Case: BHARAT BHUSHAN GUPTA Vs. PRATAP NARAIN VERMA &amp; ANR

1 in any manner whatsoever. The said decision related with a suit for rendition of accounts, which is one of the species of the suits envisaged by clause (iv) of Section 7 of the Court Fees Act. Even in that context, this Court, inter alia, observed that the plaintiffs assessment in such a plaint about the amount due to his share was a guesswork in the absence of any cogent material and would not constitute objective standard of valuation. This Court explained the principles governing the valuation of the suits falling under Section 7(iv) of the Court Fees Act in the following terms: 7. So far as suits coming under Section 7(iv) of the Court Fees Act are concerned, the legislature has left the question of valuation of the relief sought in the plaint or memorandum of appeal to the plaintiff. The reason is obvious. The suits which are mentioned under Section 7(iv) are of such nature that it is difficult to lay down any standard of valuation. Indeed, the legislature has not laid down any standard of valuation in the Court Fees Act. Under Section 9 of the Suits Valuation Act, the High Court may, with the previous sanction of the State Government, frame rules for the valuation of suits referred to in Section 7(iv) of the Court Fees Act. Although the Punjab High Court has framed rules under Section 9 of the Suits Valuation Act which are applicable to the Union Territory of Delhi, such rules do not lay down any standard of valuation with regard to suits coming under Section 7(iv) of the Court Fees Act. It has already been noticed that under Rule 4(i) of the Punjab High Court Rules, the value of suit for accounts for purposes of court fee will be as determined by the Court Fees Act, which means that the valuation of the relief will have to be made by the plaintiff under Section 7(iv)(f) of the Court Fees Act. 11.1. The observations occurring in paragraph 13 of the said decision, which are sought to be relied upon by the contesting respondent, read as under: - 13. But, there may be cases under Section 7(iv) where certain positive objective standard may be available for the purpose of determination of the valuation of the relief. If there be materials or objective standards for the valuation of the relief, and yet the plaintiff ignores the same and puts an arbitrary valuation, the court, in our opinion, is entitled to interfere under Order VII, Rule 11(b) of the Code of Civil Procedure, for the court will be in a position to determine the correct valuation with reference to the objective standards or materials available to it. In Urmilabala Biswas, v. Binapani Biswas [AIR 1938 Cal 161 : 42 CWN 192: 177 1C 893] a suit was instituted for declaration of title to provident fund money amounting to a definite sum with a prayer for injunction restraining the defendant from withdrawing the said money. It was held that there was no real distinction between the right to recover money and the right to that money itself, and that the relief should have been valued at the provident fund amount to which title was claimed by the plaintiff. Thus, it appears that although in that case the suit was one under Section 7(iv) (c) of the Court Fees Act, there was an objective standard which would enable the plaintiff and the court too to value the relief correctly and, in such a case, the court would be competent to direct the plaintiff to value the relief accordingly. 11.2. These observations were, in fact, taken note of by the High Court in the impugned judgment too but they cannot be read to mean that in a suit for mandatory injunction concerning a property and thereby seeking certain mandates over the acts/omissions of the defendant, the suit is required to be valued as per the market value of the property. Such a proposition, for suit valuation on the market value of the property involved, irrespective of the nature of relief claimed, if accepted, would render the whole scheme of the Court Fees Act concerning suit valuation with reference to the nature of relief going haywire. This argument is required to be rejected. 12. The decision of the Full Bench of Delhi High Court in the case of Mahant Purushottam Dass (supra) has also been unnecessarily cited. The suit therein was for declaration and perpetual injunction where the Court found that the plaintiff could not have asked for the relief of injunction without seeking declaration and the suit, on its nature, was held to be governed by clause (v) of the Section 7 of the Court Fees Act. The said decision has no relevance or application to the present case. 13. Before concluding, we may also observe that the submission made on behalf of respondent No. 1 concerning want of framing of the necessary issues by the Trial Court despite his prayer does not require much comments. This is for the simple reason that irrespective of the issues framed, the respondent No. 1, while contesting the suit, chose to raise the objection regarding suit valuation and jurisdiction of the Trial Court by way of the application under Order VII Rule 11 CPC during the course of cross-examination of the plaintiff. That application was rightly rejected by the Trial Court. The High Courts decision to the contrary is not being approved by us. That being the position, the contention about want of framing of issues does not hold water any more. 14. For what has been discussed hereinabove, we may simply put the upshot in other words that the High Court has totally omitted to consider the applicable provision of law i.e., Section 7(iv)(d) of the Court Fees Act as also the principles of law stated in the very same decision being referred to and relied upon in the impugned order itself. Thus, the impugned order deserves to be set aside.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]7. Having given thoughtful consideration to the rival submissions and having examined the material placed on record with reference to the law applicable, we are clearly of the view that the impugned order dated 18.03.2019, as passed by the High Court with reference to the statement made by the plaintiff in his cross-examination on the value of the suit property, does not stand in conformity with law and cannot be sustained.9. The nature of the present suit, as noticed hereinabove, makes it evident on the face of record that the plaintiff-appellant has sought the reliefs of mandatory injunction against the defendants for removing themselves and their belongings from the plot in question, while alleging that the defendants were in occupation thereof only as licensees; and were obliged to remove themselves after termination of respective licenses. The plaintiff has also prayed for the relief of perpetual prohibitory injunction that the defendants may not create any third-party rights in the suit property or raise any construction thereon. The plaintiff has valued the suit for the purpose of Court fees and jurisdiction at Rs. 250 for each of the reliefs for injunction and at Rs. 1 lakh for damages; and has paid the Court fees accordingly.9.1. 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 market value of the immovable property involved in the litigation might have its relevance depending on the nature of relief claimed but, ultimately, the valuation of any particular suit has to be decided primarily with reference to the relief/reliefs claimed.9.2. So far as the present suit is concerned, the plaintiff has alleged the defendants to be the licensees and has sought mandatory injunction obliging them to remove themselves and their belongings. Not much of discussion is required to find that with such pleadings, claim of relief of mandatory injunction is not unknown to the legal process. For ready reference, we may refer to the relevant passage from the decision in Maria Margarida Sequeira Fernandes (supra) as under: -65. A suit can be filed by the title-holder for recovery of possession or it can be one for ejectment of an ex-lessee or for mandatory injunction requiring a person to remove himself or it can be a suit under Section 6 of the Specific Relief Act to recover possession.9.3. Further in the case of Sant Lal Jain (supra), this Court referred to a decision of the Jammu & Kashmir High Court (In the case of Milka Singh v. Diana: AIR 1964 J & K 99) with approval and held as under: -…In Milka Singh v. Diana AIR 1964 J & K 99, it has been observed that the principle that once a licencee always a licensee would apply to all kinds of licenses and that it cannot be said that the moment the licence is terminated, the licensees possession becomes that of a trespasser. In that case, one of us (Murtaza Fazal Ali, J. as he then was) speaking for the Division Bench has observed:After the termination of the licence, the licensee is under a clear obligation to surrender his possession to the owner and if he fails to do so, we do not see any reason why the licensee cannot be compelled to discharge this obligation by way of a mandatory injunction under S. 55 of the Specific Relief Act. We might further mention that even under the English Law a suit for injunction to evict a licensee has always been held to be maintainable.…where a licenser approaches the court for an injunction within a reasonable time after the licence is terminated, he is entitled to an injunction. On the other hand, if the licenser causes huge delay, the court may refuse the discretion to grant an injunction on the ground that the licenser had not been diligent and in that case, the licenser will have to bring a suit for possession which will be governed by Section 7 (v) of the Court-Fees Act.7. In the present case it has not been shown to us that the appellant had come to the Court with the suit for mandatory injunction after any considerable delay which will disentitle him to the discretionary relief. Even if there was some delay, we think that in a case of this kind attempt should be made to avoid multiplicity of suits and the licensor should not be driven to file another round of suit with all the attendant delay, trouble and expense. The suit is in effect one for possession though couched in the form of a suit for mandatory injunction as what would be given to the plaintiff in case he succeeds is possession of the property to which he may be found to be entitled. Therefore, we are of the opinion that the appellant should not be denied relief merely because he had couched the plaint in the form of a suit for mandatory injunction.9.4. In fact, in the case of Mulk Raj Khullar (supra) as referred by the High Court in its impugned order, the aforesaid decision in Sant Lal Jain as also another decision in the case of Joseph Severance & Ors. v. Benny Mathew & Ors.: (2005) 7 SCC 667  were taken note of and the High Court concluded as follows: -16. The legal position that follows is that where a suit is filed with promptitude against a licensee whose license is terminated, a Suit for mandatory injunction is maintainable…..9.5. The aforesaid discussion as regards maintainability of suit for mandatory injunction does not require much elaboration for the settled position of law as also for the relevant fact that even in the order impugned, the High Court has not stated anything to the contrary, so far as the question of maintainability of the suit seeking relief of mandatory injunction is concerned. The High Court rather placed this aspect of the matter beyond the pale of doubt while observing, after its extensive reference to the various decisions, that the facts of the present case and that of the case of Mulk Raj Khullar (supra) were in pari materia. To this extent, the consideration of the High Court had been in tune with the applicable legal principles. However, immediately on the next step, the High Court, with respect, committed serious error by referring to a passage in Mulk Raj Khullars case in isolation and detached from the substance, where the Court had indicated want of any argument about whimsical valuation. That observation in paragraph 30 in the decision of Mulk Raj Khullars case came in the context of observations in another decision of Delhi High Court in the case of Padmavati Mahajan v. Yogender Mahajan & Anr.: (2008) 152 DLT 363, wherein the Court had observed that a suit for injunction could be valued by the plaintiff in his/her discretion subject to the condition that such discretion ought not to be whimsical. The use of generalised expression whimsical, without specifications, has been picked up by the High Court in the impugned order and then, the market value of the plot in question, as stated by the plaintiff in his cross-examination, has been taken by the Court to be indicative of arbitrariness in valuation. With respect, the High Court even missed out the relevant statement of law in the very passage reproduced in Mulk Raj Khullar, wherein it was stated in clear terms that such a suit was not required to be valued at the market value of the property.10. The High Court has not even considered the overall circumstances of the present case where the plaintiff has valued the reliefs of mandatory and prohibitory injunction at the nominal Rs. 250 but, at the same time, has also valued the suit with reference to the claim of damages at Rs. 1 lakh and had paid the Court fees accordingly. It is apparent on the face of the record that despite unquestionable principle of law that such a suit for mandatory and prohibitory injunction is not required to be valued at the market value of the property, the High Court has relied only upon the market value of the property to hold the valuation of the present suit to be arbitrary. Such a conclusion of the High Court neither stands in conformity with law nor with the frame and the nature of the present suit.11. The decision in the case of Commercial Aviation (supra) does not further the cause of the respondent No. 1 in any manner whatsoever. The said decision related with a suit for rendition of accounts, which is one of the species of the suits envisaged by clause (iv) of Section 7 of the Court Fees Act. Even in that context, this Court, inter alia, observed that the plaintiffs assessment in such a plaint about the amount due to his share was a guesswork in the absence of any cogent material and would not constitute objective standard of valuation. This Court explained the principles governing the valuation of the suits falling under Section 7(iv) of the Court Fees Act in the following terms:7. So far as suits coming under Section 7(iv) of the Court Fees Act are concerned, the legislature has left the question of valuation of the relief sought in the plaint or memorandum of appeal to the plaintiff. The reason is obvious. The suits which are mentioned under Section 7(iv) are of such nature that it is difficult to lay down any standard of valuation. Indeed, the legislature has not laid down any standard of valuation in the Court Fees Act. Under Section 9 of the Suits Valuation Act, the High Court may, with the previous sanction of the State Government, frame rules for the valuation of suits referred to in Section 7(iv) of the Court Fees Act. Although the Punjab High Court has framed rules under Section 9 of the Suits Valuation Act which are applicable to the Union Territory of Delhi, such rules do not lay down any standard of valuation with regard to suits coming under Section 7(iv) of the Court Fees Act. It has already been noticed that under Rule 4(i) of the Punjab High Court Rules, the value of suit for accounts for purposes of court fee will be as determined by the Court Fees Act, which means that the valuation of the relief will have to be made by the plaintiff under Section 7(iv)(f) of the Court Fees Act.11.1. The observations occurring in paragraph 13 of the said decision, which are sought to be relied upon by the contesting respondent, read as under: -13. But, there may be cases under Section 7(iv) where certain positive objective standard may be available for the purpose of determination of the valuation of the relief. If there be materials or objective standards for the valuation of the relief, and yet the plaintiff ignores the same and puts an arbitrary valuation, the court, in our opinion, is entitled to interfere under Order VII, Rule 11(b) of the Code of Civil Procedure, for the court will be in a position to determine the correct valuation with reference to the objective standards or materials available to it. In Urmilabala Biswas, v. Binapani Biswas [AIR 1938 Cal 161 : 42 CWN 192: 177 1C 893] a suit was instituted for declaration of title to provident fund money amounting to a definite sum with a prayer for injunction restraining the defendant from withdrawing the said money. It was held that there was no real distinction between the right to recover money and the right to that money itself, and that the relief should have been valued at the provident fund amount to which title was claimed by the plaintiff. Thus, it appears that although in that case the suit was one under Section 7(iv) (c) of the Court Fees Act, there was an objective standard which would enable the plaintiff and the court too to value the relief correctly and, in such a case, the court would be competent to direct the plaintiff to value the relief accordingly.11.2. These observations were, in fact, taken note of by the High Court in the impugned judgment too but they cannot be read to mean that in a suit for mandatory injunction concerning a property and thereby seeking certain mandates over the acts/omissions of the defendant, the suit is required to be valued as per the market value of the property. Such a proposition, for suit valuation on the market value of the property involved, irrespective of the nature of relief claimed, if accepted, would render the whole scheme of the Court Fees Act concerning suit valuation with reference to the nature of relief going haywire. This argument is required to be rejected.12. The decision of the Full Bench of Delhi High Court in the case of Mahant Purushottam Dass (supra) has also been unnecessarily cited. The suit therein was for declaration and perpetual injunction where the Court found that the plaintiff could not have asked for the relief of injunction without seeking declaration and the suit, on its nature, was held to be governed by clause (v) of the Section 7 of the Court Fees Act. The said decision has no relevance or application to the present case.13. Before concluding, we may also observe that the submission made on behalf of respondent No. 1 concerning want of framing of the necessary issues by the Trial Court despite his prayer does not require much comments. This is for the simple reason that irrespective of the issues framed, the respondent No. 1, while contesting the suit, chose to raise the objection regarding suit valuation and jurisdiction of the Trial Court by way of the application under Order VII Rule 11 CPC during the course of cross-examination of the plaintiff. That application was rightly rejected by the Trial Court. The High Courts decision to the contrary is not being approved by us. That being the position, the contention about want of framing of issues does not hold water any more.14. For what has been discussed hereinabove, we may simply put the upshot in other words that the High Court has totally omitted to consider the applicable provision of law i.e., Section 7(iv)(d) of the Court Fees Act as also the principles of law stated in the very same decision being referred to and relied upon in the impugned order itself. Thus, the impugned order deserves to be set aside.