Case Note & Summary
The applicant, Prakash Wanjari, along with two others, entered into an agreement to sale dated 18/01/2009 with the non-applicants (defendants) for the purchase of agricultural land measuring 3.51 hectares in Survey No. 164/1 and 4 hectares in Survey No. 164/2 at Mouza Kandri (Kanhan) for a consideration of Rs. 6,00,000/-. Subsequently, on 24/04/2011, the other two purchasers executed a relinquishment deed in favour of the applicant, making him the sole beneficiary. As the non-applicants failed to execute the sale deed despite a legal notice dated 15/02/2011, the applicant filed a suit for specific performance of contract, declaration, and possession on 04/07/2011, valuing the suit property at Rs. 1,09,00,000/- and paying court fees accordingly. The non-applicants filed an application under Order 7 Rule 11 of the Code of Civil Procedure, 1908 (CPC) for rejection of the plaint on the ground of undervaluation and non-payment of proper court fees. The trial court allowed the application and rejected the plaint. Aggrieved, the applicant filed the present civil revision application. The High Court observed that the valuation of the suit property by the plaintiff was not shown to be arbitrary or mala fide, and the defendants had not disputed the agreement to sale. The court held that the trial court erred in rejecting the plaint at the threshold without giving the plaintiff an opportunity to correct the valuation or pay additional court fees. The High Court set aside the impugned order and directed the trial court to proceed with the suit on its own merits, in accordance with law.
Headnote
A) Civil Procedure - Rejection of Plaint - Order 7 Rule 11 CPC - Valuation and Court Fees - The trial court rejected the plaint on the ground that the suit was undervalued and proper court fees were not paid. The High Court held that the valuation of the suit property at Rs. 1,09,00,000/- by the plaintiff was not shown to be arbitrary or mala fide, and the defendants had not disputed the agreement to sale. The court set aside the order and directed the trial court to proceed with the suit on merits. (Paras 2-6) B) Specific Performance - Agreement to Sale - Enforceability - The plaintiff and two others entered into an agreement to sale with the defendants on 18/01/2009. Subsequently, the other two purchasers relinquished their rights in favour of the plaintiff. The defendants did not dispute the agreement but failed to execute the sale deed. The High Court held that the plaintiff was entitled to enforce the agreement. (Paras 3-4)
Issue of Consideration
Whether the trial court was justified in rejecting the plaint under Order 7 Rule 11 of the Code of Civil Procedure, 1908 on the ground of undervaluation and non-payment of proper court fees.
Final Decision
The High Court allowed the civil revision application, set aside the order dated 23/06/2014 passed by the learned Civil Judge, Senior Division, Nagpur in Spl. Civil Suit No. 816/2011, and directed the trial court to proceed with the suit on its own merits in accordance with law.
Law Points
- Order 7 Rule 11 CPC
- Rejection of Plaint
- Specific Performance of Contract
- Agreement to Sale
- Valuation of Suit
- Court Fees
