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1965 Supreme(Mad) 225

Madras High Court
RAMAMURTI
T.A.M.Subramania Chettiar - Appellant
Versus
K.M.Shanmugham - Respondent
Decided On : 07/27/1965

Advocates:
C. S. Swaminathan, for Petitioner; G. Ramanujam for the Govt. Pleader, for the State.

A plea for the value of improvements by the alienee in a suit for partition is not a counter claim and therefore, no court-fee is payable under S. 8 of the Madras Court-fees Act, 1955.

Headnote:

COURT FEES ACT, 1955 - SECTION 8 - COUNTER CLAIM - ESSENTIAL CONDITIONS - CLAIM FOR IMPROVEMENTS BY ALIENEE IN SUIT FOR PARTITION - NOT A COUNTER CLAIM - COURT FEES NOT PAYABLE.

Fact of the Case:

In a suit for partition and separate possession, the 5th defendant, an alienee, claimed a sum of Rs. 10,000 for improvements made to the suit property. The question arose whether the claim was liable to payment of court-fee as a written statement pleading a set off or a counter claim under S. 8 of the Madras Court-fees Act, 1955.

Finding of the Court:

The court held that the claim of the 5th defendant was not a plea of set off or a counter claim and therefore, no court-fee was payable under S. 8 of the Act.

Issues: Whether the claim of the 5th defendant for improvements was a plea of set off or a counter claim.

Ratio Decidendi: 1. A plea of set off is a right to plead a debt or a money claim due from the plaintiff in deduction or extinction of the plaintiff's claim. It is limited to money claims and is not available in a suit for injunction, specific performance or for a declaration. 2. A counter claim is a weapon of defence, enabling the defendant to enforce his right or claim against the plaintiff as effectively as an independent action of his own. It can be made in respect of any claim that could be the subject of an independent action, including claims for specific performance, injunctions, or declarations. 3. The essential condition for a counter claim is that the defendant should have an independent right to agitate the same in an action of his own. 4. A plea for the value of improvements by the alienee in a suit for partition is not a counter claim because the alienee could not have brought a separate suit against the plaintiff claiming the value of the improvements.

Final Decision: The revision petition was allowed, and the order of the learned Subordinate Judge directing the 5th defendant to pay court-fee was set aside.

ORDER :- This revision petition arises out of an order passed by the learned Subordinate Judge, Salem, directing the 5th defendant in the suit, O. S. 64 of 1963 to pay a sum of Rs. 750 as court-fee. The plaintiff filed a suit for partition and separate possession of his share in the suit properties. Defendants 1 to 4 who are members of the family are sailing together. The first defendant had executed a sale deed in favour of the 5th defendant which is attacked on the ground that it is not an out and out sale, but was executed merely to serve as security for a loan transaction. The fifth defendant, alienee, besides contending that the sale deed executed in his favour by the first defendant is a genuine transaction, claimed a sum of Rs. 10,000 by way of moneys spent by him bona fide in the improvement of the suit property, and that if the sale deed should be held to be not binding upon the plaintiff and defendants 2 to 4 the amount spent by the fifth defendant for improvements should be held to be binding upon the members of the family. The question for decision is whether the claim of the fifth defendant is liable to payment of court-fee as a written statement pleading a set off or a counter claim under S. 8 of the Madras Court-fees Act, 1955, hereinafter referred to as the Act. The learned Subordinate Judge while holding that the fifth defendant is liable to pay court-fee under S. 8 of the Act, has relied upon and followed a recent unreported decision of Venkatadri J. in C. R. P. 1216 of 1960 (Mad). Hence this revision petition.

2. It must be mentioned at the outset that the only provision having a bearing on the above question is S. 8 of the Act and ifthe pleas raised by the defendant do not amount to a plea of set off or a counter-claim there is no other provision by which he could be called upon to pay court-fee. In other words, the State should bring the case within the four corners of the section. Vide Jogarao v. Venkatarao, AIR 1949 Mad 471. It should also be borne in mind that a right to make a counter claim is a statutory one and a counter claim is not admissible in a case which is admittedly not within Or. VIII, rule 6 C. P. C. Vide Laxmidas v. Nanabhai, AIR 1964 SC 11 for the legal incidents of the nature of a counter claim. Unless the rules of procedure of the particular court or courts provide for counter claims, the defendant has no unqualified right to set up a plea which is essentially in the nature of a counter claim.

3. The plea of the 5th defendant is obviously not a plea of set off. It is only money claim that may give rise to a plea of set off. The right to set off is the right to plead a debt or a money claim due from the plaintiff in deduction or extinction of the plaintiff's claim. It was unknown to common law and the right of a set off was later recognised by statutes and apart from the rights at law conferred by statute the defendant is also permitted to raise a plea of equitable set off but whether it is a legal or equitable set off such a plea could exist only where both the plaintiff's and the defendant's claims are for recovery of money. Vide 34 Halsbury's Laws of England, Simonds Edn., page 396 paras 673 and 674. The essential condition, namely, a suit being one for recovery of money, is not satisfied in the instant case, and therefore, obviously no plea of set off can arise.

4. The question, therefore, arises whether the written statement could be construed as giving rise to a plea of counter claim. Like set-off, a counter claim is available to a defendant only when the rules of procedure of the courts in which the plaintiff brings his action allow a counter claim to be set up. In certain important aspects a plea of counter claim is different and distinguishable from a set off in its application and in its effect. While set off is limited to money claims there is no such limitation in the case of counter claims. Any claim in respect of which the defendant could bring an independent separate action












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