefs. Further, without getting a conveyance it is not possible to get possession. "in my opinion, the leaned Judge in Jhavar's case (1) obviously misre