Bombay High Court Dismisses Revision Against Rejection of Inquiry into Valuation and Court Fees in Suit for Declaration of Sale Deed as Void. Court Held That Section 8 of Maharashtra Court-Fees Act, 1959 Confers Discretion on Trial Court to Inquire into Valuation, Not a Mandatory Duty.

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

The case arises from a civil suit filed by the plaintiff (respondent No.1) seeking a declaration that a sale deed of suit property is void, illegal, and not binding on him and his legal heirs. The suit was valued at Rs.1,60,000/- based on the consideration mentioned in the registered sale deed. The defendants (applicants herein), being defendant Nos.2 and 3, filed an application before the trial court (Civil Judge Junior Division, Katol) praying that an inquiry be made regarding the market value of the suit property to ascertain proper court fees and pecuniary jurisdiction. The trial court rejected that application by order dated 6.9.2012. Aggrieved, the defendants filed the present Civil Revision Application under Section 115 of the Code of Civil Procedure, 1908, challenging the legality, propriety, and correctness of the impugned order. The applicants argued that under Section 8 of the Maharashtra Court-Fees Act, 1959, the trial court was obliged to hold an inquiry into valuation. They relied on the decision in Miss Aninha D'Costa vs. Mrs. Parvatibai M. Thakur, AIR 1966 Bombay 113. The High Court heard both sides and held that Section 8 of the Act is not mandatory but discretionary. The trial court, in its discretion, found no reason to doubt the plaintiff's valuation based on the sale deed consideration. The High Court found no illegality or impropriety in the impugned order and dismissed the revision application, upholding the trial court's order.

Headnote

A) Civil Procedure - Court Fees - Valuation - Section 8 of Maharashtra Court-Fees Act, 1959 - Discretionary Power - The trial court has discretion under Section 8 to inquire into valuation of suit property; it is not mandatory to hold such inquiry merely because a party applies. The court may refuse if it finds no reason to doubt the plaintiff's valuation. (Paras 2-4)

B) Civil Procedure - Revision - Jurisdiction - Section 115 of Code of Civil Procedure, 1908 - Interference with Discretionary Order - A revisional court will not interfere with a discretionary order of the trial court unless it is shown to be perverse, illegal, or based on no material. The trial court's refusal to hold valuation inquiry was within its discretion and not erroneous. (Paras 2-4)

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Issue of Consideration

Whether the trial court was bound to hold an inquiry into the market value of the suit property under Section 8 of the Maharashtra Court-Fees Act, 1959 upon the application of the defendants, and whether the impugned order rejecting such application suffers from any illegality, impropriety, or incorrectness warranting revision.

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Final Decision

The High Court dismissed the Civil Revision Application, upholding the trial court's order dated 6.9.2012 rejecting the defendants' application for inquiry into valuation. No order as to costs.

Law Points

  • Section 8 of Maharashtra Court-Fees Act
  • 1959 is discretionary
  • not mandatory
  • valuation for court fees and jurisdiction in suit for declaration that sale deed is void is based on the value of the subject matter as per plaintiff's valuation
  • trial court's refusal to hold inquiry into valuation is not illegal or improper if no jurisdictional error.
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Case Details

2015 LawText (BOM) (07) 191

Civil Revision Application No.27 of 2014

2015-07-06

A. P. Bhangale, J.

Shri D.N. Dani for Applicants, Shri A.M. Pande for Respondents

Ishwardas Asaram Deosinghani and Sau. Megha W/o Lal Sugangha

Kamalkishor Biharilal Kuswahe and Keltek Energies Limited

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Nature of Litigation

Civil Revision Application challenging order rejecting application for inquiry into valuation and court fees.

Remedy Sought

The applicants (defendants) sought revision of the trial court's order dated 6.9.2012 rejecting their application for inquiry into market value of suit property for proper court fees and jurisdiction.

Filing Reason

The defendants believed the suit was undervalued and wanted the court to determine correct market value under Section 8 of the Maharashtra Court-Fees Act, 1959.

Previous Decisions

The trial court (Civil Judge Junior Division, Katol) rejected the defendants' application on 6.9.2012.

Issues

Whether the trial court was bound to hold an inquiry into valuation under Section 8 of the Maharashtra Court-Fees Act, 1959 upon application by defendants. Whether the impugned order suffers from any illegality, impropriety, or incorrectness warranting interference under Section 115 CPC.

Submissions/Arguments

Applicants argued that under Section 8 of the Maharashtra Court-Fees Act, 1959, the trial court must inquire into valuation if a party applies, relying on Miss Aninha D'Costa vs. Mrs. Parvatibai M. Thakur. Respondents supported the trial court's order, contending that Section 8 is discretionary and the plaintiff's valuation based on sale deed consideration was proper.

Ratio Decidendi

Section 8 of the Maharashtra Court-Fees Act, 1959 confers discretion on the trial court to inquire into valuation of the suit; it is not mandatory to hold such inquiry merely because a party applies. The trial court's refusal to hold inquiry in the facts of the case was within its judicial discretion and not illegal or improper.

Judgment Excerpts

Though Section 8 of the Maharashtra Court-Fees Act enables the Court to examine valuation made in the suit and to ascertain the correct value of the suit pursuant to the inquiry which may be made, it is not really mandatory for the Court to do so under the said Section but is left to judicial discretion of the trial Court.

Procedural History

The plaintiff filed a suit for declaration that sale deed is void, illegal, and not binding. The defendants (applicants) filed an application for inquiry into valuation. The trial court rejected that application on 6.9.2012. The defendants filed Civil Revision Application No.27 of 2014 before the Bombay High Court, Nagpur Bench, which was heard and dismissed on 6.7.2015.

Acts & Sections

  • Maharashtra Court-Fees Act, 1959: Section 8
  • Code of Civil Procedure, 1908: Section 115
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