IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ARCHANA PURI, J.
Tarsem Lal – Petitioner
Versus
Kuldeep Kumar & Ors. – Respondents
CR NO.2288 of 2022 (O&M)
Decided On : 19-12-2023
Based on the provided legal document, the key points are as follows:
The case involves a revision petition challenging an order that directed the plaintiff to pay the appropriate Court fee based on the amount claimed in a suit for damages (!) (!) .
The plaintiff, Tarsem Lal, filed a suit claiming damages of Rs.20 lakh due to physical and mental harassment, but paid only Rs.50 as Court fee, which was deemed undervalued (!) (!) .
The defendants filed an application under Order 7, Rule 11 CPC, seeking rejection of the plaint for non-payment of ad valorem Court fee, arguing that the suit's claim was undervalued and that the Court fee must correspond to the amount claimed (!) .
The Court held that in suits for damages or recovery of money, the Court fee must be paid according to the amount claimed, as mandated by the relevant statutes (!) (!) .
The Court found that the suit was for a specified amount of damages and, therefore, the ad valorem Court fee was required to be paid on that amount (!) .
The Court reaffirmed the principle that the Court fee should match the amount claimed in money suits, supporting this with applicable legal provisions (!) (!) .
The order directing the plaintiff to pay the proper Court fee was upheld, and the revision petition was dismissed as meritless (!) .
The overall decision emphasizes that the Court fee must be paid in accordance with the claim amount in suits for damages, and failure to do so can lead to rejection of the plaint (!) (!) .
Please let me know if you need further analysis or assistance related to this case.
JUDGMENT
Archana Puri, J.
Through the present revision petition filed under Article 227 of the Constitution of India, the petitioner has challenged the order dated 19.04.2022 passed by learned Court below, whereby, an application under Order 7, Rule 11 CPC, filed for seeking rejection of plaint, in the event of non-payment of ad valorem Court fee, has been allowed.
2. In pursuance to the notice issued, the respondents have made appearance through counsel.
3. Learned counsel for the parties heard.
4. For the convenience of the discussion, the parties are referred to as plaintiff and defendants, as making appearance before learned lower Court.
5. The essential facts to be taken into consideration for the disposal of the present case are as herein, given:-
That, initially, plaintiff-Tarsem Lal had filed a suit for seeking recovery of Rs.20 lakh, as damages, on account of physical and mental harassment, agony/defamation of the plaintiff.
6. The defendants, after making appearance, had filed an application under Order 7, Rule 11 CPC, thereby, directing the plaintiff to pay ad valorem Court fee, failing which, sought rejection of the plaint. In the said application, it has been submitted that the plaintiff had filed the suit for recovery of Rs.20 lakh, along with interest, but he has affixed Court fee of Rs.50/- only. The relief claimed in the suit, is undervalued and as such, the plaintiff, as per Court Fee Act, is required to pay the Court fee, upon the relief claimed, though, it may be a tentative relief. Thus, the plaintiff be directed to make good the deficiency in the Court fee, failing which, his plaint be rejected.
7. In reply to the application, preliminary objection was taken, thereby, disputing the maintainability of the application, just to delay the proceedings. On merits, it was averred that suit is for tentative amount, which is yet to be ascertained by the Court, while deciding the present suit, at the time of final adjudication of the case. It is further averred that in case, the plaintiff is able to make out the case for damages, he is ready to pay the ad valorem Court fee. As such, a prayer was made for dismissal of the application..
8. After hearing learned counsel for the parties, the aforesaid application was allowed.
9. The payment of the extent of Court fee is regulated by the Court Fees Act, 1870. Section 7 of the ibid Act, prescribes the procedure to compute the amount of fee payable in a suit. Where the suit is for money, including suits for damages or compensation or arrears of maintenance, of annuities, or of any other sums payable periodically, then Section 7(i) lays down, as to how the amount of Court fee payable, is required to be calculated. Thus, it is evident that whenever the suit is for money, the Court fee is payable according to the amount claimed.
10. On the plain reading of the plaint, it is apparent that it is a suit for seeking damages of specified amount and therefore, as per Section 7(i) of the ibid Act, the ad valorem Court fee, is payable according to the amount claimed.
11. In this regard reference is made to the decision rendered by the Hon'ble Apex Court in State of Punjab and others v. Dev Brat Sharma, 2022 (2) RCR (Civil) 464, wherein it has been categorically observed that in a suit for recovery as damages, ad valorem Court fee, would be payable on the amount of damages claimed.
12. In the light of the aforesaid, the impugned order, calling upon the plaintiff-petitioner to file the requisite Court fee, as per claim, so sought by him, calls for no further interference. Hence, the revision petition sans merit and is hereby dismissed.
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.
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.
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.
Ad valorem court fee is payable on the amount claimed in a money suit, irrespective of the final determination by the Court.
In suits for damages, court fees must be calculated on the amount claimed as per Section 7 of the Court Fee Act, and the limitation period for malicious prosecution claims starts upon final judgment ....
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....
Ad valorem court fees must be paid on liquidated damages claimed, as clarified under the Court Fees Act, contradicting the trial court's erroneous dismissal of the plaint rejecting application.
The duty of the Civil Court and first appellate Court to decide the amount of Court-fees payable and the power of the first appellate Court to adjudicate the issue of Court-fees in the appeal.
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