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1994 Supreme(Del) 699

High Court Of Delhi
AUTOMATIC ELECTRIC LIMITED - Appellant
Versus
R.K.DHAWAN - Respondent
Suit 2136 of 1994
Decided On : 10/17/1994

Advocates Appeared:
HEMANT SINGH, S.P.AGARWAL

The plaintiff cannot whimsically choose a ridiculously low figure for filing the suit and artificially give pecuniary jurisdiction to the court.

Headnote:

COURT FEES - VALUATION OF SUIT - RENDITION OF ACCOUNTS - JURISDICTION - SUIT FOR INJUNCTION, PASSING OFF AND RENDITION OF ACCOUNTS - VALUATION OF RELIEF FOR RENDITION OF ACCOUNTS AT RS. 200.00 AND COURT FEES OF RS. 20.00 PAID - VALUATION FOR JURISDICTION AT RS. 5,50,000.00 - HELD, VALUATION FOR JURISDICTION IS WITHOUT ANY OBJECTIVE STANDARD AND THE PLAINTIFF IS DIRECTED TO MAKE GOOD THE DEFICIENCY IN COURT FEES ON THE AMOUNT OF RS. 5,50,000.00 WITHIN A PERIOD OF ONE WEEK FAILING WHICH THE PLAINT SHALL BE REJECTED.

Fact of the Case:

The plaintiff filed a suit for permanent injunction restraining infringement, passing off, rendition of accounts of profits, etc. The plaintiff claimed to be a company registered under the Companies Act and had adopted the trademark "dimmerstat" in 1945. The plaintiff alleged that the defendants were using the trademark "dimmer DOT" which was deceptively similar to the plaintiff's trademark. The plaintiff valued the suit for court fees and jurisdiction at Rs. 800.00 and Rs. 5,50,000.00, respectively.

Finding of the Court:

The court held that the plaintiff could not whimsically choose a ridiculously low figure for filing the suit and artificially give pecuniary jurisdiction to the court. The court found that the valuation for purposes of jurisdiction was without any objective standard and directed the plaintiff to make good the deficiency in court fees on the amount of Rs. 5,50,000.00 within a period of one week, failing which the plaint would be rejected.

Issues: 1. Whether the plaintiff could whimsically choose a ridiculously low figure for filing the suit and artificially give pecuniary jurisdiction to the court? 2. Whether the valuation for purposes of jurisdiction was without any objective standard?

Ratio Decidendi: 1. The court held that the plaintiff could not whimsically choose a ridiculously low figure for filing the suit and artificially give pecuniary jurisdiction to the court. The court relied on the Supreme Court decision in M/s. Commercial Aviation and Travel Co. (supra) which held that the plaintiff cannot whimsically choose a ridiculous figure for filing the suit most arbitrarily where there are positive materials and/or objective standards of valuation of the relief appearing on the face of the plaint. 2. The court found that the valuation for purposes of jurisdiction was without any objective standard. The court noted that the plaintiff had valued the relief for rendition of accounts at Rs. 200.00 and paid a court fee of Rs. 20.00 thereon, but had valued the same relief for purposes of jurisdiction at Rs. 5,50,000.00. The court held that this valuation was arbitrary and whimsical and did not reflect any objective standard.

Final Decision: The court directed the plaintiff to make good the deficiency in court fees on the amount of Rs. 5,50,000.00 within a period of one week, failing which the plaint would be rejected.

Mr. Vijender Jain, J.

( 1 ) AT the outset this Court took the objection that properan adequate Court fees has not been paid and the plaint is deficient. This is a suit forpermanent injunction restraining infringement, passing off, rendition of accounts ofprofits etc. The plaintiff claims to be a Company registered under the Companiesact. According to the case of the plaintiff in 1945the plaintiff adopted the trade mark dimmerstat in relation to their goods. Plaintiff has incurred substantialexpenses in sales promotion and advertising compaign pertaining to the goodsbearing the trade mark dimmerstat and therefore it has been averred that thetrademark of the plaintiff has earned reputation and good will. In paragraph 3of the plaint the plaintiff has given the turnover of sales of its product which in 1983-84 was approximately Rs. 10. 49 crores and in 1993-94 Rs. 31 crores. The suit has beenfiled by the plaintiff and it has been averred that defendants 1 and 2 are also engagedin the business of manufacturing and selling same kind of goods as has beenmanufactured and sold by the plaintiff. It has been averred that the defendants areusings the trade mark dimmer DOT which is deceptively similar with the trademark of the plaintiff. A legal notice was issued by the plaintiff on 7/4/1994 to stop thewrongful user of the trade mark. On the basis of these averments plaintiff has valuedthe suit for Court fees and jurisdiction in the following manner :-

" (I) for a decre for permanent injunction restraining infringement of trademark, this relief is valued for purposes of Court fees and jurisdiction atrs. 200. 00 and Court fees of Rs. 20. 00 is affixed thereon; (ii) for a decree for permanent injunction restraining passing off, this reliefis valued for puposes of Court fees and jurisdiction at Rs. 200. 00 andcourt fees of Rs. 20. 00is affixed thereon; (iii) for a decree for delivery of infringing goods, this relief is valued forpurposes of Court fees and jurisdiction at Rs. 200. 00and Court fees of Rs. 20. 00 is affixed thereon; (iv) for an order for rendition of accounts of profits earned by the defendants, this relief is valued for purposes of Court fees at Rs. 200. 00 andcourt fees of Rs. 20. 00is affixed theredon;this relief is valued for purpose of jurisdiction under the provisions of Order7 Rule 2 Civil Procedure Code read with Section 7 of Court-fees Act, 1870 and Section 9 of the Suitvaluation Act, 1887 alongwith Rules 3 and 4 of the Punjab and Haryana High Courtrules at Rs. 5,50,000. 00 as the said amount could be found due on rendition ofaccounts of profits by the defendants. The plaintiff undertakes to pay suchadditional Court fees as may be directed by this Court on the ascertainment of theamount so found due. Thus the suit is valued for the purpose of jurisdiction atrs. 5,50,000. 00and forthe purpose of court fees at Rs. 800. 00 and Court fees of Rs. 80. 00 is affixed thereon. At the end of paragraph 14 of the plaint the plaintiff has averred that the reliefis valued for purposes of jurisdiction under the provisions of Order 7 Rule 2 CPCread with Sec. 7 of the Court-fees Act, 1870 and Sec. 9 of the Suits Valuation Act, 1887along with Rules 3 and 4 of the Punjab and Haryana High Court Rules at Rs. 5. 50,000. 00 as the said amount could be found due on rendition of accounts of profitsby the defendants. It has been further averred by the plaintiff that the plaintiffundertakes to pay such Additional Court-fees as may be directed by this Court onthe ascertainment of the amount so found due. On the basis of this aforesaidvaluation as contained in paragraph 14 of the plaint the plaintiff has valued the suitfor purposes of jurisdiction at Rs. 5,50,000. 00 and for purposes of Court fees at Rs. 800. 00 and Court fees of Rs. 80. 00 has been paid on the plaint.

( 2 ). Mr. Aggarwal learned Counsel for the plaintiff has argued that in view ofthe amendment in the Punjab and Haryana High Court Rules and in view of Rules 3and 4 of the said a








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