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2023 Supreme(Online)(Bom) 3022

HIGH COURT OF BOMBAY
SANDEEP V. MARNE, J
Saraswatibai Bishwambarlal Charity Trust, thr. Sudarshan Malpani and Ors. – Appellant
Versus
Gopal Traders Pvt. Ltd. – Respondent
CIVIL APPELLATE JURISDICTION APPEAL FROM ORDER NO. 1152 OF 2022 WITH INTERIM APPLICATION NO. 30423 OF 2022



Advocates:
For the Appellants/Petitioners:Mr. G.S. Godbole, Senior Advocate, Mr. Roshan Sawant, Mr. Kaustubh Patil
For the Respondents: Mr. Sanjay Jain, Mr. Nakul Jain, Mr. Viraj Bansod, Mr. Tushar Goradia

The valuation for suits involving the challenge to a deed of easement must consider the inherent rights associated with the land, falling under specific provisions of the Court Fees Act, determining pecuniary jurisdiction. Value assessed must reflect the contractual implications on the property involved.

Headnote:(A) Code of Civil Procedure, 1908 - Order 7 Rule 10; Maharashtra Court Fees Act, 1959 - Section 6(iv)(j), Section 6(iv)(ha), Section 6(v) - Appellants challenging the order of City Civil Court returning the Plaint for lack of pecuniary jurisdiction - Suit involved a challenge to a Deed of Additional Right of Way dated 4 November 2020 executed between the parties, with valuation set at Rs. 1,95,00,000/- - City Civil Court found the valuation beyond jurisdiction, as it exceeded Rs. 1 crore limit. (Para 1, 3-4)

(B) Court Fees - The valuation of suit for declaration of non-binding nature of the Deed of Additional Right of Way must be under Section 6(iv)(ha), not Section 6(iv)(j) - Appellants argue that valuation for the Deed is irrelevant to the suit’s proper valuation. (Para 4-18)

(C) Easement Rights - The Court elaborated on the nature of easementary rights and their classification as a bundle of rights in land, explaining that rights can be monetized and valued accordingly in legal contexts. (Para 19-30)

Table of Content
1. challenge to court order based on jurisdiction. (Para 1 , 2 , 3)
2. plaintiffs' arguments on proper valuation under court fees act. (Para 4 , 5)
3. defendant's arguments regarding valuation and easement rights. (Para 6 , 7)
4. dispute over proper valuation of the suit based on various legal principles. (Para 8 , 9)
5. clarification of valuation methods under court fees act. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16)
6. distinction between avoidance of contract and declaration of rights. (Para 17 , 18 , 19 , 20)
7. general legal principles on easement rights. (Para 21 , 22 , 23 , 24 , 25)
8. court's analysis on easement transfer and monetary value. (Para 26 , 27 , 29 , 30 , 31 , 32)
9. final judgment and dismissal of appeal. (Para 33 , 34)
JUDGMENT :

T HE C HALLENGE 1. This Appeal is filed challenging the order dated 12 October 2022 passed by the learned Judge, City Civil and Sessions Court, Greater Mumbai allowing Notice of Motion No. 1797/2021 filed by the Defendant under Order 7 Rule 10 of the Code of Civil Procedure , 1908 (the Code) returning the Plaint to be presented before this Court. The Plaint is returned essentially on the ground that the same does not fall within the pecuniary jurisdiction of the City Civil Court.

F ACTS :

2. The Appellant-Plaintiff is a Trust and Plaintiff Nos.1 to 6 are its Trustees. The Trust apparently owns land bearing C.T.S. No. 2/583, Jagmohandas Marg, Nepean Sea Road, Mumbai-400026 (suit land). Defendant owns a Plot adjoining the suit land and the Defendant has been granted easementary right to approach his land from the suit land owned by Plaintiffs. Plaintiff got aggrieved by the act of the Defendant in commencing construction on the Trust property and accordingly instituted S. C. Suit No. 112 of 2021 before the City Civil Court seeking inter alia prohibitory injunction against the Defendant to restrain it from raising any construction over the suit property. In its Written Statement, Defendant relied upon the Deed of Additional Right of Way dated 4 November 2020 executed by Mr. Sunil Damani in his capacity as the Trustee of the Trust, under which the Defendant claims that the Trust granted additional right of way of 3.74 mtrs width on the western portion passing through the Trust property and leading to the Defendant’s property on consideration of Rs. 7,50,000/- annually to the Trust. Plaintiffs therefore amended the Plaint, inter-alia to include challenge to the Deed of Additional Right of Way dated 4 November 2020.

3. After amendment of the Plaint, Defendant filed Notice of Motion No. 1797/2021 under the provisions of Order 7 Rule 10 of the Code for return of the Plaint on the ground that the Deed of Additional Right of Way dated 4 November 2020 is valuated at Rs.1,95,00,000/-, on which stamp duty of Rs.5,85,000/- is paid. Defendant therefore contended that the suit ought to have been valued at Rs. 1,95,00,000/- and therefore would fall beyond the pecuniary jurisdiction of the City Civil Court, which is restricted at Rs.1 crore.

Plaintiffs resisted the Motion by filing Affidavit in Reply inter-alia contending that the document is not executed by the Trust and therefore not binding on it. That the suit has rightly been valued under Clause 6(iv)(j) of the Maharashtra Court Fees Act , 1959 (Court Fees Act). After hearing both sides, the City Civil Court proceeded to pass order dated 12 October 2022 and allowed Notice of Motion No. 1797/2021 directing return of the Plaint filed in S. C. Suit No. 112/2021 to the Plaintiffs to be presented before this Court. Plaintiffs are aggrieved by the order dated 12 October 2022 and have filed the present Appeal.

4. Mr. Godbole, the learned senior advocate would appear on behalf of the Appellants/Plaintiffs and submit that the Suit is only for a declaration and is therefore correctly valued under Section 6 (iv)(j) of the Court Fees Act. He would submit that the valuation done for the purpose of payment of stamp duty under the provisions of Maharashtr

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