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Supreme Court of India

JAGANNATH AMINversusSEETHARAMA (DEAD) BY LRS. AND ORS.

Citation
2006 INSC 813
Decided
9 November 2006
Disposal
Appeal(s) allowed

Holding

Court fee in a partition suit is payable under Section 35(2) of the Karnataka Court Fee and Suit Valuation Act, 1958 unless the plaint specifically averts that the plaintiff is excluded from joint possession.

Summary

Jagannath Amin's mother filed a suit for partition of scheduled agricultural land, claiming she was a co‑owner and therefore in constructive possession of the property. The plaintiff argued that court fees should be computed under Section 35(2) of the Karnataka Court Fee and Suit Valuation Act, 1958, i.e., on the deemed market value, whereas the defendants contended the land was a house site and that Section 35(1) requiring payment on the actual market value applied. The trial court and the Karnataka High Court held that Section 35(1) was applicable. On appeal, the Supreme Court held that Section 35(2) governs where the plaintiff is not expressly excluded from joint possession, a presumption that stands unless the plaint specifically averts exclusion. Citing *Neelavathi* and *Mis Commercial Aviation* cases, the Court set aside the High Court order and allowed the appeal, without ordering costs.

Issues considered

  • Whether Section 35(1) of the Karnataka Court Fee and Suit Valuation Act, 1958 applies to a partition suit where the plaintiff is a co‑owner and claims constructive possession.
  • Whether Section 35(2) applies, requiring court fee on the deemed market value, when the plaintiff is not excluded from joint possession.
  • Whether the plaint contains a clear and specific averment of exclusion from joint possession, a prerequisite for Section 35(1) to apply.
  • Whether the nature of the property (agricultural land versus house site) influences the applicability of Sections 35(1) or 35(2).
  • Whether the plaintiff may value his claim for court‑fee purposes under Section 7(iv) and the court must accept that valuation.

Legislation cited

Subjects

court feepartition suitconstructive possessionKarnataka Court Fee and Suit Valuation Actsection 35section 7valuation of reliefjoint possessionagricultural propertylegal presumption

Judgment

A                                JAGANNA TH AMIN
                                           v.
                    SEETHARAMA (DEAD) BY LRS. AND ORS.

                                 NOVEMBER 9, 2006

B            [ARIJIT PASAYAT AND LOKESHWAR SINGH PANTA,JJ.]


         Karnataka Court Fee and Suit Valuation Act, 1958-Sections 7(2)(d)
   and 35(1) & (2)-Suit for partition-Computation of court fees-Piea of
C plaintiff that property is agricultural property and being co-owner, presumed
   to be in constructive possession, court fees under section 35(2) payable on
  deemed market value-Defendant's plea that prop~rty is a house site and
  court fees under section 35(1) payable on actual market value-Courts
   below holding that section 35(1) applicable-Sustainability of-Held: Court
  fees is payable under section 35(1) when there is a clear and specific
D averment in the plaint that the plaintiff is in 'excluded' possession of the joint
  property--Jn the case of co-owners, possession of one is possession of all
  unless ouster or exclusion is proved-Unless right to a share and nature of
  the property is not disputed, law presumes that he is in joint possession-
  Thus, order of courts below cannot be sustained.

E         Plaintiff-appellant's mother filed suit for partition of the scheduled
    property. It was contended that being a co-owner, under the law she is
    presumed to be in constructive possession of the property and as sue~ court
    fee under section 35(2) of the Karnataka Court Fee and Suit Valuation Act,
    1958 is to be paid on the deemed market value and not on actual market value;
F   and that the property being agricultural property, suit was valued under section
    7(2)(d) of the .Act and court fee of Rs.200/- was paid under section 35(2) of
    the Act. Defendants contended that the property is a house site and as such
    court fee is to be paid under section 35(1) of the Act on the actual market
    value. Trial court held that section 35(1) was applicable. In revision petition,
    High CQurt held that though it is true that there is a graded scale under
G   section 35(2) which applies to partition suits etc. trial court rightly went into
    special requirements and held that section 35(1) would apply to the facts of
    the instant case. Hence the present appeal.

          Allowing the appeal, the court

H                                          778
            JAGANNATH AMIN v. SEETHARAMA (DEAD) BY LRS.                        779
      HELD: 1.1 In view of *Neelavathi's case and **Mis Commercial A
Aviation's case, the order of trial court as affirmed by the High Court cannot
be sustained. [785-A-B)

        1.2 In *Neelavathi 's case this court held that the court fee is payable
under section 37(l) of the Tamil Nadu Court Fee and Suit Valuation Act, 1958,
which is pari materia with section 35(1) of the Karnataka Court Fee and Suit B
Valuation Act, 1958, if the plaintiff is 'excluded' from possession of the
property. In the case of co-owners, the possession of one is in law possession
of all, unless ouster or exclusion is proved. To continue to be in joint possession
in law, it is not necessary that the plaintiff should be in actual possession of
the whole or part of the property. So long as his right to a share and the nature C
of the property as joint is not disputed the law presumes that he is in joint
possession unless he is excluded from such possession. Before the plaintiffs
could be called upon to pay court fee under section 37(1) of the Act, it is
necessary that on a reading of the plaint, there should be a clear and specific
averment in the plaint that they had been 'excluded' from joint possession to
which they are entitled to in law. [784-D-G)                                        D
       1.3 In **Mis Commercial Aviation's case this Court held that the
conversion of the plaintifrs undivided share in the joint family property into
his separate share cannot be easily valued in terms of rupees with any
precision or definiteness. The legislature left it to the option of the plaintiff
to value his claim for the payment of court-fees and the same has ordinarily           E
to be accepted by the court in computing the court-fees payable in respect of
the said relief. The Court did not consider whether the plaintiff had been given
an absolute right or option to place any valuation whatever on his relief under
the provision of Section 7(iv) of the Tamil Nadu Court Fee and Suit Valuation
Act, 1958, but the difficulty that ,-,ould be felt by the Court in exercising its      p
power under Order VII, Rule l l(b) of the CPC is that if it is unable to
determine the correct value of the relief, it cannot direct the plaintiff to correct
the valuation. Order VII, Rule ll(b) contemplates correct valuation and not
approximate correct valuation and such correct valuation of the relief has to
be determined by the C~urt. [783-D)
                                                                                       G
     *Neelavathi and Ors. v. N. Natarajan and Ors., AIR (1980) SC 691 and
**Mis. Commercial Aviation and Travel Company and Ors. v. Mrs. Vim/a
Pannala/, AIR (1988) SC 1636, relied on.

      T.K. Srinivasamurthy & Ors. v. T. Seetharamaiah and Ors., AIR (1990)
                                                                                       H
    780                    SUPREME COURT REPORTS [2006] SUPP. 8 S.C.R.

A   Karnataka 149, referred to.

          CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4739 of2006.

         From the Order dated 22.3.2002 of the High Court 'of Karnataka at
    Banglore in C.R.P. No. 217/200 l.
B
          N.D.B. Raju, Bharathi R. and Guntur Prabhakar, for the Appellant.

          V.B. Joshi, M.V. Kini and Ravi Kini for the Respondents.

          The Judgment of the Court was delivered by
c         ARIJIT PASAYAT, J. Leave granted.

          Challenge in this appeal is to the order passed by a learned single judge
    of the Kamataka High Court dismissing the Civil Revision Petition filed by
    the appellant.
D          Challenge before the High Court was to the order passed by learned
    First Additional Civil Judge, Junior Division, Mangalore, holding that Section
    35(1) of the Karnataka Court Fee and Suit Valuation Act, 1958 (in short the
    'Act') was applicable and not Section 35(2) of the said Act in a suit for
    partition relating to agricultural land. Originally the suit was filed by the
E   appellant's mother. She had filed the suit for partition of the scheduled
    property claiming that the same should be divided into two equal shares by
    meets and bounds through the process of Court. Plaintiff had filed suit under
    Section 7(2)(d) of the Act and paid court fee of Rs.200/- under Section 35(2)
    of the Act. Four defendants filed written statement. Defendant Nos. 2 and 3
    also filed written statement separately. After hearing the appellant, learned
F   First Additional Civil Judge framed several issues on 19.12.1998. Appellant
    contended before the trial court that being a co-owner under the law she is
    presumed to be in constructive possession of the property and as such court
    fee is to be paid on the deemed market value and not on actual market value.
    Plaint scheduled property being agricultural property as such court fee is
G   valued under Section 7(2)(d) of the Act and she cannot be compelled to value
    the said under Section 35(1) of the Act being a co-owner in respect of the
    plaint scheduled property along with the defendants. Defendants took the
    stand that the property is not agricultural property and is a house site and
    as such court fee under Section 35(1) of the Act is to be paid on the actual
     market value and not on deemed market value.
H
     JAGANNATH AMIN v. SEETHARAMA (DEAD) BY LRS. (PASA YAT,J.] 781

         When PW I was examined during the cross examination of the said A
  witness the defendant No. 4 filed an I.A. under Order XIV, Rule 2(2) of the
  Code of Civil Procedure, 1908 (in short the 'C.P.C.') for framing additional
   issues and the same was allowed. Accordingly three additional issues were
   framed. Thereafter, defendant No.4 again filed an I.A. under Order XIV Rule
  2(2) CPC for taking up additional issue No.3 i.e. regarding payment of court B
  fee as preliminary issue. The trial court was of the view that additional issue
· No.3 cannot be tried as a preliminary issue and posted the matter for
  consideration of all issues. Challenging the said order revision was filed
  before the High Court which disposed of the application stating that the
  defendant will be at liberty to adduce evidence on the court fee issue as
  permissible under law. Thereafter the matter proceeded. Again four defendants C
  preferred revision before the High Court questioning direction of the trial
  court to adduce evidence on all issues. The High Court directed the trial court
  to treat additional issue no.3 as a preliminary issue and that is how the said
  issue was framed as preliminary issue. The trial court held that Section 35(1)
  of the Act was applicable and not Section 35(2) of the Act. The same was
  challenged by the appellant before the High Court. As noted above, the High D
  Court dismissed the revision petition. The High Court held that though it is
  true that there is a graded scale under Section 35(2) of the Act which applies
  to partition suits etc. the trial court had "perhaps" rightly gone into special
  requirements and has concluded that Section 35(1) would apply to the facts
 ~~~~~                                                                         E
      Learned cou:tsel for the appellant submitted that the approach of the
 High Court is clearly erroneous.

     Learned counsel for the respondents on the other hand supported the
judgments of the trial court and the High Court.                               p
      Identical issues came for consideration before the same High Court in
 T.K. Srinivasamurthy & Ors. v. T. Seetharamaiah and Ors., AIR (1990)
 Karnataka 149. In para 4 of the judgment it was nored as follows:

            "That question came up for consideration in CRP 309 of 1987 G
        disposed of on Dec. 2nd, 1988 by one of us. Following the decision
        of Supreme Court in the case of Neelavathi v. Natarajan (1980) 1
        Kant U (SN) Item 126: (AIR 1980 SC 691), concerning S. 37 of the Tamil
        Nadu Court Fees and Suits Valuation Act, which is in pari materia
        with S. 35 of the Act, it was held that in a partition suit, plaintiff or
                                                                              H
    782                    SUPREME COURT REPORTS [2006] SUPP. 8 S.C.R.

A          plaintiffs was only required to set out the joint family properties in
           respect of which she or they sought partition and separate possession
           and pay court fee in accordance with sub-sec. (2) of S. 35 of the Act.
           The Supreme Court had expressed the following view in Neelavathi's
           case (AIR 1980 SC 691):

B               "126. Court fee payable under S. 37 (1), T.N. Act, ifthe plaintiff
           is 'excluded' possession of the joint property. The general principle
           of law is that in the case of co-owners, possession of one is possession
           of all unless ouster or exclusion is piOved. To continue to be in joint
           possession in law it is not necessary that the plaintiff should be in
           actual possession of the whole or part of the property. Equally it is
c          not necessary that he should be getting a share or some income from
           the property. So long as his right to a share and the nature of the
           property is not disputed, the law presumes that he is in joint
           possession. To apply S. 37(1) there should be a clear and specific            .;
           averment in the plaint that Plaintiff has been excluded from joint
D          possession. An avennent that remain in j9int possession would not
           amount to exclusion from possession."

          Similar provisions were examined by this Court in Mis. Commercial
    Aviation and Travel Company and Ors. v. Mrs. Vim!a Pannalal, AIR (1988)
    SC 1636 it was noted as follows:
E
                "In this connection, we may refer to a five Judge Bench decision
           of this Court in S. Rm. Ar. S. Sp. Sathappa Chettiar v. S. Rm. Ar. Rm.
           Ramanathan Chettiar, [1958] SCR 1021(1024): (AIR 1958 SC 245 at
           pp. 251-52) Gajendragadkar, J. speaking for the Court observed as
           follows:           ·
F
                 "If the scheme laid down for the computation of fees payable in
                 suits covered by the several sub-sections of S. 7 is considered
                 it would be clear that in respect of suits falling under sub-s. (iv),
                 a departure has been made and liberty has been given to the
                 plaintiff to value his claim for the purposes of court-fees. The
G                theoretical basis of this provision appears to be that in cases in
                 which the plaintiff is given the option to value his claim, it is
                 really difficult to value the claim with any precision or
                .definiteness. Take for instanc.e the claim for partition where the
                 plaintiff seeks to enforce his right to share in any property on
                 the ground that it is joint family property. The basis of the claim
H
-       JAGANNATH AMIN v. SEETHARAMA (DEAD) BY LRS. [PASA YAT, J.] 783

                 is that the property in respect of which a share is claimed is joint A
                 family property. In other words, it is property in which the
                 plaintiff has an undivided share. What the plaintiff purports to
                 do by making a claim for partition is to ask the court to give him
                 certain specified properties separately and absolutely on his
                 own account for his share in lieu of his undivided share in the
                 whole property. Now it would be clear that the conversion of the B
                 plaintiffs alleged undivided share in the joint family property
                 into his separate share cannot be easily valued in terms of
                 rupees with any precision or definiteness. That is why legislature
                 has left it to the option of the plaintiff to value his claim for the
                 payment of court-fees. It really means that in suits falling under C
                 S. 7(iv)(b) the amount stated by the plaintiff as the value of his
                 claim for partition has ordinarily to be accepted by the court in
                 computing the court-fees payable in respect of the said relief. In
                 the circumstances of this case it is unnecessary to consider
                 whether, under the provisions of this section, the plaintiff has
                 been given an absolute right or option to place any valuation D·
                 whatever on his relief."

                 In the above decision, this Court took the view that the conversion
             of the plaintiffs undivided share in the joint family property into his
          . separate share cannot be easily valued in terms of rupees witii any
           "precision or definiteness. It is true that the Court did not consider E
            whether the plaintiff had been given an absolute right or option to
            place any valuation whatever on his relief under the provision of
            Section 7(iv) of the Court-fees Act, but the difficulty that would be
            felt by the Court in exercising its power under Order VII, Rule 11 (b)
            of the Code of Civil Procedure is that if it is unable to determine the p
            correct value of the relief, it cannot direct the plaintiff to correct the
            valuation. Order VII, Rule l l(b) contemplates correct valuation and
            not appro,<imate correct valuation and such correct valuation of the
            relief has to be detennined by the Court. If the Court cannot determine
            the correct valuation of the relief claimed, it cannot require the plaintiff
            to correct the valuation and, consequently. Order VII, Rule l l(b) will G
            not be applicable."

          Reference was also made to the decision in Neelavathi and Ors. v. N.
    Natarajan and Ors., AIR (1980) SC 691. ln para 8 this court while considering
    the identical provision of the Tamil Nadu Court Fee and Suits Valuation Act,     H
A
    784
    1955 stated as follows:
                           SUPREME COURT REPORTS [2006] SUPP. 8 S.C.R.
                                                                                          -
              "8. Section 37 of the Tamil Nadu Court Fees and Suits Valuation
           Act relates to Partition Suits. Sec. 37 provides as follows:

               "3 7 (1) In a suit for partition and separate possession of a share
B          of joint family property or of property owned, jointly or in common,
           by a plaintiff who has been excluded from possession of such property,
           fee shall be computed on the market value of the plaintiffs share.

               "3 7 (1) In a suit for partition and separate possession of joint
           family property or property owned, jointly or in common by a plaintiff
c          who is in joint possession of such property, fee shall be paid at the
           rates prescribed."

                 It will be seen that the Court Fee is payable under Section 37 (1)
            if the plaintiff is "excluded" from possession of the property. The
            plaintiffs who are sisters of the defendants, claimed to be members of
D           the joir,t family, and prayed for partition alleging that they are in joint
            possession. Under the proviso to Section 6 of the Hindu Succession
            Act, 1956 (Act 30 of 1956) the plaintiffs being the daughters of the
           male Hindu who died after the commencement of the Act, having at
           the time of the death an interest in the mit~shara coparcenary property,
            acquired an interest by devolution under the Act. It is not in dispute
E           that the plaintiffs are entitled to a share. The property to which the
            plaintiffs are entitled is undivided 'joint family property'• though not
            in the strict sense of the term. The general principle of law is that in
            the case of co-owners, the possession of one is in law possession of
            all, unless ouster or exclusion is proved. To continue to be in joint
F           possession in law, it is not necessary that the plaintiff should be in
            actual possession of the whole or part of the property. Equally it is
            not necessary that he should be getting a share or some income from
            the property. So long as his right to a share and the nature of the
            property as joint is not di,;puted the law presumes that he is in joint
            possession unless he is ex1. :- ded from such possession. Before the
G           plaintiffs could be called upon ,;:; µay court fee under Sec. 37 ( l) of
           the ,\ct on the ground that they had been excluded from possession,
            it is necessary that on a reading of the plaint, there should be a clear
           and specific averment in the plaint that they had been "excluded" from
           joint possession to which they are entitled to in law. The averments
H          in the plaint that the plaintiff could not remain in joint possession as
       JAGANNATH AMIN v. SEETHARAMA (DEAD) BY LRS. [PASA YAT, J.] 785

          he was not given any income from the joint family property would not A
          amount to his exclusion from possession. We are unable to read into
          the plaint a clear and specific admission that the plaintiff had been
          excluded from possession."

      In view of what has been stated in Mis Commercial Aviation's case
(supra) and Neelavathi 's case (supra) the view of the trial judge as affirmed   B
by the High Court cannot be sustained.

     The order of the High Court is set aside. The appeal is allowed but
without any order as to costs.

N.J.                                                         Appeal allowed.     C


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