Plaintiff Cannot Value Suit Differently For Purpose Of Jurisdiction & For Payment Of Court Fees: Delhi High Court

The Delhi High Court has observed that a plaintiff cannot adopt a dual policy of valuing the suit at a certain value for the purpose of jurisdiction and payment of court fees.

Justice Neena Bansal Krishna further added that though it is in the discretion of the plaintiff to value his suit as per his bona fide belief and discretion, but once the suit has been valued in terms of sec. 8 of the Suit Valuation Act, the court fee shall become payable on the same amount in terms of sec. 7 of the Court Fees Act.

The Court made the observation while dealing with an application under Order VII Rule 11 of CPC filed on behalf of defendant in the suit for rejection of the plaint on account of payment of deficient court fees.

It was submitted that the plaintiff had filed a suit for Permanent and Mandatory Injunction and had valued his suit for Rs.2.5 crores for the purpose of jurisdiction. However, he paid the fixed court fee for Mandatory and Permanent Injunction by fixing the valuation at Rs.500 each.

It was thus asserted that once the valuation of the suit property was fixed at Rs.2.5 crores, the court fee also has to be necessarily paid on the same amount. Therefore, the plaint was liable to be rejected on account of deficient court fee.

The Court was of the view that while licensee or an unauthorized occupant can be asked to vacate the property by filing a suit for Mandatory injunction, the question in the matter was not in regard to maintainability of a suit for Mandatory Injunction but of valuation and payment of court fee.

"The plaintiff cannot adopt a dual policy of valuing his suit at a certain value for the purpose of jurisdiction and for the purpose of payment of court fees. Once the suit has been valued at a certain value, the advolerum court fees has to be paid mandatorily on the same valuation," the Court said.

The Court noted that that the plaintiff had valued the suit for the purpose of jurisdiction at Rs.2.5 crores while for the purpose of court fee had assessed each relief at Rs.500 each.

"It is no doubt true that the law gives a discretion to the plaintiff to value his suit and such discretion as exercised by the plaintiff in mentioning the valuation of the suit must not be interfered by the Court," the Court said.

The Court then granted the plaintiff a period of one month for making good the deficient court fee, while listing the matter on 17th October, 2022.

Case Title: RAJINDER SINGH BHATIA v. MANJU BHATIA

Citation: 2022 LiveLaw (Del) 808

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