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Supreme Court of India

SUHRID SINGH @ SARDOOL SINGHversusRANDHIR SINGH & ORS.

Citation
2010 INSC 180
Decided
29 March 2010
Disposal
Appeal(s) allowed

Holding

When a non‑executant seeks a declaratory decree with consequential relief, the court fee is computable under Section 7(iv)(c) read with Section 7(v) of the Court Fees Act, not on the sale consideration.

Summary

Suhrid Singh filed a suit seeking a declaration that certain sale deeds were void as they did not bind the co‑parcenary, along with joint possession and injunction relief. The trial court held that the suit sought cancellation of the deeds and required ad‑valorem court fee based on the sale consideration, a view affirmed by the High Court. On appeal, the Supreme Court examined whether the prayer was for cancellation or for a declaratory decree with consequential relief, and whether the plaintiff, a non‑executant, was liable to pay a fixed fee or an ad‑valorem fee. The Court held that a non‑executant seeking a declaration and possession must pay court fee under Section 7(iv)(c) read with Section 7(v) of the Court Fees Act, not the fee on the sale consideration. Consequently, the orders directing payment of fee on the sale consideration were set aside and the trial court was directed to recompute the fee accordingly. The appeals were allowed.

Issues considered

  • What court fee is payable for a suit seeking a declaration that sale deeds are void and consequential relief of joint possession and injunction, when the plaintiff is a non‑executant of the deeds?

Legislation cited

Subjects

court feedeclaratory decreeconsequential reliefsale deednon‑executantcancellation vs declarationSection 7 Court Fees Actco‑parcenarypossessioninjunction

Judgment

                    [201 O] 3 S.C.R. 1121


           SUHRID SINGH @ SARDOOL SINGH                           A
                         v.
               RANDHIR SINGH & ORS.
           (Civil Appeal Nos . 2811-2813 of 2010)
                      MARCH 29, 2010
                                                                  B
       [R.V. RAVEENDRAN AND R.M. LODHA, JJ.]

      Court Fees Act, 1870 - s. 7(iv)(c) and (v) - Court fee -
Computation of - In suits for a declaratory decree and
consequential benefits - Filing of civil suit - Prayer for        C
declaration that sale deed not binding on co-parcenary and
for joint possession and court fee paid u/s. 7(iv)(c) - Courts
below holding that the prayer was to seek cancellation of sale
deeds and thus, court fee to be paid on the sale consideration
mentioned in sale deeds - On appeal, held: Prayer was not         D
for cancellation of sale deed but for a declaration that sale
deed not binding on co-parcenary and for joint possession -
Plaintiff was non-executant of sale deed - Thus, court fee was
computable u/s. 7(iv)(c) - Orders of courts below set aside.
                                                                  E
     The question which arose for consideration in these
appeals is as to what is the court fee payable in regard
to the prayer for a declaration that the sale deeds were
void and not 'binding on the co-parcenary', and for the
consequential relief of joint possession and injunction.
                                                                  F
    Allowing the appeals, the Court

     HELD: 1.1 Where the executant of a deed wants it to
be annulled, he has to seek cancellation of the deed. But
if a non-executant seeks annulment of a deed, he has to           G
seek a declaration that the deed is invalid, or non-est, or
illegal or that it is not binding on him. There is a difference
between a prayer for cancellation and declaration in
regard to a deed of transfer/conveyance. In essence in
                             1121                                 H
    1122   SUPREME COURT REPORTS               [2010] 3 S.C.R.

A both the cases parties may be suing to have the deed set
  aside or declared as non-binding. But the form is different
  and court fee is also different. If the executant of the deed
  seeks cancellation of the deed, he has to pay ad-valorem
  court fee on the consideration stated in the sale deed. If
B the non-executant is in possession and sues for a
  declaration that the deed is null or void and does not bind
  him or his share, he has to merely pay a fixed court fee
  of Rs. 19.50 under Article 17(iii) of Second Schedule of
  the Court Fees Act, 1870. But if the non-executant is not
c in possession, and he seeks not only a declaration that
  th~ale deed is invalid, but also the consequential relief
  of possession, he has to pay an ad-valorem court fee as
  provided under section 7(iv)(c) of the Act. Section 7(iv)(c)
  of the Act provides that in suits for a declaratory decree
  with consequential relief, the court fee shall be computed
0
  according to the amount at which the relief sought is
  valued in the plaint. The proviso thereto makes it clear
  that where the suit for declaratory decree with
  consequential relief is with reference to any property,
  such valuation shall not be less than the value of the
E property calculated in the manner provided for by clause
  (v) of section 7. [Para 6] [1126-C-H; 1127-A-B]
       1.2. In the instant case, there is no prayer for
  cancellation of the sale deeds. The prayer is for a
F declaration that the deeds do not bind the "co-parcenery"
  and for joint possession. The plaintiff in the suit was not
  the executant of the sale deeds. Therefore, the court fee
  was computable under section 7(iv)(c) of the Act. The trial
  court and the High Court were not justified in holding that
G the effect of the prayer was to seek cancellation of the
  sale deeds and therefore, court fee had to be paid on the
  sale consideration mentioned in the sale deeds. Thus, the
  orders of the trial court and the High Court directing
  payment of court fee on the sale consideration under the
H sale deeds are set aside and trial court is directe-d to
     SUHRID SINGH @ SARDOOL SINGH v. RANDHIR 1123
                   SINGH & ORS.

calculate the court fee in accordance with section 7{iv)(c)            A
read with section 7{v) of the Act. [Paras 7 and 8] [1127-B-
E]
    CIVIL APPELLATE JURISDICTION : Civil Appeal Nos.
2811-2813 of 2010.
                                                                       B
      From the Judgment & Order dated 19.3.2007 order dated
11.2.2008 and 16.5.2008 passed by the High Court of Punjab
and Haryana at Chandigarh in CR No. 1482/2007 and RA No.
35 Cll/2007 in Civil Revision No. 1482/2007 and C.M. No.
9445-C-11/2008 in C.M. 7001-C-11/2008 in R.A. 35-C-11/2007 in          C
Civil Reivision 1482/2007.
      Suhrid Singh appellant in person.
    Labh Singh Bhangu and Madhu Moolchandani for the
Respondents.                                                           D
      The Judgment of the Court was delivered by
      R.V. RAVEENDRAN, J. 1. Leave granted.

     The appellant filed a suit (Case No.381/2007) on the file
of the Civil Judge, Senior Division, Chandigarh for several            E
reliefs. The plaint contains several elaborate prayers,
summarizes below :
      (i) for a declaration that two houses and certain agricultural
      lands purchased by his father S. Rajinder Singh were co-         F
      parcenary properties as they were purchased from the sale
      proceeds of ancestral properties, and that he was entitled
      to joint possession thereof;

      (ii) for a declaration that the will dated 14. 7.1985 with the
      codicil dated 17 .8.1988 made in favour of the third             G
      defendant, and gift deed dated 10.9.2003 made in favour
      of fourth defendant were void and non-est "qua the co-
      parcenary";

      (iii) for a declaration that the sale deeds dated 20.4.2001,     H
     1124    SUPREME COURT REPORTS                   [2010] 3 S.C.R.


A        24.4.2001 and 6.7.2001 executed by his father S. Rajinder
         Singh in favour of the first defendant and sale deed dated
         27.9.2003 executed by the alleged power of attorney
         holder of S. Rajender Singh in favour of second defendant,
         in regard to certain agricultural lands (described in the
B        prayer), are null and void qua the rights of the "co-
         parcenary", as they were not for legal necessity or for
         benefit of the family; and

         (iv) for consequential injunctions restraining defendants 1
         to 4 from alienating the suit properties.
c
        2. The appellant claims to have paid a court fee of
   Rs.19.50 for the relief of declaration, Rs.117/- for the relief of
  joint possession, and Rs.42/- for the relief of permanent
   injunction, in all Rs.179/-. The learned Civil Judge heard the
D appellant-plaintiff on the question of court fee and made an
  order dated 27.2.2007 holding that the prayers relating to the
  sale deeds amounted to seeking cancellation of the sale deeds
  and therefore ad valorem court fee was payable on the sale
  consideration in respect of the sale deeds.
E
        3. Feeling aggrieved the appellant filed a revision'
  contending that he had paid the court fee under section 7(iv)(c)
  of the Court-fees Act, 1870; and that the suit was not for
  cancellation of any sale deed and therefore the court fee paid
  by him was adequate and proper. The High Court by the
F impugned order dated 19.3.2007 dismissed the revision
  petition holding that if a decree is granted as sought by the
  plaintiff, it would amount to cancellation of the sale deeds and
  therefore, the order of the trial court did not call for interference.
  The application filed by the appellant for review was dismissed
G on 11.2.2008. The application for recalling the order dated
  19.3.2007 was dismissed on 24.4.2008 and further application
  for recalling the order dated 24.4.2008 was dismissed on
  16.5.2008. Feeling aggrieved, the appellant has filed these
  appeals by special leave.
H
  SUHRID SINGH@ SARDOOL SINGH v. RANDHIR 1125
     SINGH & ORS. [R.V. RAVEENDRAN, J.]

     4. The limited question that arises for consideration is what    A
is the court fee payable in regard to the prayer for a declaration
that the sale deeds were void and not 'binding on the co-
parcenary', and for the consequential relief of joint possession
and injunction.
                                                                      B
     5. Court fee in the State of Punjab is governed by the Court
Fees Act, 1870 as amended in Punjab ('Act' for short). Section
6 requires that no document of the kind specified as chargeable
in the First and Second Schedules to the Act shall be filed in
any court, unless the fee indicated therein is paid. Entry 17(iii)
of Second Schedule requires payment of a court fee of Rs.19/          C
50 on plaints in suits to obtain a declaratory decree where no
consequential relief is prayed for. But where the suit is for a
declaration and consequential relief of possession and
injunction, court fee thereon is governed by section 7(iv)(c) of
the Act which provides :                                              D

    "7. Computation of fees payable in certain suits : The
    amount of fee payable under this Act in the suits next
    hereinafter mentioned shall be computed as follows :

    (iv) in suits - x x x x (c) for a declaratory decree and·-...... E
    consequential relief.- to obtain a declaratory decree or
    order, where consequential relief is prayed, x x x x x
    according to the amount at which the relief sought is valued
    in the plaint or memorandum of appeal.
                                                                      F
    In all such suits the plaintiff shall state the amount at which
    he values the relief sought:

    Provided that minimum court-fee in each shall be thirteen
    ru~~-                                                             G
    Provided further that in suits coming under sub-clause (c),
    in cases where the relief sought is with reference to any
    property such valuation shall not be less than the value of
    the property calculated in the manner provided for by
    clause (v) of this section."                                      H
      1126     SUPREME COURT REPORTS                     [2010] 3 S.C.R.


 A The second proviso to section ?(iv) of the Act will apply in this
    case and the valuation shall not be less than the value of the
    property calculated in the manner provided for by clause (v) of
    the said section. Clause (v) provides that where the relief is in
    regard to agricultural lands, court fee should be reckoned with
 B reference to the revenue payable under clauses (a) to (d)
    thereof; and where the relief is in regard to the houses, court
    fee shall be on the market value of the houses, under clause
  . (e) thereof.

           6. Where the executant of a deed wants it to be annulled,
 C    he has to seek cancellation of the deed. But if a non-executant
      seeks annulment of a deed, he has to seek a declaration that
      the deed is invalid, or non-est, or illegal or that it is not binding
      on him. The difference between a prayer for cancellation and
      declaration in regard to a deed of transfer/conveyance, can be
 D    brought out by the following illustration relating to 'A' and 'B' -
      two brothers. 'A' executes a sale deed in favour of 'C'.
      Subsequently 'A' wants to avoid the sale. 'A' has to sue for
      cancellation of the deed. On the other hand, if 'B'. who is not
      the executant of the deed, wants to avoid it, he has to sue for a
 E    declaration that the deed executed by 'A' is invalid/void and
      non-est/ illegal and he is not bound by it. In essence both may
      be suing to have the deed set aside or declared as non-binding.
      But the form is different and court fee is also different. If 'A', the
      executant of the deed, seeks cancellation of the deed, he has
. F   to pay ad-valorem court fee on the consideration stated in the
      sale deed. If 'B'. who is a non-executant, is in possession and
      sues for a declaration that the deed is null or void and does
      not bind him or his share, he has' to merely pay a fixed court
      fee of Rs. 19.50 under Article 17(iii) bf Second Schedule of the
 G    Act. But if 'B', a non-executant, is not in possession, and he
      seeks not only a declaration that the sale deed is invalid, but
      also the consequential relief of possession, he has to pay an
      ad-valorem court fee as provided under Section 7(iv)(c) of the
      Act. Section ?(iv)(c) provides that in suits for a declaratory
 H    decree with consequential relief, the court fee shall be computed
  SUHRID SINGH@ SARDOOL SINGH v. RANDHIR 1127
     SINGH & ORS. [R.V. RAVEENDRAN, J.]

according to the amount at which the relief sought is valued in         A
the plaint. The proviso thereto makes it clear that where the suit
for declaratory decree with consequential relief is with reference
to any property, such valuation shall not be less than the value
of the property calculated in the manner provided for by clause
(v) of Section 7.                                                       B

     7. In this case, there is no prayer for cancellation of the sale
deeds. The prayer is for a declaration that the deeds do not
bind the "co-parcenery" and for joint possession. The plaintiff
in the suit was not the executant of the sale deeds. Therefore,
the court fee was computable under section 7(iv)(c) of the Act.         C
The trial court and the High Court were therefore not justified
in holding that the effect of the prayer was to seek cancellation
of the sale deeds or that therefore court fee had to be paid on
the sale consideration mentioned in the sale deeds.
                                                                        D
     8. We accordingly allow these appeals, set aside the
orders of the trial court and the High Court directing payment
of court fee on the sale consideration under the sale deeds
dated 20.4.2001, 24.4.2001, 6.7.2001 and 27.9.2003 and
direct the trial court to calculate the court fee in accordance with    E
Section 7(iv)(c) read with Section 7(v) of the Act, as indicated
above, with reference to the plaint averments.

N.J.                                             Appeals allowed.


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