Suit Valuation and Court Fee: A Comprehensive Legal Guide

Introduction

The Suit Valuation and Court Fee Payment are pivotal aspects of civil litigation in India. They determine the jurisdiction of the court, the amount of stamp duty, and the adequacy of the relief sought. The valuation of a suit depends on the nature of the relief claimed and the subject matter involved. The payment of court fee is governed by the Court Fees Act, 1870, and the rules made by the State Governments. This article delves into the relevant provisions of the Civil Procedure Code, 1908 (CPC), and the Court Fees Act, 1870, along with landmark judgments that have shaped the legal landscape in this regard.

Legal Framework: Provisions in the CPC and Court Fees Act

Section 7(4)© of the Court Fees Act, 1870

This section stipulates that for a relief for declaration and consequential relief, ad valorem court fees, i.e., as per the value of the suit property, are to be paid. The value of the suit property is determined by its market value or by any other mode prescribed by law.

Article 17 of Schedule II, Court Fees Act, 1870

In cases where only declaratory relief is sought, without any consequential relief affecting any property or right, a fixed court fee of Rs 250 is applicable.
Section 3 of the Suit Valuation Act, 1887

This section empowers the State Government to make rules for determining the value of land for jurisdictional purposes. The rules may prescribe different modes of valuation for different classes of suits or areas.

Section 8 of the Suit Valuation Act, 1887

This section specifies that in certain cases, such as suits for accounts, partition, administration, injunctions, etc., the valuation of the suit for the purpose of court fees and jurisdiction shall be the same.

Landmark Judgments

Srihari Hanumandas Totala v. Hemant Vithal Kamat & Ors., Civil Appeal No. 4665/2021

This case clarified the scope and applicability of Order VII Rule 14(3) of the CPC, which deals with documents not in possession or power of the plaintiff. The Court held that this rule does not apply to documents which are public records or which can be easily accessed by due diligence. It also held that a plaint cannot be rejected under Order VII Rule 11(d) on account of non-production or non-listing of such documents¹.

State Of Punjab vs Dev Brat Sharma & Ors., Civil Appeal No. 292/2022

This case held that under Section 7(i) of the Court Fees Act, 1870, ad valorem court fees would be payable on the amount claimed if the suit is a money suit for compensation and damages. It also held that it is only with respect to suits specified in clause (iv) of Section 7 that the plaintiff has the liberty of stating in the plaint the amount at which relief is valued².

Agra Diocesan Trust Association vs Anil David And Ors., Civil Appeal No. 1722/2020

The Supreme Court of India in Agra Diocesan Trust Association vs Anil David And Ors., Civil Appeal No. 1722/2020, held that a suit for cancellation of sale deed and permanent injunction is not a suit for declaration with consequential relief under Section 7(iv)© of the Court Fees Act, 1870. It also held that such a suit has to be valued as per Section 7(v) read with Section 25(1)(b)(ii)(a)(ii) of the Uttar Pradesh Court Fees (Amendment) Act, 1976, which provides for valuation based on thirty times of annual rent or revenue.

The Supreme Court relied on its earlier decision in Shantaben v. State of Gujarat3, where it was held that a suit for cancellation of sale deed is not a suit for declaration with consequential relief, but a suit for specific performance of contract. The Court also observed that the plaintiff was not a party to the sale deed and therefore, he could not seek its cancellation on the ground of fraud or misrepresentation. The Court further noted that the plaintiff had not challenged the validity of the sale deed, but only sought its cancellation as it affected his rights over the property. Therefore, the Court concluded that the suit was essentially one for specific performance of contract and hence, it had to be valued as per Section 7(v) read with Section 25(1)(b)(ii)(a)(ii) of the Uttar Pradesh Court Fees (Amendment) Act, 1976.

Conclusion

The valuation of a suit and the payment of court fees are governed by specific legal provisions and judicial precedents. Proper compliance ensures the smooth conduct of civil litigation and avoids unnecessary objections or delays.

References

1. Srihari Hanumandas Totala v. Hemant Vithal Kamat & Ors., Civil Appeal No. 4665/20211¹
2. State Of Punjab vs Dev Brat Sharma & Ors., Civil Appeal No. 292/20222²
3. Agra Diocesan Trust Association vs Anil David And Ors., Civil Appeal No. 1722/20204³

Provisions of Law

Provisions of Law

Sr. No.	Provision / Section of Law	Exact text of the Provision / Section of Law
1	Section 7(4)©, Court Fees Act, 1870	“In suits for a declaratory decree and consequential relief, fee shall be computed on the amount at which the relief sought is valued in the plaint or memorandum of appeal.”
2	Article 17, Schedule II, Court Fees Act, 1870	“Fixed court fee of Rs 250 shall be applicable for declaratory relief.”
3	Section 3, Suit Valuation Act, 1887	“Power of the State Government to make Rules determining value of land for jurisdictional purposes.”
4	Section 8, Suit Valuation Act, 1887	“Valuation of the suit for the purpose of court fees and jurisdiction shall be the same.”
5	Order VII Rule 14(3), CPC, 1908	“Where any document relied on is not in the possession or power of the plaintiff, he shall, as far as possible, state in whose possession or power it is.”
6	Order VII Rule 11(d), CPC, 1908	“The plaint shall be rejected where the suit appears from the statement in the plaint to be barred by any law.”
7	Section 7(i), Court Fees Act, 1870	“In suits for money (including suits for damages or compensation, or arrears of maintenance, of annuities, or of other sums payable periodically) – according to the amount claimed.”
8	Section 7(iv), Court Fees Act, 1870	“In suits – (a) for movable property of no market-value; (b) to enforce a right to share in any property on the ground that it is joint family property; © for a declaratory decree and consequential relief – according to the amount at which the relief sought is valued in the plaint or memorandum of appeal. In all such suits the plaintiff shall state the amount at which he values the relief sought: Provided that minimum court-fee in respect of such suits shall be fifteen rupees.”
9	Section 7(v), Court Fees Act, 1870	“In suits for the possession of land, houses and gardens – according to the value of the subject-matter; and such value shall be deemed to be – where the subject-matter is land, and – (a) where the land forms part of an estate paying annual revenue to Government, or forms part of an estate paying revenue to Government but not at a fixed rate; or forms part of an estate paying no revenue to Government but paying a fixed sum annually to a superior landlord; according to one-fifth of the revenue payable by such estate or part thereof respectively; (b) where the land forms part of an estate paying revenue to Government but not at a fixed rate; or forms part of an estate paying no revenue to Government but paying a fixed sum annually to a superior landlord; according to one-fifth of such revenue or fixed sum respectively; © where the land pays no such revenue or fixed sum – according to one-fifth of the net profits accruing from such land during the year next before the date of presenting the plaint; (d) where rent is paid by a tenant with special rights – according to one-fifth of such rent;”
10	Section 25(1)(b)(ii)(a)(ii)(a)(ii)(a)(ii)(a)(ii)(a)(ii)(a)(ii)(a)(ii)(a)(ii)(a)(ii) (a) (ii) (a) (ii) (a) (ii) (a) (ii) (a) (ii) (a) (ii), Court Fees Act, 1870	“In suits for possession under section seven paragraph five clause (d), thirty times such rent.”

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