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2012 Supreme(Raj) 1005

RAJASTHAN HIGH COURT (JAIPUR)
BELA M TRIVEDI, J.
Shakti Sut Udhyog thru. its Partners
vs.
Additional District Judge, Ajmer & Ors
S. B. Civil Writ Petition No. 1602 of 2005
Decided On : 04/10/2012

Court fees to be paid on the market value of the property for declaration and possession and on the value of the property for which the document was executed for cancellation of document.

Headnote:

COURT FEES - VALUATION OF SUIT - SECTIONS 24 AND 38 OF THE RAJASTHAN COURT FEES AND SUIT VALUATION ACT, 1961 - COURT FEES TO BE PAID ON THE MARKET VALUE OF THE PROPERTY FOR DECLARATION AND POSSESSION - COURT FEES TO BE PAID ON THE VALUE OF THE PROPERTY FOR WHICH THE DOCUMENT WAS EXECUTED FOR CANCELLATION OF DOCUMENT.

Fact of the Case:

Petitioners-plaintiffs filed a suit seeking cancellation of sale of property and possession of the said property. They valued the suit for cancellation of sale at Rs. 3,12,000/- and for possession at Rs. 10 lacs. They filed an application under Order XXXIII of CPC seeking permission to sue as indigent persons. The trial court dismissed their application. Petitioners challenged this order.

Finding of the Court:

The court held that the petitioners-plaintiffs were required to pay court fees on the market value of the property as per Section 24(a) of the Rajasthan Court Fees and Suit Valuation Act, 1961. Even if the suit was governed by Section 38 of the Act, they would be liable to pay court fees on the value of the property for which the document was executed.

Issues: Whether the petitioners-plaintiffs were liable to pay court fees on the market value of the property for declaration and possession.

Ratio Decidendi: The court relied on Sections 24 and 38 of the Rajasthan Court Fees and Suit Valuation Act, 1961 to hold that the petitioners-plaintiffs were required to pay court fees on the market value of the property for declaration and possession. The court also held that even if the suit was governed by Section 38 of the Act, they would be liable to pay court fees on the value of the property for which the document was executed.

Final Decision: The court allowed the petition and set aside the trial court's order. The petitioners-plaintiffs were permitted to deposit court fees on the basis of valuation of the suit to the extent of Rs. 3,12,000/- subject to the condition that they shall pay the deficit court-fees, if any, if directed by the trial court at the time of final hearing of the suit.

Judgement Key Points

Key Points: - The petitioners must pay court-fees on the market value of the property for declaration and possession as per Section 24(a) of the Rajasthan Court Fees and Suit Valuation Act, 1961. (!) - Even if the suit is governed by Section 38, petitioners would be liable to pay court-fees on the value of the property for which the document was executed (cancellation of document). (!) - The suit valuation for the purpose of court-fees is on the market value of the suit property (Rs. 3,12,000 sale consideration) rather than the bifurcated values claimed for cancellation and possession. (!) - The court allowed the petition and set aside the trial court’s order, permitting deposit of court-fees on the basis of the market value (Rs. 3,12,000) subject to deficit payment if directed at final hearing. (!) - The petition stands allowed; the petitioners are permitted to proceed with the suit on payment of court-fees calculated on the market value of Rs. 3,12,000, with a provision to pay any deficit as directed by the trial court. (!)

What is the appropriate basis for court-fees payment under Rajasthan Court Fees and Suit Valuation Act, 1961 for a suit seeking cancellation of sale and possession?

What is the court's ruling on whether court-fees must be paid on the market value of the property for declaration and possession, or on the value of the property for which the document was executed (cancellation of document)?

What is the consequence for the petitioners if they are liable to pay higher court-fees at final hearing, and what relief did the court grant?


ORDER :

The petitioners-original plaintiffs have filed the present petition challenging the order dt. 27-2-2005 passed by the Additional District Judge (Fast Track No. 2), Ajmer, Camp Beawar, (hereinafter referred to as the trial court) in Civil Suit No. 89/2003 (10/1998).

2. The short facts giving rise to the present petition are that the petitioners-plaintiffs have filed suit against the respondents-defendants seeking cancellation of the sale of the property made by the defendants No. 1 to 4 in favour of defendants No. 7 & 8 on 1-3-1993 and for seeking possession of the said property. In the said suit, the petitioners-plaintiffs have valued the suit to the extent of Rs. 13,12,000/-, giving bifurcation to the effect that the valuation of the suit for cancellation of sale was Rs. 3,12,000/- and valuation of suit for possession was Rs. 10 lacs. The petitioners-plaintiffs had also filed an application under Order XXXIII of CPC seeking permission of the Court to sue them as indigent person. The present respondent No. 9 also filed an application under Order XXXIII, Rules 5 & 6 for rejecting the suit on non-payment of the requisite court-fees. The petitioners-plaintiffs thereupon submitted an application under Section 149 read with S.151 CPC praying inter alia, that the plaintiffs be permitted to proceed further with the suit on payment of court-fees to the extent of Rs. 15,725/-, calculated on the basis of sale price at Rs. 3,12,000/- + 800/-. The trial Court dismissed the said application of the petitioners-plaintiffs by the impugned order. Feeling aggrieved by the said order, the present petition has been filed.

3. The Mr. Rajendra Prasad, learned counsel for the petitioners-plaintiffs has drawn attention of the Court to the provisions contained under the Rajasthan Court Fees and Suit Valuation Act, 1961 (hereinafter referred to as the said Act), more particularly, to Sections 24 and 38 of the said Act and submitted that the petitioners-plaintiffs were liable to pay the court-fees on the market value of the suit property, when the prayer was made for declaration and for possession, as per Section 24, and also when the prayer was made for cancellation of the document as per Section 38 of the said Act. He also submitted that it was mistake on the part of the petitioners-plaintiffs to make valuation of their suit for two prayers separately namely for declaration and for possession. He also submitted that the petitioners-plaintiffs would pay the deficit court-fees, if the trial Court at the time of final hearing of the suit comes to the conclusion that the petitioners-plaintiffs are liable to pay the court-fees at the higher market value.

4. However, Mr. V. S. Yadav, learned counsel appearing for respondents No. 2 to 5, has submitted that even as per the valuation made by the petitioners-plaintiffs in the plaint, the petitioners-plaintiffs would be liable to pay court-fees on Rs. 13,12,000/- and the trial Court has rightly dismissed the application of the petitioners-plaintiffs.

5. In the instant case, it appears that the petitioners-plaintiffs have valued their suit for declaration and possession at Rs. 13,12,000/- by stating inter alia that the suit was valued at Rs. 3,12,000/- for cancellation of sale and was valued at Rs. 10 lacs for possession. Since the petitioners-plaintiffs had alleged that they did not have sufficient means to pay the court-fees, they had filed an application under Order XXXIII for permitting them to sue as indigent persons. However, subsequently, they submitted another application to the effect that the market value of the suit property, being only Rs. 3,12,000/-, they were ready to make payment of the court-fees on the said market value. However, the said application has not been granted by the trial Court.

6. In the opinion of this Court, since the petitioners-plaintiffs have sought prayer for declaration and possession, the requisite court-fees, to be paid by the petitioners-plaintiffs, would be on the market



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