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2025 Supreme(Kar) 60

IN THE HIGH COURT OF KARNATAKA AT BENGALURU 
VIJAYKUMAR A. PATIL, J.
K. Madhav Rao, S/o. P. Krishna Rao – Petitioner
Versus
D. Banumaiah's Educational Institution And Educational Trust rep. By Its Administrator and Ors. – Respondents
Writ Petition No.5572 of 2020 (GM-CPC) C/W Writ Petition No.5533 of 2020 (GM-CPC)
Decided On : 07-07-2025

Advocates Appeared:
For the Petitioner: Sri. Sridar A.G., Adv.
For the Respondents: Sri. Sumanth M.S., Adv., for Sri. P.N. Manmohan, Adv.

The court upheld the trial court's ruling affirming that court fees must be assessed based on annual rent as specified in the lease agreement, rather than the market value of improvements made by the lessee.

Headnote:(A) Karnataka Court Fees and Suits Valuation Act, 1958 - Section 41(1) - Writ petitions challenging trial court orders related to court fee assessment on ejectment suit - Petitioner contended that respondent must pay court fee based on market value of superstructure, said to be Rs.6.00 Crores - Trial Court rejected claim, asserting correct assessment based on annual rent of Rs.66,000/- (Paras 3 to 11).

(B) Court Fees - The correctness of the court fee payment and valuation of the property was contested, particularly the application of market value versus annual rent in determining court fees. (Paras 7, 8, 10 and 11).

Facts of the case:
The petitioner operated a commercial structure on leased property, asserting entitlement to an increased court fee due to alterations made, while respondents highlighted the original lease agreement stipulating minimal rent and reversion of the property at termination.

Findings of Court:
The trial court's findings regarding court fee assessments were upheld; there was no error or perversity in the trial court's reasoning (Paras 10, 11).

Issues: Main issues included proper court fee valuation and application of lease agreement clauses in dispute over court fee responsibilities.

Ratio Decidendi: The court found that clauses of the lease indicated that the petitioner was bound to return the property with improvements without a claim for those improvements, thereby upholding the trial court’s valuation based on rent paid.

Result: Both petitions are rejected.

Table of Content
1. petitioners seek declaration on court orders. (Para 1 , 2)
2. petitioner argues against insufficient court fees. (Para 3 , 4 , 5)
3. court reviews lease terms and court fee issues. (Para 6 , 7 , 8 , 9 , 10 , 11)
4. both petitions dismissed as meritless. (Para 12)

ORDER :

(VIJAYKUMAR A. PATIL, J.)

W.P.No.5573/2020 is filed seeking the following reliefs :

"(i) declare that the order dated 18.01.2020 passed on I.A.No.XII in O.S.No.322/2016 on the file of the III Addl. Senior Civil Judge, Mysuru, produced at Annexure-J;

(ii) ALLOW this writ petition with costs."

2. W.P.No.5572/2020 is filed seeking the following reliefs:

"(i) declare that the order dated 18.01.2020 passed on I.A.No.XIII in O.S.No.322/2016 on the file of the III Addl. Senior Civil Judge, Mysuru, produced at Annexure-J;

(ii) ALLOW this writ petition with costs."

3. Sri.Sridhar A.G., learned counsel for the petitioner submits that respondent No.1-plaintiff has filed a suit against the petitioner and other respondents for judgment and decree of ejectment and damages. The petitioner has filed a detailed written statement denying the contents of the plaint and specifically contended that the Court fee paid by the respondent No.1 is insufficient and the said issue is required to be dealt as a preliminary issue. It is submitted that the petitioner filed an application in IA No.12 to consider issue No.4 as preliminary issue before recording the evidence. However, the trial Court without appreciating the fact that the premises, which was given on lease to the petitioner, was a vacant premises and thereafter the petitioner has put up a structure, hence, the respondent No.1 is liable to pay the Court fee on the market value of the said structure, the trial Court by incorrect finding rejected the application. It is further submitted that as per the lease agreement the property has been improved by putting up the structure and now that the respondent No.1 is seeking to take back the superstructure, hence, he is liable to pay the Court fee based on the market value and the present market value of the superstructure is Rs.6.00 Crores. Hence, he seeks to allow the petition.

4. It is also submitted that in W.P.No.5572/2020, the petitioner is assailing the order of the trial Court, wherein the petitioner's application seeking appointment of a valuer for the purpose of ascertaining the market value of the suit schedule property is rejected.

5. Per contra, Sri.Sumanth M.S., learned counsel for Sri.P.N.Manmohan, learned counsel for respondent No.1, submits that respondent No.1 is the owner of the premises and lease deed was entered in the year 1980 for a period of 35 years and the clauses of the lease deed indicate that petitioner was required to pay a meagre rent as he was required to develop the property, make use of the same and hand over the same without claiming any right over the same. Hence, considering the same, they have assessed the rent paid to the premises and paid the Court fee, which has been rightly considered by the trial Court in rejecting the application filed by the petitioner. Hence, the question of interfering with the said order would not arise. Hence, he seeks to dismiss the petitions.

6. I have heard the learned counsel for the petitioner, learned counsel for respondent No.1 and perused the material available on record. I have given my anxious consideration to the submissions advanced on both sides.

7. The respondent No.1 has filed a suit in O.S.No.322/2016 against the petitioner and other respondents for the relief of judgment and decree of ejectment from the suit schedule property and further damages of Rs.7,50,000/-. The petitioner has filed a detailed written statement, wherein at paragraph No.5, it is averred that the petitioner has constructed commercial building / complex in the suit schedule property at their own costs and expenses and now the respondent No.1-plaintiff is seeking to take back the possession of the same; hence, respondent No.1-plaintif

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