IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Anil Kshetarpal, J.
Sunita Jain - Petitioner - Appellant
Versus
M/s P.L.Steel Industries and Others - Respondents - Respondent
Civil Revision No. 2400 of 2023
Decided On : 20-07-2023
court fee - ad valorem court fee - interpretation of Section 7 of the Court Fees Act, 1870
Fact of the Case:
The plaintiff filed a suit for recovery of damages tentatively assessed at ?20,00,000 along with interest. The trial Court directed the plaintiff to pay ad valorem court fee on the quantified amount of damages.
Finding of the Court:
The Court analyzed the judgments passed in similar cases and held that ad valorem court fee is payable on the amount claimed in the suit, even if the assessment is tentative. The liability to pay the court fee is not dependent upon the final determination by the Court.
Issues: Interpretation of ad valorem court fee requirement on tentative assessment of damages in a money suit.
Ratio Decidendi: The liability to pay ad valorem court fee is not dependent upon the final determination by the Court. Once the plaintiff tentatively assesses the amount sought to be recovered in a money suit, ad valorem court fee is payable on the amount claimed.
Final Decision: The revision petition was dismissed, finding no merits in the plaintiff's argument.
ANIL KSHETARPAL, J.
1. The challenge is to the correctness of the order passed by the trial Court directing the plaintiff to pay ad valorem court fee on the quantified amount of ?20,00,000/- which has been assessed as damages (tentatively) by the plaintiff.
2. Some facts are required to be noticed to comprehend the controversy involved in the present revision petition. The plaintiff (petitioner herein) filed a suit for grant of decree for recovery of ?20,00,000/- tentatively, as damages along with the pendente lite and future interest @ 18% per annum. He valued the suit for the purpose of jurisdiction at ? 500/- tentatively upon which a court fee of ?50/- was affixed. Upon the filing of an application by the defendant No.4 under Order VII Rule 11 of the Code of Civil Procedure, 1908 (hereinafter referred to as “the CPC”), the Court found that the plaintiff is required to pay ad valorem court fee on the amount of compensation claimed in terms of the judgment passed by the Supreme court in State of Punjab and Others v. Dev Brat Sharma 2022(2) RCR (Civil) 464.
3. Heard the learned counsel representing the parties at length and with their able assistance, perused the paper book.
4. The learned counsel representing the petitioner submits that a coordinate bench in Ramandeep Singh v. Harinderpal Kaur (Civil Revision No. 6118 of 2022, decided on 22.12.2022) = 2023(2) L.A.R. 541 = (2022) Law Today Live Doc. Id. 17571 has explained the judgment passed in Dev Brat Sharma’s case (supra) and in identical facts, held that once the tentative amount of damages has been claimed, the plaintiff can be asked to affix the ad valorem court fee only on the determination of the particular amount of damages payable to her.
5. On the other hand, the learned counsel representing the respondents submits that in Dev Brat Sharma’s case (supra) also an approximate amount was claimed. He also relies upon the judgments passed by the coordinate Benches in S.R.Laddhar v. Mohan Nagpal and Others (Civil Revision No. 2326 of 2017, decided on 31.10.2022), Risal Singh v. Vishav Nath and Another (Civil Revision No. 6809 of 2018, decided on 12.10.2022), Gurdyal Singh alias Gurdial Singh and Others v. Mahender Singh and Others (Civil Revision No. 2047 of 2022, decided on 23.05.2022) and Advocate Radhey Shyam v. State of Haryana and Others (Civil Misc. No. 6164-CII of 2023 In/And Civil Revision No. 2599 of 2021, decided on 12.04.2023) to contend that once the amount sought in the suit has been assessed even though tentatively, the ad valorem court fee as the amount claimed in the suit is liable to be affixed.
6. This Court has considered the submissions and carefully analysed the judgments passed by the Courts.
7. In para 2(vi) of the judgment passed in Dev Brat Sharma’s case (supra), the plaintiff claimed that he has spent approximately ?2,00,000/- on litigation. As such, he claimed damages of approximately ?20,00,000/- including the litigation expenses. In para 21 of the aforesaid judgment, the Court noticed the various categories of suits specified in Section 7 of the Court Fees Act, 1870 (hereinafter referred to as “the 1870 Act”). The Court held that once the suit in question was a money suit for compensation and damages falling under Clause (i) of Section 7 of the 1870 Act, ad valorem court fee would be payable on the amount claimed.
8. It is evident that while deciding the Ramandeep Singh’s case (supra), the Hon’ble Judge overlooked that fact. In fact, the attention of the Bench was not drawn to this part of the judgment passed in Dev Brat Sharma’s case (supra).
9. In any case, whenever the plaintiff files a money suit for recovery either as damages or otherwise his assessment is approximate or tentative which is subject to the final determination by the Court. The liability to pay the court fee at the time of filing of the suit is not dependent upon the final determination by the Court. The court fee is payable on the amount claimed in the suit. Once the plaintiff has t
Ad valorem court fee is payable on the amount claimed in a money suit, irrespective of the final determination by the Court.
Ad valorem Court fee must be assessed on the quantified damages claimed in a suit, as established in State of Punjab and others v. Dev Brat Sharma.
The valuation of damages in a suit is tentative when the exact value of the relief cannot be ascertained, and the court fee is a matter between the plaintiff and the state, to be paid as assessed aft....
In suits for damages, the Court fee must be paid according to the amount claimed, as established by the Court Fees Act, 1870 and supported by precedent.
The main legal point established in the judgment is that the nature of the relief sought in a suit determines the applicable court fee, and if the suit is in fact for recovery of a specified amount o....
In suits for money, including suits for damages, the ad-valorem court fee payable shall be computed according to the amount claimed, as per Section 7 (i) of the Court Fees Act, 1870.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.