Valuation Of A Suit Is Based On Nature Of Relief Claimed, Not On Market Value Of Property: Rajasthan High Court Reiterates

While hearing a dispute concerning sale of a property, the Jodhpur Rajasthan High Court reiterated that it was only the nature and valuation of the relief claimed on the basis of which the valuation of the suit as well as the court fee was determined and not the market value of any property.

Justice Rekha Borana was hearing a petition against an order of the Additional District Judge wherein even though an application for dismissal of the suit was rejected but the petitioners were directed to revalue the suit and pay the deficit court fees.

The court said, "In the specific opinion of this Court, the suit in question had rightly been valued for an amount of Rs.23 lakhs and the Court fee as paid on the said valuation was sufficient and in terms of law. As is the settled position of law, it is the nature of the relief claimed which becomes the basis for the valuation of a suit. A suit is always to be valued on the reliefs as claimed. The market value of any property cannot be a decisive factor for valuation of the suit. It is only the nature and the valuation of the relief claimed, on basis of which, the valuation of the suit is to be determined and the Court fee is to be paid".

As per the facts of the case, an agreement for sale was executed between the petitioners and the respondents in relation to the 15.875 bighas of land for a consideration of around Rs. 5.5 Crores. The sale deeds were to be executed in parts as and when the consideration amount was paid.

In this manner, sale deeds for 22 plots were already executed and for 8 plots it was remaining that had a consideration of Rs. 23 lakhs in relation to which a second agreement was executed between the petitioners and the respondents. Since the sale deeds in relation to the 8 plots did not get executed, the petitioners filed a suit for specific performance of contract.

This suit was valued for an amount of Rs. 23 lakhs since it was filed only in relation to the 8 plots. However, the respondents filed an application for dismissal of the suit raising a dispute that the suit ought to have been valued on complete consideration amounting to Rs. 5.5 Crores.

This application was rejected by the trial court but directions were given to the petitioners for valuing the suit at the complete consideration of Rs. 5.5 Crores and to pay the deficient court fees. It was against this order that a petition was filed by the petitioners.

It was argued by the counsel for the petitioners that the relief prayed in the suit was only for specific performance of the second agreement executed for reiteration of the conditions of the original agreement, only in relation to the remaining consideration amount of Rs. 23 Lakhs. Hence, the suit was properly valued at the amount of Rs. 23 Lakhs and the order of the trial court was totally erroneous and contrary to law.

On the contrary, it was submitted for the respondents that it was settled position of law that in a suit for specific performance of contract, the plaint had to be valued on the complete consideration of the agreement and it could not be valued only based on a part of the consideration.

After hearing the contentions, the Court said that the petitioners plaintiffs valued the suit for an amount of Rs.23 lakhs and paid the Court fee on the said valuation. It noted that the dispute raised by respondent defendant No.1 was to the effect that the suit ought to have been valued on the complete consideration amount of Rs.5,47,84,625/- and the Court fee ought to have been paid on the said valuation.

It then opined that the suit was rightly valued at an amount of Rs. 23 Lakhs and court fees paid was sufficient. The court referred to the Supreme Court's decision in Bharat Bhushan Gupta v Pratap Narain Verma & Ors. in which it was held:

“It remains trite that it is the nature of relief claimed in the plaint which is decisive of the question of suit valuation. As a necessary corollary, the market value does not become decisive of suit valuation merely because an immovable property is the subject matter of litigation.”

The Court highlighted that the sale deed of 22 plots had already been executed and there was no dispute regarding the same, nor any relief was claimed in relation to those. Hence, the petitioners could not be directed to revalue the suit on the complete consideration amount of the original agreement and pay the court fee on the said valuation.

Accordingly, the petition was allowed and the application for dismissal of suit filed by the respondents was also dismissed in entirety.

Title: Smt. Vijay Lakshmi & Ors. v Madhav Singh & Ors.

Citation: 2024 LiveLaw (Raj) 358

Click Here To Read/Download Order