High Court of Karnataka Allows Appeal Against Dismissal of Suit for Non-Payment of Court Fee - Remands for Fresh Consideration on Valuation Issue. The court upheld the remand order of the lower appellate court, directing the trial court to decide the preliminary issue regarding valuation and court fee afresh after hearing both sides.

High Court: Karnataka High Court Bench: KALABURAGI
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Case Note & Summary

The respondents (plaintiffs) filed a suit for declaration of title and perpetual injunction in respect of plaint schedule property. The appellants (defendants) contested the suit. Issue No.3 regarding improper valuation and insufficient court fee was treated as a preliminary issue. After evidence, the trial court passed an order on 29.06.2010 directing the plaintiffs to furnish fresh valuation slip and pay court fee on the actual market value of the suit property. This order remained unchallenged. Despite granting sufficient time and adjourning the case on 24 occasions, the plaintiffs did not comply. Consequently, on 08.08.2011, the suit was dismissed. The plaintiffs appealed to the Fast Track Court-II at Bidar, which allowed the appeal and set aside the dismissal, remanding the suit for fresh disposal. The defendants then filed this Miscellaneous Second Appeal under Order 43 Rule 1(u) read with Section 104 CPC. The High Court noted that the trial court's order dated 29.06.2010 had become final as it was not challenged. However, the dismissal of the suit for non-compliance without giving a final opportunity was considered harsh. The High Court upheld the remand order of the lower appellate court, directing the trial court to decide the preliminary issue regarding valuation and court fee afresh after hearing both sides and giving the plaintiffs an opportunity to comply with the earlier order. The appeal was dismissed with no order as to costs.

Headnote

A) Civil Procedure - Court Fee - Valuation - Suit for Declaration and Injunction - Preliminary Issue - The trial court treated Issue No.3 regarding improper valuation and insufficient court fee as a preliminary issue and after evidence directed the plaintiffs to furnish fresh valuation and pay court fee on actual market value. Despite multiple adjournments, the plaintiffs failed to comply, leading to dismissal of the suit. The lower appellate court set aside the dismissal and remanded the matter. The High Court held that the trial court's order directing payment of court fee on market value was not challenged and became final, but the dismissal without giving a final opportunity was harsh; hence, the appellate court's remand order was upheld with a direction to the trial court to decide the valuation issue afresh after hearing both sides. (Paras 1-6)

B) Civil Procedure - Remand - Order 41 Rule 23 CPC - The lower appellate court, while setting aside the dismissal, remanded the suit for fresh disposal. The High Court found no error in the remand order as the trial court had not decided the preliminary issue on merits but dismissed the suit for non-compliance. The remand was held to be proper to enable the trial court to decide the valuation issue after giving the plaintiffs an opportunity to comply. (Paras 4-6)

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Issue of Consideration

Whether the trial court was justified in dismissing the suit for non-compliance of the order directing payment of court fee on the actual market value of the suit property, and whether the lower appellate court was correct in setting aside the dismissal and remanding the matter.

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Final Decision

The High Court dismissed the appeal, upholding the remand order of the lower appellate court. The trial court was directed to decide the preliminary issue regarding valuation and court fee afresh after hearing both sides and giving the plaintiffs an opportunity to comply with the earlier order. No order as to costs.

Law Points

  • Court fee valuation
  • Suit for declaration and injunction
  • Preliminary issue
  • Non-compliance of order
  • Dismissal of suit
  • Remand for fresh consideration
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Case Details

2016 LawText (KAR) (12) 28

Miscellaneous Second Appeal No.825/2012

2016-12-02

A.N. Venugopala Gowda

Sri Sachin M. Mahajan (for appellants), Sri M. Ashok Kumar (for respondents)

Vaijinath S/o Nagshetty Kaji, Shivasharanappa S/o Nagshetty Kaji, Revanappa S/o Nagshetty Kaji

Shankramma W/o Mahadappa Kaji (since deceased by LRs: Shobha, Suggal Devi, Vijayalaxmi, Padmavati, Sunita, Anita) and Jagadish S/o Mahadappa Kaji

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Nature of Litigation

Civil suit for declaration of title and perpetual injunction

Remedy Sought

Plaintiffs sought decree of declaration of title and perpetual injunction in respect of plaint schedule property

Filing Reason

Plaintiffs claimed title to the property and sought to restrain defendants from interfering

Previous Decisions

Trial court dismissed suit on 08.08.2011 for non-compliance of order dated 29.06.2010 directing payment of court fee on market value; lower appellate court set aside dismissal and remanded on 31.10.2012

Issues

Whether the trial court was justified in dismissing the suit for non-compliance of the order directing payment of court fee on actual market value? Whether the lower appellate court correctly exercised its power of remand under Order 41 Rule 23 CPC?

Submissions/Arguments

Appellants argued that the trial court's order dated 29.06.2010 had become final and the suit was rightly dismissed for non-compliance. Respondents contended that the dismissal was harsh and the lower appellate court correctly remanded the matter for fresh consideration.

Ratio Decidendi

The trial court's order directing payment of court fee on market value became final as it was not challenged. However, dismissal of the suit for non-compliance without giving a final opportunity was harsh. The lower appellate court's remand order was proper to enable the trial court to decide the valuation issue afresh after hearing both sides.

Judgment Excerpts

The suit was filed on 21.08.2004 to pass a decree of declaration of title and perpetual injunction in respect of the plaint schedule property. Issue No.3 'Whether the suit is improperly valued and the court fee paid is insufficient?' was treated as a preliminary issue and was subjected to trial. An Order dated 29.06.2010 was passed and the plaintiffs directed to furnish fresh valuation slip and pay court fee on the actual market value of the suit property. Despite granting sufficient time and the case adjourned on 24 occasions, there being non compliance, on 08.08.2011, the suit was dismissed.

Procedural History

Suit filed on 21.08.2004; written statement filed on 25.10.2004; preliminary issue framed; order dated 29.06.2010 directing payment of court fee on market value; suit dismissed on 08.08.2011 for non-compliance; appeal filed in Fast Track Court-II, Bidar (MA No.67/2011) which allowed appeal and remanded on 31.10.2012; present Miscellaneous Second Appeal filed on 02.12.2016.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order 43 Rule 1(u), Section 104
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