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2019 Supreme(P&H) 3391

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH
VIKAS BAHL, J.
Kiran - Petitioner
Versus
Parmod and another - Respondent
Civil Revision No.2791 of 2019
Decided On : 07-04-2026

Advocate Appeared:
For the Petitioner:Mr. Deepak Girotra and Mr. Chetan Sharma, Advocates
For the Respondent:Mr. Parveen Kaushik, Advocate

An executant of a deed seeking its cancellation must pay ad valorem court fee based on the consideration amount stated in the instrument. The power of judicial superintendence is limited and should not be exercised to interfere with subordinate court orders unless necessary to maintain judicial discipline.

Headnote:(A) Code of Civil Procedure, 1908 - Order VII Rule 11 - Constitution of India - Article 227 - Court Fees Act - Ad valorem court fee - Suit for cancellation of registered mortgage deed - Executant of a deed seeking annulment is required to pay ad valorem court fee on the consideration stated in the deed - Delay in filing application for rejection of plaint is not a ground for dismissal - High Court's power of superintendence under Article 227 is to be exercised with judicial discipline and is not to be used as a court of appeal. (Paras 2, 3, 4, 5)

Facts of the case:
The petitioner filed a suit for declaration and permanent injunction seeking to set aside a registered mortgage deed. The trial court allowed an application under Order VII Rule 11 of the Code of Civil Procedure, directing the petitioner to pay ad valorem court fee on the mortgage amount, as the petitioner was an executant of the deed. The petitioner challenged this order in a revision petition, citing delay in the filing of the application and alleging coercion in the execution of the deed.

Findings of Court:
The court held that since the petitioner was a party to the mortgage deed, the requirement to pay ad valorem court fee on the consideration amount is mandatory. The court further observed that there is no statutory timeline for filing an application for rejection of a plaint, and the allegation of coercion is a matter for trial. The court emphasized that its power under Article 227 is limited and should not be used to interfere with orders of subordinate courts unless there is a clear case of perversity or illegality.

Issues: Whether the petitioner, as an executant of a mortgage deed, is liable to pay ad valorem court fee for seeking its cancellation, and whether the delay in filing an application for rejection of the plaint warrants its dismissal.

Ratio Decidendi: An executant of a deed seeking its cancellation must pay ad valorem court fee on the consideration stated in the deed. The power of superintendence under Article 227 is not an appellate power and should be exercised sparingly to ensure judicial discipline.

Result: Revision petition dismissed.

Table of Content
1. factual context regarding mortgage deed challenges and trial court rulings. (Para 1 , 2)
2. executants of deeds must pay ad valorem court fees for cancellation. (Para 3 , 4)
3. high court jurisdiction under article 227 is limited and sparingly used. (Para 5)
4. revision petition dismissed with extension for deposit of court fees. (Para 6 , 7 , 8)

JUDGMENT :

VIKAS BAHL, J. (ORAL)

1. This is a civil revision petition under Article 227 of the Constitution of India for setting aside the impugned order dated 02.04.2019 whereby the application under Order VII Rule 11 CPC filed by the respondents has been allowed.

2. The plaintiff has filed the present revision petition challenging the order dated 02.04.2019 vide which the plaintiff has been directed to pay ad valorem Court fee on the mortgage amount. A perusal of the impugned order would show that it has been noticed by the trial Court that a mortgage deed No.3670 dated 08.08.2014 was registered at the office of Sub Registrar, Bahadurgarh and the plaintiff had mortgaged the suit land as detailed in para 1 of the plaint to the defendants for mortgage amount of Rs. 20,75,000/- and thereafter had filed a suit for declaration and permanent injunction to get the said registered mortgage deed set aside and cancelled. It was further observed that since the plaintiff had not affixed the Court fee, thus, an application was filed by the respondents-defendants for rejection of the plaint under Order VII Rule 11 CPC. After hearing the arguments of the parties concerned, the trial Court observed that the said mortgage deed was a registered document and was executed by plaintiff-Kiran in favour of defendants Parmod and Dharmender in lieu of the mortgage amount of Rs.20,75000/- and a challenge was made to the said mortgage deed and since the plaintiff was a party to the said mortgage deed, the plaintiff was liable to pay Court fee on the mortgage amount i.e. on the amount of Rs. 20,75,000/-. In support of the said observations, reliance was placed upon the judgment of the Hon’ble Supreme Court in the case of Suhrid Singh @ Sardool Singh Versus Randhir Singh , 2010 (12) SCC 112. Accordingly, the application was allowed and the plaintiff was directed to pay ad valorem Court fee on the mortgage amount.

3. The Hon’ble Supreme Court in the abovesaid case has held as under:

“6. Where the executant of a deed wants it to be annulled, he has to seek cancellation of the deed. But if a non-executant seeks annulment of a deed, he has to seek a declaration that the deed is invalid, or non-est, or illegal or that it is not binding on him. The difference between a prayer for cancellation and declaration in regard to a deed of transfer/conveyance, can be brought out by the following illustration relating to A' and 'B' two brothers. 'A' executes a sale deed in favour of 'C'. Subsequently 'A' wants to avoid the sale. 'A' has to sue for cancellation of the deed. On the other hand, if `B', who is not the executant of the deed, wants to avoid it, he has to sue for a declaration that the deed executed by 'A' is invalid/void and non- est/ illegal and he is not bound by it. In essence both may be suing to have the deed set aside or declared as non-binding. But the form is different and court fee is also different. If 'A', the executant of the deed, seeks cancellation of the deed, he has to pay ad-valorem court fee on the consideration stated in the sale deed. If B who is a non-executant, is in possession and sues for a declaration that the deed is null or void and does not bind him or his share, he has to merely pay a fixed court fee of Rs.19.50 under Article 17(iii) of Second Schedule of the Act. But if 'B', a non-executant, is not in possession, and he seeks not only a declaration that the sale deed is invalid, but also the consequential relief of possession, he has to pay an ad-valorem court fee as provided under Section 7(iv)(c) of the Act. Section 7(iv)(c) provides that in suits for a declaratory decree

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