Bombay High Court Allows Writ Petition Challenging Trial Court's Order on Court Fee Valuation in Suit for Declaration and Injunction. The court held that a suit for declaration that an advertisement claiming possession is illegal, with a consequential injunction, is not a suit for possession and must be valued under Section 6(iv)(j) of the Bombay Court Fees Act, 1959, not under Section 6(iv)(d).

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The petitioner, Shetkari Sahakari Ginning and Pressing Society Limited, filed Regular Civil Suit No. 155 of 2011 before the Civil Judge, Senior Division, Amravati, seeking a declaration that an advertisement dated 22.8.2010 published by the Municipal Corporation, Amravati, claiming to have taken possession of the suit plots, was arbitrary and illegal. In the alternative, the petitioner sought a declaration that if the Corporation had presumptive possession, it was illegal and possession should be restored. The petitioner also sought a permanent injunction restraining the Corporation from dealing with the suit plots. The respondent Corporation filed an application under Order 7, Rule 11 of the Code of Civil Procedure, 1908, contending that the petitioner was liable to pay 1/4th ad valorem court fee under Section 6(iv)(d) of the Bombay Court Fees Act, 1959, as the value of the suit plots exceeded Rs. 30 lacs. The trial court partly allowed the application, directing the petitioner to value the suit correctly under Section 6(iv)(d) and pay the requisite court fee within one month. The petitioner challenged this order by way of a writ petition. The High Court, after hearing the parties and perusing the plaint, held that the suit was not for possession but for a declaration with a consequential injunction. The court noted that the petitioner had valued the suit for jurisdiction and court fee under Section 6(iv)(j) of the Act, which applies to suits for declarations with or without consequential relief. The court found that the trial court had misread the plaint and erred in directing ad valorem court fee. The High Court allowed the writ petition, set aside the impugned order, and directed the trial court to proceed with the suit in accordance with law, treating the valuation under Section 6(iv)(j).

Headnote

A) Court Fees - Suit Valuation - Declaration and Injunction - Section 6(iv)(j) Bombay Court Fees Act, 1959 - The petitioner filed a suit for declaration that the respondent Corporation's advertisement claiming possession of suit plots was illegal, and for permanent injunction restraining the Corporation from dealing with the plots. The trial court directed payment of ad valorem court fee under Section 6(iv)(d). The High Court held that the suit was not for possession but for a declaration with consequential injunction, and the valuation for court fee was not required to be ad valorem. The court set aside the trial court's order and directed that the suit be valued under Section 6(iv)(j) of the Act. (Paras 1-8)

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Issue of Consideration

Whether the trial court erred in directing the petitioner to pay ad valorem court fee under Section 6(iv)(d) of the Bombay Court Fees Act, 1959, instead of a fixed court fee under Section 6(iv)(j) of the Act, for a suit seeking declaration and permanent injunction regarding possession of plots.

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Final Decision

The High Court allowed the writ petition, set aside the impugned order of the trial court dated 27th June 2014, and directed the trial court to proceed with the suit in accordance with law, treating the valuation under Section 6(iv)(j) of the Bombay Court Fees Act, 1959.

Law Points

  • Court fee valuation
  • Suit for declaration and injunction
  • Section 6(iv)(j) Bombay Court Fees Act
  • 1959
  • Order 7 Rule 11 CPC
  • Plaint rejection
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Case Details

2014 LawText (BOM) (06) 85

Writ Petition No. 804 of 2014

2014-06-27

A. P. Bhangale, J

Mr Kuldeep Mahalle for petitioner, Mr S. S. Shingne for respondents

Shetkari Sahakari Ginning and Pressing Society Limited, Old VMV Road, Amravati through its Chairman Sunil Gunwantrao Mankar

1. Municipal Corporation, Amravati, through its Municipal Commissioner. 2. Assistant Director of Town Planning, Amravati

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Nature of Litigation

Civil suit for declaration and permanent injunction regarding possession of plots.

Remedy Sought

Petitioner sought declaration that advertisement dated 22.8.2010 claiming possession of suit plots was illegal, and permanent injunction restraining respondent Corporation from dealing with the plots.

Filing Reason

Respondent Corporation published an advertisement claiming to have taken possession of suit plots without actually taking possession, which the petitioner alleged was arbitrary and illegal.

Previous Decisions

Trial court partly allowed respondent's application under Order 7 Rule 11 CPC, directing petitioner to pay ad valorem court fee under Section 6(iv)(d) of Bombay Court Fees Act.

Issues

Whether the suit is for possession or for declaration with consequential injunction, affecting court fee valuation. Whether the trial court erred in directing payment of ad valorem court fee under Section 6(iv)(d) instead of fixed court fee under Section 6(iv)(j) of the Bombay Court Fees Act, 1959.

Submissions/Arguments

Petitioner argued that the suit is for declaration and injunction, not for possession, and thus falls under Section 6(iv)(j) of the Bombay Court Fees Act, 1959, requiring only a fixed court fee. Respondent contended that the suit involves possession and therefore ad valorem court fee under Section 6(iv)(d) is applicable.

Ratio Decidendi

A suit for declaration that an advertisement claiming possession is illegal, with a consequential injunction, is not a suit for possession. The valuation for court fee in such a suit is governed by Section 6(iv)(j) of the Bombay Court Fees Act, 1959, which provides for a fixed court fee, and not by Section 6(iv)(d) which requires ad valorem fee for suits involving possession.

Judgment Excerpts

Petitioner (original plaintiff) filed Regular Civil Suit No. 155 of 2011 before the Civil Judge, Senior Division, Amravati for declaration and permanent injunction. Learned trial Judge partly allowed the application and directed petitioner to value suit correctly as per Section 6 (iv) (d) of the Bombay Court Fees Act, 1959 and pay requisite court fee within a period of one month from the date of order.

Procedural History

Petitioner filed Regular Civil Suit No. 155 of 2011. Respondent Corporation filed application (exhibit 17) under Order 7 Rule 11 CPC for deficit court fee and rejection of plaint. Trial court partly allowed the application on 27th June 2014, directing petitioner to pay ad valorem court fee. Petitioner challenged this order by filing Writ Petition No. 804 of 2014 before the Bombay High Court, Nagpur Bench.

Acts & Sections

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