Case: AGRA DIOCESAN TRUST ASSOCIATION Vs. ANIL DAVID AND ORS

2. The appellant, (hereafter the plaintiff) had filed a suit (O.S. 24/ 2013) in the court of the Civil Judge (Senior Division), Dehradun for cancellation of a sale deed dated 08.03.2013, executed by the defendant-respondent no.1. The third respondent, (hereafter called the purchaser) had acquired the property from the defendant-respondent no.1. Another suit (O.S. No. 25/ 2013, also titled as Agra Diocesan Trust Association v. Anil David and Others), was filed by the plaintiff for cancellation of the sale deed dated 08.03.2013 executed by the first two respondents in favour of the purchaser. A further relief sought was for permanent injunction against the respondents/ defendants restraining them from interfering in the plaintiffs peaceful possession of the property in dispute. The defendants filed their written statements, contending inter alia that although the relief of cancellation of the sale deed in question has been sought, the plaintiff had improperly valued the suit and the court fee paid was insufficient3. The trial court on the pleadings of the parties, framed the issues; the relevant issues, Nos. 8 and 10 in both suits were (a) whether the suit filed by the plaintiff was undervalued and (b) whether the court fee paid by the plaintiff was insufficient4. The trial court by its order dated 23.04.2016, recorded the findings against the plaintiff / petitioner and held that the suits filed were under-valued and the court fee paid by the plaintiff was insufficient. Aggrieved by the same, the plaintiff filed the writ petition before the High Court, contending that the land in dispute was agricultural land. Further, it was stated that the appellant-plaintiff was not party to the sale deed, and therefore, the learned trial court has committed an illegality in deciding the issues against the plaintiff and in directing the plaintiff to pay ad valorem court fee on the market value of the land. It was also submitted that as the land in dispute was agricultural land, the petitioner was obliged to pay the court fee on the revenue payable as fixed by the state government in view of Section 7(iv-A) of the Court Fees Act, 18705. The High Court, by the impugned judgment, after hearing counsel for the parties, accepted the respondent/defendants contentions that the circle rate fixed by the collector to charge stamp duty took into account the actual market value of the property situated in the area. It was held that fixation of circle rate by the collector is the proper mode for fixation or determination of the market value (for purposes of payment of court fees), unless an aggrieved person challenges that the circle rate fixed by the Collector is not the correct market value of the property.

Court's reasoning:
15. It is evident from the above discussion that it is undisputed that the point in issue was with respect to valuation for purposes of court fee; equally, it is not in issue that since the plaintiff (i.e. petitioner herein) sought, in addition to a declaration, in both the suits, decrees of cancellation, the crucial point was what the correct value for purposes of court fee was. Now, market value has been specifically defined, in the context of a litigation like the present one. According to Section 7 (iv-A), in case the plaintiff (or his predecessor-in-title) was not a party to the decree or instrument, the value was to be according to one-fifth of the value of the subject matter, and such value shall be deemed to be under Section 7 (iv-A), if the whole decree or instrument is involved in the suit, the amount for which or value of the property in respect of which the decree is passed or the instrument executed . Importantly, the explanation to Section 7 (iv-A) created a deeming fiction as to what constitutes the value of the property by saying that in the case of immovable property shall be deemed to be the value as computed in accordance with the sub-section (v), (v-A) or (v-B) as the case may be17. A plain reading of the impugned judgment reveals that what weighed heavily with the High Court was the fact that the plaintiff valued the suits differently for the purposes of court fees and jurisdiction, and secondly that:no other market value has been proved by the petitioners/plaintiff that the settled revenue of the land is Rs. 3,000/- and in the absence of any evidence in this regard, the trial court has rightly considered the market value of the property in dispute in accordance with the market value fixed by the Collector in order to charge the stamp duty, which is the correct market valueIn the opinion of this court, there was no compulsion for the plaintiff to, at the stage of filing the suit, prove or establish the claim that the suit lands were revenue paying and the details of such revenue paid. Once it is conceded that the value of the land [per explanation to Section 7 (iv-A)] is to be determined according to either sub clauses (v), (va) or (vb) of the Act, this meant that the concept of market value – a wider concept in other contexts, was deemed to be referrable to one or other modes of determining the value under sub clauses (v), (va) or (vb) of Section 7 (iv-A). This aspect was lost sight of by the High Court, in the facts of this case. The reasoning and conclusions of the High Court, are therefore, not sustainable.