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2023 Supreme(Bom) 1525

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SANDEEP V. MARNE, J.
Saraswatibai Bishwambarlal Charity Trust, Thr. Sudarshan Malpani & Ors. - Appellants
Versus
Gopal Traders Pvt. Ltd. - Respondent
Appeal From Order No. 1152 of 2022 With Interim Application No. 30423 of 2022
Decided On : 09-11-2023

Advocates Appeared:
For the Appellant :Mr. G.S. Godbole, Senior Advocate a/w. Mr. Roshan Sawant i/by. Mr. Kaustubh Patil.
For the Respondent: Mr. Sanjay Jain a/w. Mr. Nakul Jain, Mr. Viraj Bansod i/by. Mr. Tushar Goradia.

The valuation of a suit seeking to declare a deed of additional right of way as void must be determined under Section 6(iv)(ha) of the Maharashtra Court Fees Act, placing it beyond the jurisdiction of the City Civil Court.

Headnote:(A) Code of Civil Procedure, 1908 - Order 7 Rule 10 - Maharashtra Court Fees Act, 1959 - Section 6(iv)(j) and Section 6(iv)(ha) - Suit for declaration against the Deed of Additional Right of Way - The City Civil Court ruled that the suit valuation must be determined under Section 6(iv)(ha) as it seeks avoidance of a deed affecting immovable property, thus falling beyond its pecuniary jurisdiction. (Paras 12, 18, 34)

(B) Jurisdiction - The valuation of the suit must reflect the nature of relief sought, and the City Civil Court correctly found that the suit, involving a challenge to a deed for additional right of way, necessitates valuation at Rs.1,95,00,000/-, thereby exceeding its jurisdiction. (Paras 32, 34)

(C) Easements - The court noted that easementary rights, while not transferable separately from the dominant heritage, can be monetized when granted for valuable consideration, impacting the valuation of related legal actions. (Paras 26, 28)

Judgement Key Points

The judgment primarily addresses the issue of proper valuation of a suit for the purpose of jurisdiction and court fees. It clarifies that when a suit involves challenging or avoiding a deed related to immovable property, especially one executed for valuable consideration, it must be valued under the specific provisions that deal with the avoidance of sale or transfer of property. This includes suits seeking declarations that such deeds are illegal or not binding, which are to be valued based on the value of the property or the consideration involved. The Court emphasizes that the valuation should reflect the nature of the relief sought, particularly when the suit involves a declaration of rights or avoidance of transactions like sales or agreements affecting immovable property.

It further explains that easements, while rights attached to property, do not constitute ownership or transfer of ownership in the land itself, and therefore suits related to easements are to be valued differently, often under provisions specific to declarations of rights or easements. The Court also affirms that the valuation accepted by relevant authorities, such as stamp duty assessments, can be used for determining jurisdiction if no other material suggests a different valuation.

Overall, the judgment underscores the importance of correctly classifying the nature of the suit and applying the appropriate valuation provisions to determine jurisdiction, and it supports the approach of accepting valuation based on the value assigned in relevant legal documents or assessments, provided it aligns with the relief sought.


JUDGMENT :

THE CHALLENGE

1. This Appeal is filed challenging the order dated 12 October 2022 passed by the learned Judge, City Civil and Sessions Court, Greater Mumbai allowing Notice of Motion No. 1797/2021 filed by the Defendant under Order 7 Rule 10 of the Code of Civil Procedure, 1908 (the Code) returning the Plaint to be presented before this Court. The Plaint is returned essentially on the ground that the same does not fall within the pecuniary jurisdiction of the City Civil Court.

FACTS :

2. The Appellant-Plaintiff is a Trust and Plaintiff Nos.1 to 6 are its Trustees. The Trust apparently owns land bearing C.T.S. No. 2/583, Jagmohandas Marg, Nepean Sea Road, Mumbai-400026 (suit land). Defendant owns a Plot adjoining the suit land and the Defendant has been granted easementary right to approach his land from the suit land owned by Plaintiffs. Plaintiff got aggrieved by the act of the Defendant in commencing construction on the Trust property and accordingly instituted S. C. Suit No. 112 of 2021 before the City Civil Court seeking inter alia prohibitory injunction against the Defendant to restrain it from raising any construction over the suit property. In its Written Statement, Defendant relied upon the Deed of Additional Right of Way dated 4 November 2020 executed by Mr. Sunil Damani in his capacity as the Trustee of the Trust, under which the Defendant claims that the Trust granted additional right of way of 3.74 mtrs width on the western portion passing through the Trust property and leading to the Defendant’s property on consideration of Rs.7,50,000/- annually to the Trust. Plaintiffs therefore amended the Plaint, inter-alia to include challenge to the Deed of Additional Right of Way dated 4 November 2020.

3. After amendment of the Plaint, Defendant filed Notice of Motion No. 1797/2021 under the provisions of Order 7 Rule 10 of the Code for return of the Plaint on the ground that the Deed of Additional Right of Way dated 4 November 2020 is valuated at Rs.1,95,00,000/-, on which stamp duty of Rs.5,85,000/- is paid. Defendant therefore contended that the suit ought to have been valued at Rs.1,95,00,000/- and therefore would fall beyond the pecuniary jurisdiction of the City Civil Court, which is restricted at Rs.1 crore. Plaintiffs resisted the Motion by filing Affidavit in Reply inter-alia contending that the document is not executed by the Trust and therefore not binding on it. That the suit has rightly been valued under Clause 6(iv)(j) of the Maharashtra Court Fees Act, 1959 (Court Fees Act). After hearing both sides, the City Civil Court proceeded to pass order dated 12 October 2022 and allowed Notice of Motion No. 1797/2021 directing return of the Plaint filed in S. C. Suit No. 112/2021 to the Plaintiffs to be presented before this Court. Plaintiffs are aggrieved by the order dated 12 October 2022 and have filed the present Appeal.

4. Mr. Godbole, the learned senior advocate would appear on behalf of the Appellants/Plaintiffs and submit that the Suit is only for a declaration and is therefore correctly valued under Section 6(iv)(j) of the Court Fees Act. He would submit that the valuation done for the purpose of payment of stamp duty under the provisions of Maharashtra Stamp Act, 1958 is totally irrelevant for the purpose of valuation of the suit under the provisions of the Suits Valuation Act, 1887 or under the Court Fees Act. That the case of the Plaintiffs is that the Deed of Additional Right of Way has been unauthorisedly executed by Shri. Sunil Damani who does not have any authority to execute any document on behalf of the Trust and the Trust is merely seeking a declaration that the said document is not binding on it. That under such circumstances, the suit has correctly been valued under Section 6(iv)(j) of the Court Fees Act.

5. Mr. Godbole would further contend that an easement does not create any right in th

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