Bombay High Court Dismisses Revision Petition Challenging Valuation Order in Suit for Declaration of Ownership and Possession. Suit for declaration of exclusive ownership and possession of flat must be valued on market value under Section 6(iv)(d) of Bombay Court Fees Act, not under Section 6(4)(j) for specific performance.

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

The petitioner, Kiran Suresh Bhagiya, filed a Civil Revision Application under Section 115 of the Code of Civil Procedure, 1908, challenging an order dated 12 April 2017 passed by the Joint Civil Judge Senior Division, Pune, in Regular Civil Suit No.434 of 2016. The trial court had held that the valuation of the suit made by the petitioner-plaintiff was not proper and that the suit claim should have been valued as per Section 6(iv)(d) of the Bombay Court Fees Act. The petitioner had filed the suit under Sections 3 and 4 of the Maharashtra Ownership of Flats Act, 1963 (MOFA), seeking specific performance of an agreement dated 20 November 2006, and had affixed court fee under Section 6(4)(j) of the Bombay Court Fees Act. The respondents filed an application under Section 9-A of the CPC, contending that the suit property was commercial premises and the plaintiff sought declaration of exclusive ownership and possession, thus requiring valuation on market value under Section 6(iv)(d). The trial court rejected the petitioner's contention and ordered valuation on market price. The High Court, after hearing both sides, dismissed the revision petition, holding that the trial court's order was correct and did not suffer from any jurisdictional error. The court noted that the suit was not merely for specific performance but also for declaration of exclusive ownership and possession, which falls under Section 6(iv)(d) of the Bombay Court Fees Act. The revision was dismissed with no order as to costs.

Headnote

A) Civil Procedure - Court Fees - Valuation - Suit for Declaration of Ownership and Possession - Section 6(iv)(d) Bombay Court Fees Act, 1959 - The plaintiff filed a suit for specific performance of an agreement and declaration of exclusive ownership and possession of a flat. The trial court held that the suit must be valued on the market value of the flat under Section 6(iv)(d) of the Bombay Court Fees Act, not under Section 6(4)(j) for specific performance. The High Court upheld this, reasoning that the primary relief is for declaration of ownership and possession, which is not covered by Section 6(4)(j). (Paras 4-6)

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Issue of Consideration

Whether the suit for declaration of exclusive ownership and possession of a flat, filed under the Maharashtra Ownership of Flats Act, 1963, should be valued on the market value of the property under Section 6(iv)(d) of the Bombay Court Fees Act, or on the basis of the agreement value under Section 6(4)(j) of the said Act.

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Final Decision

The High Court dismissed the Civil Revision Application, upholding the trial court's order that the suit must be valued on the market value of the flat under Section 6(iv)(d) of the Bombay Court Fees Act. No order as to costs.

Law Points

  • Valuation of suit for declaration of ownership and possession must be on market value under Section 6(iv)(d) of Bombay Court Fees Act
  • not under Section 6(4)(j) for specific performance of agreement
  • Suit under MOFA for specific performance does not automatically entitle plaintiff to value suit under Section 6(4)(j) if relief includes declaration of ownership and possession
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Case Details

2018 LawText (BOM) (01) 70

Civil Revision Application No. 483 of 2017

2018-01-09

Dr. Shalini Phansalkar-Joshi, J.

Mr. Shivam Nagalia i/by Triyama Legal for Petitioner, Mr. Purushottam G. Chavan for Respondents

Kiran Suresh Bhagiya

M/s Kakade Construction Co.Pvt. Ltd & Suryakant Kakade & Associates

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Nature of Litigation

Civil Revision Application challenging order on valuation of suit and court fee.

Remedy Sought

Petitioner sought to set aside trial court order directing valuation on market value under Section 6(iv)(d) of Bombay Court Fees Act.

Filing Reason

Trial court held that suit for declaration of exclusive ownership and possession must be valued on market value, not under Section 6(4)(j) for specific performance.

Previous Decisions

Trial court order dated 12 April 2017 in RCS No.434/2016 below Exh.42.

Issues

Whether the suit for declaration of exclusive ownership and possession of a flat should be valued on market value under Section 6(iv)(d) of the Bombay Court Fees Act or on agreement value under Section 6(4)(j).

Submissions/Arguments

Petitioner argued that suit was under MOFA for specific performance, so court fee under Section 6(4)(j) was proper. Respondents contended that suit sought declaration of ownership and possession, requiring valuation on market value under Section 6(iv)(d).

Ratio Decidendi

A suit for declaration of exclusive ownership and possession of a flat, even if filed under MOFA, is not a suit for specific performance simpliciter; the primary relief is for declaration of ownership and possession, which must be valued on the market value of the property under Section 6(iv)(d) of the Bombay Court Fees Act, not under Section 6(4)(j).

Judgment Excerpts

By this Revision Petition, filed under Section 115 of Code of Civil Procedure, the petitioner is challenging the order dated 12th April, 2017, passed by the Joint Civil Judge Senior Division, Pune, in Regular Civil Suit No.434 of 2016, below Application Exh.42, thereby holding that the valuation of the suit made by the petitioner-plaintiff is not proper and the suit claim should have been valued as per Section 6(iv) (d) of the Bombay Court Fee Act.

Procedural History

The petitioner filed Regular Civil Suit No.434 of 2016 in the court of Joint Civil Judge Senior Division, Pune, seeking specific performance of agreement and declaration of ownership and possession. The respondents filed an application under Section 9-A CPC challenging valuation. The trial court allowed the application on 12 April 2017, directing valuation on market value. The petitioner filed Civil Revision Application No.483 of 2017 in the Bombay High Court, which was dismissed on 9 January 2018.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 115, Section 9-A
  • Bombay Court Fees Act, 1959: Section 6(iv)(d), Section 6(4)(j)
  • Maharashtra Ownership of Flats Act, 1963: Sections 3, 4
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