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Chetan Krishna Shetty VS Seema Chetan Shetty - Bombay (2022)

: The court held that ad valorem court fee is not required to be paid for a suit challenging a gift deed when the relief sought is a declaration that the gift deed is illegal, void, and bad in law, without seeking cancellation. The court emphasized that since gift deeds are executed without consideration, the subject matter is not susceptible to monetary evaluation, and therefore, the suit falls under Section 6(iv)(j) of the Maharashtra Court Fees Act, which prescribes a fixed court fee of Rs.1,000.00 instead of ad valorem fees. This was confirmed in the judgment, which declared that the plaintiff had rightly valued the suit at Rs.1,000.00 under Section 6(iv)(j), and the order directing payment of deficit court fee based on ad valorem valuation was quashed.Checking relevance for Naveen Chaudhary VS Harsh Chaudhary...

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2023 0 Supreme(Raj) 716 : Ad valorem court fee is to be paid for cancellation of a gift deed when the plaintiff is the executant of the deed. The court held that in the instant case, since the plaintiff sought cancellation of gift deeds executed by him, Section 38 of the Rajasthan Court Fee and Suit Valuation Act, 1961 applies, which mandates payment of ad valorem court fee based on the market value of the subject matter (land). This is in contrast to Section 24, which applies to non-executants seeking declaration rather than cancellation, and which would require only a fixed court fee. The court emphasized that the plaintiff, as the executant, must pay ad valorem court fee on the market value of the land, not the nominal consideration stated in the deed.Checking relevance for Narinder Iqbal Singh VS Sarabjit Kaur...

2024 0 Supreme(P&H) 389 : Ad valorem court fee is payable on the value specified in transfer deeds when annulled by the executant, as per Section 7(iv)(c) of the Court Fees Act, 1870. This principle applies to suits for cancellation or annulment of instruments, including gift deeds, where the executant seeks to annul the document. The Full Bench decision in Niranjan Kaur vs Nirbigan Kaur (AIR 1981 P&H 368) and the Supreme Court ruling in Suhrid Singh alias Sardool Singh confirm that if an instrument is sought to be annulled by the executant, ad valorem court fee on the amount of consideration (or value stated in the deed) must be paid. Therefore, a suit for cancellation of a gift deed filed by the executant requires payment of ad valorem court fee based on the value specified in the deed.Checking relevance for Sukhlal VS Devilal...

1953 0 Supreme(Raj) 122 : Ad valorem court fee is payable for the cancellation of a deed when the plaintiff cannot establish their title without removing an insuperable obstacle such as a deed to which they have been a party or by which they are otherwise bound. In such cases, the suit is, in substance, a suit for cancellation of the deed, and thus the court fee is ad valorem according to Art. 1, Schdl. 1, Court Fees Act. This principle applies to a gift deed if it constitutes an insuperable obstacle to the plaintiff''''s title.Checking relevance for Niranjan Kaur VS Nirbigan Kaur...

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2017 0 Supreme(P&H) 952 : The plaintiff, as the executant of the gift deed, is required to pay ad valorem Court fee for seeking cancellation of the deed. This is based on Article 1 of Schedule 1 of the Court Fees Act, 1870, and is supported by authoritative pronouncements.


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  • Ad Valorem Court Fee on Gift Deeds and Cancellation - When seeking to cancel or declare a gift deed as void, the courts generally require the payment of ad valorem court fee based on the consideration amount or the valuation of the property specified in the deed. If the case involves a declaration of the deed as void or non-binding, the court fee may be calculated under specific provisions such as Article 17(iii) of Schedule II of the Court Fees Act

    TARA CHAND vs JITENDER KUMAR AND ANR - Punjab and Haryana

    , 2022 Supreme(Online)(MP) 3225.
  • Executant's Obligation to Pay Court Fee - If the person who executed (the executant) of the gift deed seeks its cancellation, they are typically required to pay ad valorem court fee on the consideration amount mentioned in the sale or gift deed. This is supported by multiple rulings indicating that the court fee should be proportional to the consideration or valuation declared in the deed

    KAUSHALYA DEVI & ORS vs NIRMAL BHARDWAJ & ORS - Punjab and Haryana

    ,

    SUSHIL GUPTA Vs RISHI RAM AGGARWAL - Punjab and Haryana

    , 2022 Supreme(Online)(MP) 3225.
  • Exceptions and Specific Cases - In cases where the suit is for declaration of the deed as void due to fraud or other grounds, and the relief is not specifically for cancellation, fixed court fees under Article 17(iii) may suffice, and ad valorem fees might not be necessary. Also, if the plaintiff is not the executant and seeks to declare the deed non-binding, different fee rules apply. The court has clarified that the nature of the relief (cancellation vs. declaration) dictates the court fee 2022 Supreme(Online)(MP) 3225, 2025 Supreme(Online)(MP) 6208.

  • Legal Precedents and Judgments - Courts have consistently held that ad valorem court fee is payable when the relief involves cancellation of a gift deed or sale deed, especially when the applicant is the executant or a party to the deed. However, if the relief is solely for declaration of the deed as void or non-binding without cancellation, fixed fees may be sufficient

    SMT. BARJI DEVI W/O GOPAL SAINI D/O PRABHATILAL vs PRABHATILAL S/O GHISA - Rajasthan

    ,

    TARA CHAND vs JITENDER KUMAR AND ANR - Punjab and Haryana

    , 2023 Supreme(Online)(KAR) 16263.

Analysis and Conclusion:The prevailing legal view is that ad valorem court fee must be paid when an executant seeks to cancel a gift deed, based on the consideration amount or valuation specified in the deed. This is reinforced by multiple court rulings, which emphasize that the nature of relief—cancellation versus declaration—determines the fee payable. Courts have also recognized exceptions where fixed fees are applicable, particularly in declarations of voidness or non-binding status. Therefore, for cancellation of a gift deed, payment of ad valorem court fee on the consideration or valuation is generally mandatory

SUSHIL GUPTA Vs RISHI RAM AGGARWAL - Punjab and Haryana

, 2022 Supreme(Online)(MP) 3225.

References:-

KAUSHALYA DEVI & ORS vs NIRMAL BHARDWAJ & ORS - Punjab and Haryana

- TARA CHAND vs JITENDER KUMAR AND ANR - Punjab and Haryana_HC_RJHC020027792019- TARA CHAND vs JITENDER KUMAR AND ANR - Punjab and Haryana_HC_PHHC010082542016- 2022 Supreme(Online)(MP) 3225- 2025 Supreme(Online)(MP) 6208- TARA CHAND vs JITENDER KUMAR AND ANR - Punjab and Haryana_HC_PHHC010084842016- 2025 Supreme(Online)(Del) 2235- 2023 Supreme(Online)(KAR) 16263- 2024 Supreme(Online)(MP) 8193
Ad Valorem Court Fee Requirements for Executant and Non-Executant Gift Deed Cancellation Suits

Ad Valorem Court Fee for Gift Deed Cancellation Explained

Have you ever executed a gift deed only to regret it later? Or are you challenging a gift deed executed by someone else, seeking to have it annulled? One critical aspect often overlooked is the court fee payable for such suits. Specifically, Ad Valorem Court Fee is to be Paid for Cancellation of Gift Deed in many cases. This blog post breaks down the legal requirements, drawing from statutory provisions and key judgments, to help you understand when and why ad valorem fees apply.

Note: This is general information based on legal precedents and not specific legal advice. Consult a qualified lawyer for your situation.

What is Ad Valorem Court Fee?

Ad valorem court fees are calculated as a percentage of the value of the subject matter of the suit, unlike fixed fees. Under the Court Fees Act, 1870, particularly Section 7(iv)(c), suits for cancellation of deeds or declarations that a deed is void/not binding on the plaintiff (when the plaintiff is the executant) attract ad valorem fees based on the consideration or value specified in the deed. This ensures the fee reflects the stakes involved in property disputes. 2024 0 Supreme(P&H) 389

For gift deeds, which typically involve no monetary consideration but transfer property value, the fee is often based on the property's valuation as per the deed or market value. 2024 Supreme(Online)(MP) 8193

Main Legal Finding: When Must You Pay Ad Valorem Fee?

The core rule is straightforward yet nuanced:

  • Executant Seeking Cancellation: If you, as the person who executed the gift deed (executant), file a suit to cancel it, you must pay ad valorem court fee based on the value in the deed. This is mandated by Section 7(iv)(c). Supported by Suhrid Singh @ Sardool Singh Vs. Randhir Singh & Ors. and Full Bench in Niranjan Kaur vs Nirbigan Kaur. 2024 0 Supreme(P&H) 389 2017 0 Supreme(P&H) 952

  • Non-Executant Seeking Annulment: If you're not the executant (e.g., a family member challenging the deed's validity) and seek annulment with consequential relief like possession, ad valorem fee applies too. 2017 0 Supreme(P&H) 952 1953 0 Supreme(Raj) 122

As one judgment clarifies: 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. Though referencing a sale deed, the principle extends to gift deeds by analogy.

TARA CHAND vs JITENDER KUMAR AND ANR - 2023 Supreme(Online)(P&H) 15062 - 2023 Supreme(Online)(P&H) 15062

Key Distinction: Cancellation vs. Declaration Suits

Courts emphasize the relief sought:

  • Suits for Cancellation: Ad valorem fee on the deed's value/consideration. 1953 0 Supreme(Raj) 122

  • Pure Declaratory Suits (deed is invalid/void, no cancellation or possession sought): Fixed fee may apply under other provisions like Article 17(iii) of Schedule II, if no monetary valuation. 2023 0 Supreme(Raj) 716

The distinction between suits for cancellation of a deed and suits for declaration that a deed is invalid is crucial; in the former, ad valorem fee based on consideration/value is payable. 1953 0 Supreme(Raj) 122

In S. Majinder Singh, suits for declaration involving cancellation by executant require ad valorem fee. 2023 0 Supreme(Raj) 716

Application to Gift Deeds: Executant vs. Non-Executant

For the Executant

If you're the donor who gifted the property and now want it back:- Pay ad valorem fee on the property value per the deed. 2017 0 Supreme(P&H) 952- Example: Ad valorem court fee is payable for seeking cancellation of a gift deed when the plaintiff is the executant. 2017 0 Supreme(P&H) 952

Courts have set aside undervaluation orders, directing ad valorem payment.

SMT. BARJI DEVI W/O GOPAL SAINI D/O PRABHATILAL vs PRABHATILAL S/O GHISA - Rajasthan

For Non-Executants

Challengers (e.g., heirs claiming fraud):- If suit includes annulment + possession, ad valorem fee. 2023 0 Supreme(Raj) 716- When a non-executant seeks annulment of the deed and a consequential relief (such as possession), ad valorem court fee is also required. 2017 0 Supreme(P&H) 952

In Roopa Kailash Ganatra & Anr vs. Reena Sabherwal & Ors., declarations of invalidity without cancellation may attract fixed fees, but executant cancellation demands ad valorem. 2023 0 Supreme(Raj) 716

Relevant Case Law and Precedents

Multiple High Courts (Punjab, Haryana, Rajasthan, Delhi, MP) consistently uphold this.

TARA CHAND vs JITENDER KUMAR AND ANR - 2023 Supreme(Online)(P&H) 15062 - 2023 Supreme(Online)(P&H) 15062

SMT. BARJI DEVI W/O GOPAL SAINI D/O PRABHATILAL vs PRABHATILAL S/O GHISA - Rajasthan

Exceptions and Limitations

Not every challenge incurs ad valorem fees:

  • Pure declaration of voidness (no cancellation/possession): Fixed fee possible. 2023 0 Supreme(Raj) 716
  • If the suit is purely for a declaration that a deed is invalid without seeking cancellation or consequential relief involving possession, a fixed or minimal fee may be applicable. 2023 0 Supreme(Raj) 716

  • Courts look at substance over plaint wording: Valuation must match relief. 1953 0 Supreme(Raj) 122

In fraud cases without cancellation prayer, fixed fees under Article 17(iii) may suffice. 2022 Supreme(Online)(MP) 3225

Practical Recommendations

  • Assess Your Role: Executant? Expect ad valorem. Non-executant with possession relief? Likely same.

  • Valuate Correctly: Use deed value or market value; undervaluation risks dismissal. 2024 Supreme(Online)(MP) 8193

  • Draft Carefully: Specify reliefs accurately to avoid fee disputes.

  • Seek Expert Help: Courts verify fees strictly; non-compliance leads to complications.

Conclusion and Key Takeaways

In summary, ad valorem court fee is generally required for cancellation of a gift deed by the executant or non-executants seeking consequential reliefs, per Section 7(iv)(c) of the Court Fees Act and precedents like Suhrid Singh. Exceptions exist for pure declarations, but err on caution. 2024 0 Supreme(P&H) 389 2017 0 Supreme(P&H) 952

Key Takeaways:- Executants: Always ad valorem on deed value.- Non-executants: Depends on relief (annulment + possession = ad valorem).- Distinguish cancellation from declaration.- Cite proper valuation to avoid pitfalls.

Stay informed, but always consult a legal professional for tailored advice.

References

  1. 2017 0 Supreme(P&H) 952 - Executant cancellation requires ad valorem.
  2. 2024 0 Supreme(P&H) 389 - Section 7(iv)(c) principles.
  3. 1953 0 Supreme(Raj) 122 - Cancellation vs. declaration.
  4. 2023 0 Supreme(Raj) 716 - Non-executant suits.
  5. TARA CHAND vs JITENDER KUMAR AND ANR - 2023 Supreme(Online)(P&H) 15062 - 2023 Supreme(Online)(P&H) 15062

    - Executant fee obligation.
  6. SMT. BARJI DEVI W/O GOPAL SAINI D/O PRABHATILAL vs PRABHATILAL S/O GHISA - Rajasthan

    - Sets aside unjustified fee waivers.
  7. Others as cited.
#GiftDeedCancellation, #CourtFeesIndia, #AdValoremFee
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