Karnataka High Court
A.R.Shambulinga - Appellant
Versus
A.C.Lalitha - Respondent
Decided On : 01-17-06
Writ Petition : 42211 of 2003
Karnataka Court Fees and Suits Valuation Act, 1958 -Section 38 -Fee payable on an application filed for setting aside award passed under Arbitration and Conciliation Act - Suit under the provision -Whether corers Arbitration Suit -Court fee payable therefor. See, High Court of Karnataka Arbitration (Proceedings Before the Court) Rules, 2001 -Rules 4(b) & 6.
( 1 ) THE short question that arises for consideration of this Court in this writ petition is that, if an application is filed under Section 34 of the Arbitration and Conciliation Act 1996, whether the petitioners are required to pay Court fee either under Section 38 of the Karnataka Court fee and suits Valuation Act, 1958 or under Article 11 (n) of Schedule 11 of Karnataka Court Fee and, suits Valuation Act.
( 2 ) 4th respondent was appointed as arbitrator and he passed an award in favour of the respondents 1 to 3 herein. Aggrieved by the same, petitioner filed an application under Section 34 of the Arbitration and Conciliation Act, 1996 to set aside the award passed by the 4th respondent, which application has been treated as Arbitration suit 4/2002 by the Civil Court bangalore. Though it is an application filed under Section 34 of he Arbitration and Conciliation act, the Court treated the same as Arbitration suit, pursuant to High Court of Karnataka arbitration (Proceedings before the Courts) Rules, 2001. At the time of filing the petition, petitioners have paid a fixed Court fee of Rs. 100/- by invoking Article 11 (n) (2) of Schedule II of karnataka Court Fee and Suits Valuation Act.
( 3 ) RESPONDENTS 1 to 3 raised an objection before the Trial Court contending that the Court fee paid by the petitioners is not sufficient and they are required to pay Court fee under Section 38 of the Karnataka Court Fee and Suits Valuation Act, 1958, since the application filed by the petitioners has been treated as a suit by the Trial Court.
( 4 ) THE Court below after hearing the learned Counsel for the parties has directed the petitioners herein to file a fresh valuation slip and to pay Court fee in accordance with' Section 38 of the karnataka Court Fee and Suits Valuation Act, 1958. This order is called in question in this, Writ petition.
( 5 ) I have heard the Counsel for the parties.
( 6 ) ACCORDING to, the learned counsel for the petitioners, though the Court has registered the petition filed by the petitioners under Section 34 of the Act as Arbitration Suit, in view of specific provision under the Karnataka Court Fee and Suits Valuation Act, the petitioners are required to pay only a fixed Court fee and not the advalorem Court fee as required under Section 38 of the karnataka Court Fee and Suits Valuation Act, 1958.
( 7 ) ACCORDING to the learned Counsel for the respondents 1 to 3, though the petitioners had filed an application under Section 34 of the Arbitration and Conciliation Act, since the same has been converted as a suit for cancellation of the award of the arbitrator, the prayer of the petitioners falls within the ambit of Section 38 of the Karnataka Court Fee and Suits Valuation Act. Therefore, he justifies the order passed by the Trial Court and requests this Court to dismiss the writ Petition.
( 8 ) HAVING heard the learned Counsel for the parties, this Court has to examine the relevant provision of the Karnataka Court Fee and Suits Valuation Act, 1958. Article 11 (n) of the II schedule reads hereunder-"application to set aside an award under the Arbitration Act, 1940- 1) If the value of the subject matter of the award does not exceed Rs. 5000/- 2) If such value exceeds Rs. 5,000/- similarly, Section 38 of the Karnataka Court Fee and Suits Valuation Act, 1958 reads hereunder- 38. (1) in a suit for cancellation of a decree for money or other property having a money value, or other document which purports or operates to create, declared assign, limit or extinguish, whether mi present or in future, any right, title or interest in money, movable or immovable property, fee shall be computed on the value of the subject-matter of the suit, and such value shall be deemed to be- if the whole decree or other document is sought to be cancelled the amount or value of the property for which the decree was passed or other document was executed; if a part of the decree or other document is sought to be cancelled, such par
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