Case Note & Summary
The case arises from Regular Civil Suit No. 780 of 2009 filed by respondents no.1 and 2 (plaintiffs) against the applicants (defendants) seeking a declaration and injunction. The defendants filed an application under Order VII Rule 11(b) of the Code of Civil Procedure, 1908, contending that the suit was undervalued and the court fees paid were insufficient. The trial court rejected this application on 19th November 2010, holding that the valuation of the suit was correct. Aggrieved, the defendants filed a Civil Revision Application under Section 115 CPC before the Bombay High Court. The High Court heard the parties and perused the plaint, application, reply, and impugned order. The court noted that the trial court had considered the plaint and the valuation and found it to be proper. The High Court observed that the finding of the trial court on valuation was a finding of fact and not perverse or illegal. The court held that the valuation for court fees and jurisdiction is determined by the relief claimed in the plaint, and the trial court had correctly applied the law. Consequently, the High Court dismissed the Civil Revision Application, finding no merit in the defendants' challenge. The court also noted that the defendants had an opportunity to raise the issue of valuation at the trial, but the trial court's order rejecting the application under Order VII Rule 11(b) was not liable to be interfered with in revision.
Headnote
A) Civil Procedure - Rejection of Plaint - Order VII Rule 11(b) CPC - Undervaluation - The defendants sought rejection of plaint on the ground that the suit for declaration and injunction was undervalued and proper court fees were not paid. The trial court rejected the application, holding that the valuation was correct. The High Court in revision under Section 115 CPC upheld the trial court's finding, observing that the valuation of the suit is a finding of fact and the trial court had correctly applied the law. (Paras 2-5) B) Court Fees - Valuation of Suit - Section 6 Bombay Court Fees Act (Maharashtra Court Fees Act) - The plaintiffs valued the suit for declaration and injunction at a certain amount and paid court fees accordingly. The defendants contended that the suit was undervalued. The High Court held that the valuation for court fees and jurisdiction is determined by the relief claimed in the plaint, and the trial court's finding that the valuation was proper was not perverse or illegal. (Paras 2-5)
Issue of Consideration
Whether the trial court erred in rejecting the defendants' application under Order VII Rule 11(b) CPC for rejection of plaint on the ground of undervaluation of the suit and insufficient court fees.
Final Decision
The High Court dismissed the Civil Revision Application, upholding the trial court's order rejecting the defendants' application under Order VII Rule 11(b) CPC.
Law Points
- Valuation of suit for court fees and jurisdiction is determined by the relief claimed in the plaint
- Order VII Rule 11(b) CPC applies only when relief is undervalued and plaintiff fails to correct valuation after being required by court
- finding of fact by trial court on valuation not interfered with in revision under Section 115 CPC
