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1998 Supreme(Del) 25

High Court Of Delhi
SURENDER ARORA - Appellant
Versus
P.N.MEHTA - Respondent
Suit 1893 of 1994
Decided On : 01/13/1998

Advocates Appeared:
Amit Andley, R.K.GUPTA

Headnote:Court Fees Act, 1870 - Section 7(iv)(c) — Suit for specific performance — Valuation of relief — Arbitrary valuation by the plaintiff — Suit seeking permanent injunction restraining the other party from transferring the property under agreement to sell — Suit directed to be valued according to the value of property as mentioned in the agreement in question.

       Held:

       In the case in hand, the plaintiff cannot seek permanent injunction without decla? ration of his rights under the alleged agreement to sell, he has no right to seek permanent injunction restraining the defendant to transfer any of his right, title or interest under the Agreement dated 15th October, 1992 mentioned in prayer (a). In such circumstances, it is not possible to accept the proposition that the case is covered by Article 17(3) of Schedule II of the Court Fees Act. The matter is squarely covered by Section 7(iv)(c) for not only declaration to the effect that Agreement dated 15th October, 1992 executed between M/s. Inder Pratap Singh, has been sought, the consequential relief to give effect to that declaration is also sought for the plaintiff seeks permanent injunction by restraining the defendants from transferring any of their rights, title and interest under the agreement dated 15th October, 1992.

       In so far as the question of valuation of the relief of declaration is concerned, relief of declaration is sought on the basis of agreement, and the applicant wants to enforce his right under the agreement to sell dated 15th October, 1992 and as modified by Agreement to Sell dated 13th March, 1994. It indicates that the correct value of the sale consideration under the agreement in favor of the purchaser free from all encumbrances and defects of the title has been settled at Rs.4.84 crores which is payable by the purchaser, i.e. plaintiff and 1% of that amount i.e. 4.84 lakhs was paid through two cheques. The balance of Rs.4,79,16,000/- was payable by the plaintiff to the defendants. If a right is claimed in respect of a property worth Rs.4.84 crores, the valuation for the purpose of court fee could not, by any stretch of imagination, be Rs.220/- and it has to be valued at Rs.4.84 crores as mentionedin the plaint for the purpose of jurisdiction.

       Accordingly, the plaintiff is supposed to make good the deficiency on the value of Rs.4.80 crores under Section 7(iv)(c) of the Court Fees Act. It would be appropriate in such circumstances that the plaintiff should be given one months time to pay the court fee. In case he fails to pay the court fee within a period of one month, the plaint would be liable to be rejected under Order 7, Rule 11, CPC.

S. N. Kapoor, J.

( 1 ) HEARD parties Counsel on the points of court fee and the question of the rejection of the plaint in its present form at length.

( 2 ) IN this suit for declaration and injunction, the plaintiff seek the following reliefs:

(A) A decree for declaration may be passed in favour of the plaintiff and against the defendants to the effect that the agreement of sale dated 13/3/1994 between the plaintiff and the defendants regarding transfer of defendants right, title and interest under the agreement dated 15/10/1992 executed between them-M/s. Inder Paratap Singh HUF for the allotment of the 11th floor of the proposed multistoreyed building known as `narain Manzil ,23, Barakhamba Road, New Delhi subsists between the parties to this suit.

(B) A decree for permanent injunction may be granted in favour of the plaintiff and against the defendants to the effect that they have no right to transfer any of their right, title and interest in the agreement dated 15/10/1992 mentioned in prayer (a) above in favour of any person other than the plaintiff.

( 3 ) THE plaintiff claims that he is real estate agent and Mrs. Sumitra Chistion 15/10/1992 as trustee of M/s. Satazo trust applied to M/s. Inder Pratap singh HUF through plaintiff as an agent for allotment of the entire 11th floor approximately 8,000 sq ft. The builder agreed to sell entire 11th floor to M/s. satazo Trust at the rate of Rs. 3,850. 00 per sq. ft. An agreement to sell by Mr. Inder Pratap Singh on behalf of M/s. Inder paratap Singh HUF was signed in favour of Mrs. Sumitra Chisti. An allotment letter was also issued. Both these documents were witnessed by the plaintiff. On 18/12/1992 an appropriate authority under Section 269-UC of Income Tax Act by its order dated 18/12/1992 issued no objection to the transfer for a sum of Rs. 3,08,00,000. 00. On March 13,1994 an agreement to sell was executed between M/s. Satazo Trust through Mrs. Sumitra Chisti and the plaintiff as the purchaser for a sum of Rs. 4,84,00,000. 00 through two cheques dated 13/3/1994. No Objection Certificate was sought again from the appropriate authority under section 269-UC of Income Tax Act. On 18/5/1994 Appropriate Authority issued No Objection to the transfer. Accordingly sale transaction was to be completed within a period of six months by execution of the transfer deeds in favour of the plaintiff or his nominees. The prices shot up. The defendants published advertisement on July 15,1994 and one H. S. Sandhu visited the office of the plaintiff asking him to execute a cancellation deed and the notice dated 18/7/1994 was also received. As the cloud has been cast on the right of the plaintiff on the agreement to sell dated 13/3/1994 the suit for declaration for permanent injunction has been filed.

( 4 ) AFTER initially clearing the plaint for registering and listing the case, an office objection was raised that "value on relief of declaration both for jurisdiction and court fee ought to be same, and C/f ad valorem is to be paid thereon"

( 5 ) THE plaintiff moved an application for amendment of the plaint to convert this suit into a suit for specific performance. That application was rejected and appeal was filed. This appeal was also dismissed as infructuous since the application for amendment was withdrawn with liberty to plaintiff to file the suit for specific performance, separate suit has also been filed.

( 6 ) THE plaintiff claims that the plaint is adequately stamped for the suit is not for declaration with regard to any property. The property is not yet constructed. Suit is for declaration with regard to a contract entered into between the parties on 13/3/1994.

( 7 ) ON the other had, learned Counsel for the defendant submits that from the allegations made and the relief of injunction as made in prayer (b), from the relief of declaration as made in prayer (a) and thus consequential relief, since relief could be granted only in the event of plaintiff succeeding in his prayer for declara









































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