Supreme Court: In case of compensation the Court Fees shall be determined according to nature of suit

Mar17,2022 #Court Fees #SUPREME COURT
court FEES Law Insider

Sakunjay Vyas

Published on: March 17, 2022 at 10:40 IST

The Two Judge Bench of Justice Dinesh Maheshwari and Justice Vikram Nath of Supreme Court overturned the High Court of Punjab and Haryana bench order that set aside the order passed by Trial Court whereby it had granted time to the plaintiff-respondent to make good the Court-fees within a particular period failing which the plaint would stand rejected.

The Supreme Court recently ruled that the Court Fees in the case of compensation shall be determined according to the nature of the suit.

The Two Judge Bench of Justice Dinesh Maheshwari and Justice Vikram Nath was hearing an appeal against the High Court of Punjab and Haryana Bench order that set aside the order passed by Trial Court, whereby it had granted time to the plaintiff-respondent to make good the Court-fees within a particular period failing which the plaint would stand rejected, by referring to the number of judgments to hold that as the actual and specified amount of damages were to be assessed and determined by the Trial Court.

The Apex Court, while considering the present matter clarified the issue in hand regarding the determination and assessment of the damage provided by the Court. That the categorization for the fees is given under, sub-clause (i) of section 7 is the money suits which include damages, compensation, arrears of maintenance, annuities or other sums payable periodically and here the fees payable would be according to the amount claimed by the Court,

and sub-clause (iv) of section 7 includes six categories, namely, suits

(a) for the movable property of no market value;

(b) to enforce a right to share in the joint family property;

(c) for a declaratory decree and consequential relief;

(d) for an injunction;

(e) for easements; and

(f) for accounts and the fees on a suit falling in these categories would be payable according to the amount at which the relief sought is valued in the plaint.

The apex courts stated that the reading of the relief clause makes it pretty clear that the present suit falls under the virtue of sub-clause (1) of section 7; hence here, the fees payable would be according to the amount claimed by the Court.

“A reading of the relief clause would make it abundantly clear that this was a money suit for compensation/damages and not falling under any of the categories mentioned in clause (iv) of Section 7 of the Act.”

the Court said.

The Apex Court further stated that the submissions made before the Trial Court regarding an issue framed relating to the proper valuation of the suit for the purposes of the Court fees are not valid since the said judgment had come subsequent to the filing of the present appeal and the Trial Court had dismissed the suit.

The said submission has no legs to stand for two reasons: firstly, the said judgment had come subsequent to the filing of the present appeal @ Special Leave Petition as the judgment of the High Court is dated 11.08.2017 and secondly, the Trial Court had dismissed the suit vide judgment dated 28.02.2020 as such the State was not required to challenge the finding on issue No.3.” the Court said.

As a result, the Apex Court quashed and set aside the order of the High Court of Rajasthan, stating that since the suit itself had been finally dismissed and that it is directed that the plaintiff-respondent shall make payment of the determined court fees within four weeks from today; and further should make payment of court fees in the appeal on the value he shall put on the relief sought to be claimed in appeal.

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