Bombay High Court Dismisses Revision Against Rejection of Plaint for Non-Payment of Proper Court Fees in Suit for Declaration and Injunction. Court Fees Act, 1870 Section 7(iv)(c) and Bombay Court Fees Act, 1959 Section 6(iv)(j) require ad valorem court fees on market value where plaintiff is not in possession.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The case involves a civil revision application filed by the plaintiffs (revision applicants) against an order of the trial court rejecting their plaint under Order VII Rule 11 of the Code of Civil Procedure, 1908 for non-payment of proper court fees. The plaintiffs had filed a suit for declaration of title and permanent injunction in respect of a property, claiming that they were in possession. However, the trial court found that the plaintiffs were not in possession and that the suit was essentially for possession, requiring ad valorem court fees on the market value of the property under Section 7(iv)(c) of the Court Fees Act, 1870 or Section 6(iv)(j) of the Bombay Court Fees Act, 1959. The plaintiffs had paid only a fixed court fee of Rs. 20, which was insufficient. The trial court gave the plaintiffs an opportunity to pay the deficit court fees, but they failed to do so, leading to rejection of the plaint. The High Court upheld the trial court's order, holding that the plaintiffs were not in possession and that the suit was for possession, thus requiring ad valorem court fees. The revision application was dismissed.

Headnote

A) Court Fees - Suit for Declaration and Injunction - Ad Valorem Court Fees - Where plaintiff is not in possession, suit for declaration of title and injunction falls under Section 7(iv)(c) of the Court Fees Act, 1870 or Section 6(iv)(j) of the Bombay Court Fees Act, 1959, requiring ad valorem court fees on the market value of the property. The court held that since the plaintiffs were not in possession, they must pay court fees on the market value of the suit property, and failure to do so justifies rejection of plaint under Order VII Rule 11 CPC (Paras 5-8).

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Issue of Consideration

Whether the trial court was justified in rejecting the plaint under Order VII Rule 11 of the Code of Civil Procedure, 1908 for non-payment of proper court fees, where the plaintiffs sought a declaration of title and injunction but were not in possession of the suit property.

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Final Decision

The High Court dismissed the civil revision application, upholding the trial court's order rejecting the plaint for non-payment of proper court fees.

Law Points

  • Court fees
  • Ad valorem
  • Market value
  • Possession
  • Declaration
  • Injunction
  • Suit valuation
  • Bombay Court Fees Act
  • 1959
  • Section 6(iv)(j)
  • Court Fees Act
  • 1870
  • Section 7(iv)(c)
  • Plaint rejection
  • Order VII Rule 11 CPC
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Case Details

2010 LawText (BOM) (02) 21

Civil Revision Application No.180 of 2009

2010-02-09

K.U. Chandiwala

Mohd.Ansar Salik and others

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Nature of Litigation

Civil revision application against order rejecting plaint for non-payment of proper court fees.

Remedy Sought

The plaintiffs sought to set aside the trial court's order rejecting the plaint and to allow them to proceed with the suit on payment of fixed court fees.

Filing Reason

The plaintiffs filed a suit for declaration of title and permanent injunction, but the trial court held that they were not in possession and required ad valorem court fees on market value, which they failed to pay.

Previous Decisions

The trial court rejected the plaint under Order VII Rule 11 CPC for non-payment of proper court fees.

Issues

Whether the trial court was correct in holding that the plaintiffs were not in possession of the suit property. Whether the suit required ad valorem court fees on the market value of the property under Section 7(iv)(c) of the Court Fees Act, 1870 or Section 6(iv)(j) of the Bombay Court Fees Act, 1959. Whether the rejection of plaint under Order VII Rule 11 CPC was justified.

Submissions/Arguments

The plaintiffs argued that they were in possession and therefore entitled to pay only a fixed court fee. The trial court found that the plaintiffs were not in possession and that the suit was essentially for possession, requiring ad valorem court fees.

Ratio Decidendi

In a suit for declaration of title and injunction, if the plaintiff is not in possession, the suit is for possession and ad valorem court fees must be paid on the market value of the property under Section 7(iv)(c) of the Court Fees Act, 1870 or Section 6(iv)(j) of the Bombay Court Fees Act, 1959. Failure to pay such court fees after opportunity leads to rejection of plaint under Order VII Rule 11 CPC.

Judgment Excerpts

The plaintiffs are not in possession of the suit property. Therefore, the suit is for possession and ad valorem court fees on the market value of the property is required. The trial court gave opportunity to pay deficit court fees, but the plaintiffs failed to do so. Hence, rejection of plaint is justified.

Procedural History

The plaintiffs filed a suit for declaration and injunction. The trial court held that plaintiffs were not in possession and required ad valorem court fees. Plaintiffs failed to pay, leading to rejection of plaint under Order VII Rule 11 CPC. Plaintiffs filed a civil revision application before the High Court, which was dismissed.

Acts & Sections

  • Code of Civil Procedure, 1908: Order VII Rule 11
  • Court Fees Act, 1870: Section 7(iv)(c)
  • Bombay Court Fees Act, 1959: Section 6(iv)(j)
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