IN THE HIGH COURT OF MADHYA PRADESH, INDORE BENCH
VIVEK RUSIA, J.
Badrilal (Deceased) Through L.RS Nirmala and others - Appellants
Versus
Akash & another - Respondents
Miscellaneous Petition No. 5417 of 2018
Decided On : 25-02-2019
Court Fees Act - Valuation and Payment of Court-fees - Section 107 of C.P.C. - Order 7 Rule 11 of C.P.C. - Section 12 of Court Fees Act - [DECLARATION AND PERMANENT INJUNCTION] - [Section 107 of C.P.C., Order 7 Rule 11 of C.P.C., Section 12 of Court Fees Act] - The court discussed the issue of valuation and payment of Court-fees in the context of the plaintiff's suit for declaration and permanent injunction. The court emphasized the duty of the Civil Court and first appellate Court to decide the amount of Court-fees payable and highlighted the provisions of Section 12 of the Court Fees Act, which require determination of the fee payable at the time of filing the suit and appeal. The court also emphasized that the issue of Court-fees is always liable to be decided as a preliminary issue and that the first appellate Court has the power to adjudicate the issue of Court-fees in the appeal.
Fact of the Case:
The plaintiffs filed a suit for declaration and permanent injunction challenging a sale-deed and seeking relief against the defendant. The trial Court initially directed the plaintiffs to pay ad valorem Court-fees, which was challenged in a writ petition. The matter was remitted back to the trial Court, which then decided the issue of Court-fees after taking evidence and held the plaintiffs liable to pay the ad valorem Court-fees. The first appellate Court also directed the plaintiffs to pay the Court-fees as per the trial Court's decree.
Finding of the Court:
The court found that the trial Court and first appellate Court had rightly held the plaintiffs liable to pay the ad valorem Court-fees, and emphasized that the issue of Court-fees is always liable to be decided as a preliminary issue. The court also highlighted 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.
Issues: The issues revolved around the valuation and payment of Court-fees in the plaintiff's suit for declaration and permanent injunction, and the obligation of the first appellate Court to decide the issue of Court-fees in the appeal.
Ratio Decidendi: The court emphasized the duty of the Civil Court and first appellate Court to decide the amount of Court-fees payable, highlighted the provisions of Section 12 of the Court Fees Act, and emphasized that the issue of Court-fees is always liable to be decided as a preliminary issue. The court also emphasized the power of the first appellate Court to adjudicate the issue of Court-fees in the appeal.
Final Decision: The petition was dismissed by the court, and the plaintiffs were held liable to pay the ad valorem Court-fees as directed by the trial Court and first appellate Court.
Vivek Rusia, J.
1. The petitioners have filed the present petition being aggrieved by order dated 9.10.2018 passed by learned first appellate Court whereby application filed under Order 7 Rule 11 read with Section 107 of C.P.C. has been allowed by directing the petitioner/plaintiff to pay the ad valorem Court fees.
2. Facts of the case, in short, are as under:
(i) The present petitioners being the plaintiffs filed the suit for declaration and permanent injunction in respect of land bearing Survey No.805/3 area 0.55 Hect. and Survey No.806/3 ara 0.38 Hect. of Village Dablahurd, Tehsil Tarana, District Ujjain (hereinafter, for short, "the suit land"). The suit land was initially owned by father of the plaintiffs viz. Late Shri Badrilal, who in his life time sold it vide registered sale-deed dated 22.7.2009. After the death of Badrilal, plaintiffs filed the suit challenging the aforesaid sale-deed executed in favour of respondent No.1/defendant No.1 and also sought the relief of permanent injunction.
(ii) On the basis of pleadings, learned trial Court initially framed five issues for adjudication.
(iii) Respondent No.1/defendant No.1 filed an application under Order 7 rule 11 of C.P.C. seeking rejection of the plaint on the ground that the plaintiffs did not properly value the suit and did not pay the ad valorem Court-fees on the basis of value of suit land in the sale-deed. Said application was allowed by the trial Court vide order dated 27.9.2014, against which, plaintiff filed W.P. No.8104/2014 before this Court. This Court vide order dated 1.3.2016 allowed the said writ petition and the matter was remitted back to the trial Court to decide the issue of Court-fees along with other issues at the time of final hearing of the suit on merit.
(iv) On the basis of aforesaid order of this Court, learned trial Court has framed additional issue No.6 in respect of valuation of suit and payment of Court-fees, which is reproduced as below:-
Øekad okn Á'u fu"d"kZ
6- D;k oknh }kjk okn dk mfpr ewY;kadu dj i;kZIr U;k; 'kqYd vnk fd;k x;k gSA dafMdk 28 ds vuqlkj fu"d"kZ fn;k x;kA
(v) Vide judgment and decree dated 5.10.2016, learned trial Court has dismissed the suit on merit and also held that the plaintiff is liable to value the suit at Rs. 6,44,520/- and to pay the Court-fees @ 12%. The decree drawn by the learned trial Court is reproduced below:-
^^oknhx.k dks oknxzLr Hkwfe ds laca/k esa ,d yk[k :i;s vo'ks"k foØ; ewY; ÁkIr ugha gqvk gSA ;g Áekf.kr djus esa oknhx.k vlQy jgs gSA ,slh fLFkfr esa foØ; ys[k 1v@422 fnukafdr 22-07-2009 oknhx.k ij ca/kudkjh gSA Áfroknh Øekad 1 oknxzLr Hkwfe ls oknhx.k dks csn[ky djus fy;s Á;kljr ugha gSA oknhx.k ds }kjk okn dk ewY;kadu rks mfpr fd;k x;k gS ijUrq U;k; 'kqYd mfpr :i ls vnk ugha fd;k x;k gSA oknhx.k okn ewY;kadu vuqlkj vFkkZr 6]45]520@& :i;s ij 12-00 Áfr'kr dh nj ls U;k; 'kqYd nsus ds fy;s nk;h gSA vr% mDr jkf'k oknhx.k rRdky vnk djsa vU;Fkk mDr jkf'k oknhx.k ls fofo/k nhokuh Ádj.k dk;e dj olwy dh tkosaA rn~uqlkj oknhx.k vius nkos dks Áekf.kr djus esa vlQy jgs gSA vr% oknhx.k ds }kjk ÁLrqr okn fujLr fd;k tkrk gSA**
(vi) Being aggrieved by the aforesaid judgment and decree, plaintiffs have filed first appeal u/s. 96 of the C.P.C. In the pending appeal, defendant No.1 filed an application under Order 7 Rule 11 read with Section 107 of C.P.C. alleging that the plaintiff/appellant has neither paid the court-fees in the suit nor in the first appeal despite judgment and decree of the learned trial Court, hence the appeal is liable to be dismissed.
(vii) Learned first appellate Court vide order dated 9.10.2018 has allowed the application directing the plaintiff to pay the Court-fees as directed by the learned trial Court and also to value the first appeal and to pay the ad valorem Court-fees.
3. Being aggrieved by the aforesaid order, the plaintiff has preferred the present petition before this Court.
4. Vide order dated 25.01.2019, this Court has issued the notice to the respondents on the following question of
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.
To permit payment of deficit court fees for recovering enhanced compensation after a lapse of almost six years under its inherent jurisdiction would encourage practice of not paying court fee in the ....
The issue of proper court fees being paid is essentially an issue between the plaintiff and the State, and the defendant cannot be termed as an 'aggrieved party' to invoke the revisional jurisdiction....
A suit which has not been properly valued and proper court fee has not been paid, can rejected in terms of Order 7 Rule 11 of CPC.
Point of law: Court Fee - It is evident that the Court has to find cut that the claim is under valued. Then at least require the plaintiff to correct the valuation and fix a time to pay deficit Court....
The main legal point established in the judgment is that the correct payment of court fee in a suit must be determined in accordance with settled legal principles and the specific provisions of the C....
It is the settled position that the relief of injunction under Section 26(c) of the Act has to be valued on the basis of the advantage sought to be derived or the loss to be averted by the plaintiff.
The court clarified that a non-executant must pay ad valorem court fees for declaring a sale deed void, capped at Rs.1,50,000 under the Madhya Pradesh Amendment.
The valuation of the suit property and the court fee to be paid are matters of trial and the defendants shall be at liberty to lead evidence at that stage. While deciding an application under Order V....
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