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2014 Supreme(Raj) 1143

RAJASTHAN HIGH COURT
Arun Bhansali, J.
Jameela (Smt.) - Appellant
Versus
Man Singh - Respondent
S.B. Civil Second Appeal No. 38 of 2014.
Decided On : 14-03-2014

Advocates:
For the Appellant:Gopal Acharya, Advocate.

Court fees for a suit for specific performance of an exchange agreement should be computed on the market value of the property sought to be taken in exchange, not merely on the consideration mentioned in the agreement.

Headnote:

SPECIFIC PERFORMANCE - EXCHANGE AGREEMENT - VALUATION OF SUIT - COURT FEES - SECTION 40(D) OF THE RAJASTHAN COURT FEES AND SUIT VALUATION ACT, 1961 - COURT FEES FOR SPECIFIC PERFORMANCE OF EXCHANGE AGREEMENT TO BE COMPUTED ON MARKET VALUE OF PROPERTY SOUGHT TO BE TAKEN IN EXCHANGE.

Fact of the Case:

Plaintiff filed a suit for specific performance of an agreement dated 13.10.2011, alleging that the defendant agreed to transfer two properties in exchange for the plaintiff's property, with an advance payment of Rs. 6,000/- and the balance of Rs. 19,000/- paid on 15.11.2011. The trial court directed the plaintiff to properly value the suit, which the plaintiff failed to do, leading to the rejection of the plaint under Order 7, Rule 11 (b) C.P.C. The first appellate court upheld the trial court's decision.

Finding of the Court:

The agreement was not an exchange agreement as defined under Section 118 of the Transfer of Property Act, 1882, as it provided for the execution of sale deeds in favor of any person as directed by either party. The court fees for a suit for specific performance of an exchange agreement under Section 40(d) of the Rajasthan Court Fees and Suit Valuation Act, 1961, should be computed on the market value of the property sought to be taken in exchange, not merely on the consideration mentioned in the agreement.

Issues: 1. Whether the agreement dated 13.10.2011 was an exchange agreement as defined under Section 118 of the Transfer of Property Act, 1882? 2. Whether the court fees for a suit for specific performance of an exchange agreement should be computed on the market value of the property sought to be taken in exchange or on the consideration mentioned in the agreement?

Ratio Decidendi: 1. The agreement was not an exchange agreement as defined under Section 118 of the Transfer of Property Act, 1882, as it provided for the execution of sale deeds in favor of any person as directed by either party. 2. The court fees for a suit for specific performance of an exchange agreement under Section 40(d) of the Rajasthan Court Fees and Suit Valuation Act, 1961, should be computed on the market value of the property sought to be taken in exchange, not merely on the consideration mentioned in the agreement.

Final Decision: The appeal was dismissed, upholding the trial court's and first appellate court's decisions to reject the plaint due to the plaintiff's failure to properly value the suit.

JUDGMENT

1. -This appeal is directed against judgment and decree dated 10.01.2014 passed by Additional District Judge No.3, Jodhpur, whereby, the judgment and decree dated 28.05.2013 passed by Civil Judge (Junior Division), Jodhpur Metropolitan has been upheld.

2. The facts in brief may be noticed thus : the plaintiff filed a suit seeking specific performance of contract dated 13.10.2011 on 26.12.2011 with the averments that by the agreement entered into between the parties for exchange of property, whereby, it was agreed between the parties that the defendant would transfer a house situated near Meratiyo Silavaton Ki Masjid, Jodhpur and Plot No.220 situated at B.J.S. Colony, Jodhpur against property owned by plaintiff being Plot No.856, Sardarpura, Chopasani Road; on payment of consideration of Rs. 25,000/-; an advance of Rs. 6,000/- was paid, balance amount of Rs. 19,000/- was paid on 15.11.2011, however, despite paying the sum of Rs. 19,000/- the document has not been registered and the possession has not been handed over and, therefore, a decree was sought for specific performance of the agreement dated 13.10.2011 for transfer of the properties i.e. house situated near Meratiyo Silavaton Ki Masjid, Jodhpur and Plot No.220 situated at B.J.S. Colony, Jodhpur.

3. A written statement was filed by the defendant and the averments made in the plaint were accepted; however, the trial court by its order dated 20.07.2012 directed the plaintiff to file the market value of the suit property and by order dated 28.07.2012 it came to the conclusion that the valuation of the suit was not proper and, therefore, directed the plaintiff to properly value the suit and produce the same thereafter.

4. The order dated 28.07.2012 was not complied with and it was stated that the compliance of order was not required.

5. The trial court by order dated 28.05.2013 came to the conclusion that suit was not property valued by the plaintiff and despite opportunity to properly value the suit, the plaintiff failed to comply with the said order and, therefore, rejected the plaint under Order 7, Rule 11 (b) C.P.C.

6. Feeling aggrieved, the appellant filed first appeal, wherein, the first appellate court also came to the same conclusion that the suit was not properly valued and dismissed the first appeal.

7. It was submitted by learned counsel for the appellant that the suit was valued under Section 40(d) of the Rajasthan Court Fees and Suit Valuation Act, 1961 ('the Act of 1961') and, therefore, the courts below were not justified in insisting for proper valuation of the suit and dismissing the same under Order 7, Rule 11 (b) C.P.C.

8. I have considered the submissions made by learned counsel for the appellant.

9. The relevant portion of the agreement dated 13.10.2011 reads thus:-

"bdjkjukekbdjkjukek ,d ge vkt fnukad 13-10-2011 dks ceqdek tks/kiqj 'kgj esa vius fof/kd vf/kdkj ds gd (VkbZVy) dh LFkkoj lEifRr ds fofu;e ewY; fodz; dh lafonk ds djkj dk nLrkost rgjhj o rdehy dj nsrs gSa oks ;g gS fd %&1- ekuflag iq= Jh v[ksflag] tkfr pkSgku jktiwr] fuoklh nsgyh gky fBdkuk ukbZ;ksa dh cxsph ds ihNs iwtk jksVh gkml] pkSikluh jksM+] tks/kiqj (jkt0) ftls vkxs ;gka bdjkjukek esa izFke i{k ds uke ls lEcksf/kr fd;k tk;sxkA),oa2- Jherh tehyk iRuh Jh v[rj] fuoklh IykWV la[;k 856&,] ljnkjiqjk] pkSikluh jksM+] tks/kiqj jkt0 ftls ;gka vkxs bdjkjukek esa f}rh; i{k ls lEcksf/kr fd;k tk;sxkA 1- fd izFke i{k ds fof/kd vf/kdkj ds gd VkbZVy dh [kjhnlqnk ,oa dCtklqnk LFkkoj izFke lEifRr ,d edku okds esM+rh flykoVku dh efLtn ds ikl] tks/kiqj esa fLFkr gS] ftlds lEcU/k esa gd dh nLrkost (Document of Title) izFke i{k us f}rh; i{k dks cryk, tks izFke i{k ds dCts esa gS] ftlds igpku gsrq lhek,sa mRrj esa Jherh vkeuk iRuh ejgwe vCnqy xQqj dk edku] nf{k.k esa esM+rh flykoV efLtn ls lqukjksa dk ckl esa tkus okyh ldM+h xyh] iwoZ esa jkLrk rFkk if'pe esa jgokl gS rFkk f}rh; lEifRr IykWaV la[;k 220 okds ch0ts0,l0 dkWyksuh] tks/kiqj esa fLFkr gS] ftlds igpku gsrq lhek,sa mRrj esa jkLrk] nf{k.k esa Jh gqd














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