IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.S.SATHEESACHANDRAN TUESDAY, THE 15TH DECEMBER 2009 / 24TH AGRAHAYANA 1931 WP(C).No. 30953 of 2009(O) -------------------------- AGAINST THE JUDGEMENT/ORDER IN IA.740/2009 IN OS.87/2008 of MUNSIFF MAGISTRATE, ERATTUPETTA .................... PETITIONER(S)/PLAINTIFF: ------------------------ JOY JOSEPH, AGED 50 YEARS, S/O. JOSEPH, MOOKKANTHOTTATHIL HOUSE, PARAPPALLY KARA, POOVARAHE VILLAGE, MEENACHIL TALUK. BY ADV. SRI.T.K.PANKAJASHAN PILLAI SRI.SAJI PANKAJAKSHAN SRI.P.R.PADMANABHAN NAIR RESPONDENT(S)/DEFENDANT: ------------------------ 1. DR.THOMAS T.CHOWKATTUKUNNEL, AGED 70, OUSEPH THOMMAN, CHOWKATTUKUNNEL HOUSE, EDAPPADY KARA, BHARANANGANAM P.O. 2. ANNAMMA THOMAS, AGED 61 YEARS, DR.THOMAS T.CHOWKATTUKUNNEL, CHOWKATTUKUNNEL HOUSE, EDAPPADY KARA, BHARANANGANAM P.O. ADV. SRI.LIJI.J.VADAKEDOM FOR R1-2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 15/12/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: S.S.SATHEESACHANDRAN, J. ------------------------------- W.P.(C).NO.30953 OF 2009 () ----------------------------------- Dated this the 15th day of December, 2009 J U D G M E N T The writ petition is filed seeking mainly the following relief: i. to set aside the order in I.A.No.740 of 2009 dated 9.10.2009 in O.S.No.87 of 2008 of the Munsiff's Court, Erattupetta. 2. Petitioner is the plaintiff in I.A.No.740 of 2009 in O.S.No.87 of 2008 on the file of the Munsiff Court, Erattupetta. Suit was one for dissolution of a partnership firm, settlement of accounts and for injunction, and the respondents are the defendants. Challenge raised in the writ petition is against Ext.P3 order passed by the learned Munsiff holding that the valuation of the suit is incorrect and the court fee paid is inadequate. Initially Ext.P3 order was challenged by filing a revision which was later allowed to be converted WPC.30953/09 2 and renumbered as a writ petition, allowing the application moved seeking such conversion. 3. The case of the petitioner/plaintiff in brief as disclosed by Ext.P1 copy of the plaint in the suit is that there was an agreement between him and the 1st defendant, a close relative who was employed abroad, to engage in real estate business and share the profits thereof. A copy of the agreement entered by the parties, plaintiff and the 1st defendant, was also produced with the plaint. Plaintiff and the 1st defendant mutually agreed to do such partnership in real estate business investing the funds of both of them agreeing to share 10% interest for the amount invested and 2% profit to both of them was the case of the petitioner/plaintiff. Pursuant of such agreement, several transactions were effected purchasing properties in the name of both the parties, and the profits were shared as agreed upon. However, it is case of the petitioner/plaintiff, behind his back, the 1st defendant transacted real estate business independently to make personal profit, and hence, the suit has been necessitated. The 1st defendant resisted the suit by filing Ext.P2 written statement disputing the case of the plaintiff as WPC.30953/09 3 to the partnership business between them and also contending that none of the reliefs canvassed in the suit is allowable. Among other contentions, it was also contended that a preliminary issue regarding payment of court fee has to be raised directing “the plaintiff to submit proper computation and accounts showing the computation of court fee and specifying his claim as to whether he claims share over the property scheduled and if so, on what fraction, and direct the plaintiff to value the suit accordingly.” On the basis of the contention raised as aforesaid in Ext.P2 written statement, the court below has raised an issue as to whether the suit is properly valued, and, after hearing both sides on that issue, Ext.P3 order was passed holding that the suit has not been properly valued directing the plaintiff to value the suit in accordance with the reliefs claimed in Ext.P1 plaint. Propriety and correctness of that order is challenged in the writ petition invoking the supervisory jurisdiction vested with this Court under Article 227 of the Constitution of India. 4. I heard the learned counsel on both sides. The learned counsel for the petitioner relying on Sujir Keshav Nayak v. Sujir Ganesh Nayak (1992 (1) KLT 283) WPC.30953/09 4 contended that in a suit for dissolution of partnership, unless it is shown that the valuation shown in the plaint by the plaintiff is arbitrary and there is reason to hold that the suit would not lie in the court where it is presented in view of the limit of its pecuniary jurisdiction, the valuation disclosed by the plaintiff require to be accepted as correct. Taking exception to the reasonings of the court below in Ext.P3 order that the main relief canvassed is one for declaration, and so much so, valuation with reference to that relief has to be made in the suit, the learned counsel contended that an over all view of the matter with reference to the allegations raised in the plaint ought to have been taken into account by the court in determining the question of valuation. It was not necessary for the plaintiff to seek any declaration in a suit for dissolution of partnership firm, and so much so, the word “declare” in the main relief should not have been construed by the court to hold that the suit was essentially one for a declaratory relief. Relying on Mrs.Indira Bhalchandra Gokhale v. Union of India and another (AIR 1990 Bombay 98), the learned counsel for the plaintiff contended that the relief of declaration was not required in the present suit, and so much so, directions issued by the court below in Ext.P3 order after WPC.30953/09 5 holding that the valuation made in the suit is incorrect, to file a valuation statement with reference to the reliefs of declaration, injunction etc. is incorrect. On the other hand, the learned counsel for the respondents contended that no interference with Ext.P3 order is called for in exercise of the visitorial jurisdiction vested with this Court as there is no impropriety or illegality in that order passed by the court below. Reliance is placed on Sujir Keshav Nayak v. Sujir Ganesh Nayak (1991 (2) KLT 741) and also Abdul Hamid Shamsi v. Abdul Majid and others ((1988) 2 SCC 575) by the learned counsel for the respondents to contend that where valuation of the reliefs made by the plaintiff in the suit is arbitrary and whimsical, it is liable to be rejected by the court. In the present case, where the plaintiff has canvassed for a declaration as the main relief and that, according to the counsel, is essential, since the very claim of partnership between the plaintiff and the 1st defendant has been disputed, Ext.P3 order passed by the court below to correct the valuation with reference to the reliefs canvassed is proper, valid and correct, and it is only to be upheld. WPC.30953/09 6 3. Perusing Ext.P3 order with reference to the submissions made by the counsel on both sides and also the judicial pronouncements over the question relied upon by both sides, I find that the court below has given too much significance to the word “declare” in Ext.P1 plaint. In Ext.P1 plaint, as 'A' relief the plaintiff has asked for “to declare the dissolution of the partnership firm and the real estate business mentioned”. 'B' relief is one for a decree to settle the accounts of the firm and 'C' relief for a decree of permanent injunction to restrain the 1st defendant from alienating the plaintiff's properties or from committing waste. Since in 'A' relief the word “declare” has been used the suit has to be construed as one for a declaration and, thus, to be valued under Section 25 of the Court Fees Act, was the view taken by the court below. Valuation of the suit has to be based on the allegations raised and the reliefs canvassed in the plaint. Suit has been filed essentially as one for dissolution of a partnership firm and for settlement of accounts. The word “declare” used in 'A' relief does not have any significance. In a suit for dissolution of partnership firm, valuation and court fee to be paid is under Section 36 of the Court Fees and Suits Valuation Act. In such a suit, as rightly pointed out by the WPC.30953/09 7 learned counsel for the petitioner only in a case where the valuation shown in the suit is arbitrary and whimsical and a correct valuation would take away the suit from the court in which it is presented in view of the limit of pecuniary jurisdiction, then alone, nonacceptance of the valuation made by the plaintiff emerge for consideration. Section 36 of the Kerala Court Fees and Suits Valuation Act makes it abundantly clear that the suit has to be valued on the plaintiff's share in the partnership as estimated by the plaintiff. Sub Section (2) of Section 36 of the Kerala Court Fees and Suits Valuation Act emphatically states that where the value of the plaintiff's share as ascertained in the suit exceeds the value as estimated in the plaint, no decree in favour of the plaintiff shall be passed in his favour without payment of the deficit court fee payable on the ascertained value of his share. The learned counsel for the respondents has relied on Sujir Keshav Nayak v. Sujir Ganesh Nayak (1991 (2) KLT 741) that the court below was right in directing the plaintiff to value the suit for the declaratory relief and to correct the valuation accordingly. The above decision was reversed by the apex court in Sujir Keshav WPC.30953/09 8 Nayak v. Sujir Ganesh Nayak (1992 (1) KLT 283) pointing out the limited scope of enquiry over valuation and payment of court fee in a suit for partition. The apex court has held thus: “In suits for accounting for dissolution of partnership and accounting filed in courts of limited pecuniary jurisdiction the plaintiff must take every care to disclose valuation which is not arbitrary as the plaint is liable to be rejected on objection of the defendant. But in suits of such nature filed before courts of unlimited jurisdiction the valuation disclosed by the plaintiff may be accepted as correct. This however does not mean that the courts power to examine the correctness of valuation is taken away. If on perusal of plaint the courts is prima facie satisfied that the plaintiff has not been fair and valued the suit or relief arbitrarily it is not precluded from directing the plaintiff to value it properly and pay court fee on it.” In the given facts of the case and the question emerging for consideration with respect to the determination of the court fee payable for dissolution of a firm and settlement of accounts, reference to the other decisions cited by the counsel on both sides is uncalled for. It is evident that the court below has given unmerited significance to the word “declare” in 'A' relief, a relief in Ext.P1 plaint, to form its conclusion that the WPC.30953/09 9 plaintiff has to value that relief under Section 25 (d) (ii) of the Kerala Court Fees and Suits Valuation Act. In a suit for dissolution of the firm and settlement of accounts, no such declaration as to the dissolution of the firm is warranted even if a contention has been raised by the opposite party that there is no firm. That dispute is a matter to be adjudicated in the suit in considering the merit of the relief canvassed for dissolution of the firm and settlement of accounts. In the present case, the court below is expected only to consider whether the valuation made by the plaintiff in the suit is arbitrary and whimsical, and if a proper valuation as contemplated under Section 36 of the Kerala Court Fees and Suits Valuation Act is made whether the suit is beyond its pecuniary limits warranting its return for re-presentation before the court having unlimited jurisdiction. In Ext.P2 written statement of the 1st defendant, it is seen the contention raised with respect to valuation and payment of court fee is so vague (paragraph 24), but, unfortunately, challenge as to inadequacy in valuation and deficit in payment of court fee had been pressed as a serious issue in the case and it has resulted in delaying in proceeding with the trial and disposal of the case on merits. Setting aside Ext.P3 order, the WPC.30953/09 10 court below is directed to examine the question with respect to valuation and court fee afresh taking note of the observations made above and pass appropriate orders in accordance with law. Subject to the orders to be passed on the above question, the court below is also directed to make every endeavour to dispose the suit as expeditiously as possible. With the above direction, the writ petition is disposed. S.S.SATHEESACHANDRAN JUDGE prp