T.S. Rajam Ammal vs V.N. Swaminathan and Others

M.M. Ismail, J.—O.S. No. 51 of 1969 on the file of the Court of the Subordinate Judge, Nagapattinam, Was instituted for a declaration

that the sale deed dated 20th November, 1969, executed by one Subramania Pillai in favour of the first defendant and the sale deed dated 20th

January, 1962, executed by Subramania Pillai in favour of the fourth defendant represented by the third defendant, were not binding on the plaintiff

and for recovery of the suit items 1 to 13 from the 1st defendant and item 14 from the fifth defendant and items 15 to 19 from the second

defendant. The plaint properties were valued by the plaintiff in the suit in the trial Court on the market value as on the date of the plaint and not on

the consideration mentioned in the sale deeds. It is against the decree passed in the suit, the second defendant in so far as items 15 to 19 are

concerned had purported to file an appeal on the file of this Court. In this appeal, he sought to value the subject matter of the appeal not on the

basis of the market value of the items concerned, but on the basis of the consideration recited in the document cancelled by the trial Court. The

office pointed out that the appeal has to be valued on the basis of the market Value of the items in question and not on the basis of the

consideration recited in the document. The learned Counsel for the proposed appellant relied on a decision of Maharajan, J., in Andalammal Vs.

B. Kanniah, , and contended that the appeal has to be Valued only with reference to the consideration recited in the sale deed and not With

reference to the market value of the property involved. Since there is a decision of Sadasivam, J., in Sengoda Nadar Vs. Doraiswami Gounder and

Others, , holding that the subject matter has to be Valued with reference to the market value of the properties involved, the matter has been placed

before this Court.

I may immediately point out one thing, viz., there is the Full Bench decision of this Court in Kolachala Kutumba Sastri Vs. Lakkaraju Bala

Tripura Sundaramma and Others, , dealing With the corresponding provision in the earlier Act. According to that decision, the appeal has to be

Valued with reference to the market value of the properties involved and not with reference to the consideration recited in the document.

Sadasivam, J., in the judgment referred to above, has referred to and followed the Full Bench decision, while Maharajan, J., has not referred to the

Full Bench judgment at all. It is in view of this feature alone the matter has come before me. Before I deal with the Full Bench judgment and the

statutory language on which that decision Was rested, I shall refer to a few observations of Maharajan, J. The learned Judge has stated that:

I think it fruitless to refer to the conflicting authorities cited at the Bar in support of either view; firstly because the ratio decidendi in each of the

authorities cited must be confined to the facts of that particular case, and secondly because most of the authorities Were concerned With

interpreting the corresponding section in the earlier Act, Which in certain respects was Worded differently from Section 40 of the Madras Court-

fees and Suits Valuation Ac 1955.

After making the above observation the learned Judge extracted Section 400 the Madras Court-fees and Suits Valuation Act, 1955, and on his

interpretation of that section he held that the Court-fee is payable only on the consideration recited in the document and not on the market value of

the property involved. I may draw attention to one or two features with reference to the observation of Maharajan, J., extracted above. One is, not

one decision of the Court has been actually referred to by the learned Judge in his judgment, though the learned Judge stated that it Was fruitless to

refer to those authorities. Secondly, it is rather difficult to understand how a ratio decidendi of a decision construing a section can be confined to

the facts of the particular cafe alone. If the decision Was expressly or impliedly rested only on the peculiar facts of the particular case the position

may be different. But when the decision seeks to construe a statutory provision and on the basis of that construction, a conclusion is arrived at as

to the Court fee payable, it is difficult to appreciate how the ratio decidendi of that decision can be confined to the facts of that case. The next

feature to be observed is that the learned Judge has stated that the corresponding section in the earlier Act differed in certain respects from Section

40 of the Madras Court-fees and Suits Valuation Act, 1055.

Section 7 (IV-A) of the Court-fees Act, 1870, as amended by the Madras Court-fees Amendment) Act, 1922 (Madras Act V of 1922) states:

In a suit for cancellation of a decree for money or other property having a money value, or other document securing money or other property

having such Value, according to the value of the subject matter of the suit, and such value shall be deemed to be:

If the whole decree or other document is sought to be cancelled, the amount or the value of the property for which the decree was passed or the

document executed:

If apart of the decree or other document is sought to be cancelled, such part of the amount or Value of the property.

On a perusal of these two statutory provisions, it will be seen that the only difference in the language is with reference to the description of the

documents coming within the scope of this Statutory provision. Section 7 (iv-A) used a general expression "" other document securing money or

other property having such value"". That expression gave rise to certain difficulties of interpretation whether it covered only a mortgage and whether

it covered conveyances and other documents. That expression has been the subject matter of interpretation by the Court. In order to avoid any

ambiguity and to make it clear that the document referred to in Section 7 (iv-A) of the old Act, Was intended to cover a large Variety of

documents, the expression Was expanded as it is found in Section 40 of the new Act. Apart from this one difference, there is no other difference in

the operative portion of the two sections. In view of this, the question for consideration will be whether the Full Bench judgment referred to above

construing Section 7 (iv-A) of the Court-fees Act, 1870, as amended by the, Madras Court-fees (Amendment) Act, 1922, can be overlooked or

ignored for"" construing Section 40 of the Madras Court-fees, and Suits Valuation Act, 1955. He has not actually stated in what respects the

corresponding section differed'' from Section 40 of, the Madras, Court-fees and Suits Valuation Act, 1955.

Having made these observations, now I shall set out both the sections and deal with the Full Bench decision referred to already:

Section 40 of the Madras Court-fees and Suits Valuation Act, 1955.

(1) In a suit for cancellation of a decree for money or other property having a money value or other document which purports to or operates to

create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest in money, moveable or Immovable property, fee

shall be computed on the value of the subject matter of the suit, and such value shall be deemed to be--

If the whole decree or other document is sought to be cancelled, the amount or value of ""the property for which the decree Was passed or other

document Was executed;

If a part of the decree or other document is sought to be cancelled, such part of the amount or Value of the property.

(2) If the decree or other document is such that the liability under it can-. not be split up and the relief claimed relates only to a particular item of

property belonging to the plaintiff or to the plaintiff''s share in any such property, fee shall be computed on the value of such property of share or on

the amount of the decree, whichever is less.

Explanation : A suit to set aside an award shall be deemed to be a suit to set aside a decree within the meaning of this section.

In the Full Bench decision also the suit Was for a decree setting aside a conveyance which the plaintiff had executed and for possession of the land

covered by the deed, pleading that he had been induced to sign the instrument as a result of undue influence and fraud. The question was whether

that has to be valued u/s 7 (iv-A) for the purpose of Court-fee and Court-fee should be paid on the market value of the property involved as on

the date of the plaint. The argument that Was advanced on behalf of the plaintiff in that case was that since a prayer for possession of the property

had been made, the suit had to be valued u/s 7 (v) and not u/s 7 (iv-A). The Full Bench negatived the contention and agreed With the view of

Venkatasubba Rao, J., in Bali Reddi v. Abdul Satar ILR (1936) Mad. 240 : 69 M.L.J. 458 : AIR 1935 Mad. 863, and held that the Court-fee

has to be paid on the market value of the property as on the date of the plaint. The Full Bench held that ""The Court-fee is to be calculated on the

amount or the value of the property and to give the wording of para (iv-A) its plain meaning, the valuation must be the valuation based on the

market value of the property at the date of the plaint.

Sadasivam, J., in the decision referred to already, viz., the decision in Sengoda Nadar Vs. Doraiswami Gounder and Others, , has followed this

Full Bench decision. -If ""the Full Bench decision is directly in point, I am bound by that decision and therefore I am bound to follow the same. The

only question is whether the Full Bench decision is directly in point. As I pointed out already, the judgment of Maharajan, J., does not refer to the

Full Bench judgment at all and it is not clear whether the attention of the learned Judge was drawn to the Full Bench judgment, or not. As far as I

am concerned, I am clearly of the opinion that the Full Bench judgment is directly in point. I have already referred to the fact that there is no

difference in the language of Section 7 (iv-A) of the earlier Act and Section 40 of the 1935 Act except with regard to the description of the

document contemplated by the two sections. Consequently, following the Full Bench judgment, I must hold that the appellant will have to pay

court-fee on the market value of the items in which he is interested as on the date of the plaint.

Independently of the Full Bench decision, even as a matter of construction of Section 40 of the 1955 Act I come to the same conclusion. The

section has been extracted in full already and the material part of that section is ""fee shall be computed on the Value of the subject matter of the

suit, and such value shall be deemed to be--if the whole decree or other document is sought to be cancelled, the amount or value of the property

for which the decree Was passed or other document Was executed"". Maharajan, J. took the view that the language used is ""the amount or value of

the property for which the document was executed, and not the amount or value of the property in respect of which the document was executed

and therefore the consideration recited in the document is the test and not the market value of the property. With great respect, I am unable to

agree with this reasoning of the learned Judge. In the portion extracted by me above a common provision is made regarding decree as well as

document and if it is split up and applied separately to the decree and the document it will read ""such Value shall be deemed to be if the Whole

decree is sought to be cancelled, the amount or the value of the property for which the decree was passed"" and ""such value shall be deemed to be

if the other document is sought to be cancelled, the amount or the value of the property for which the other document Was executed"". It will be

seen that the expression ''value of the property'' is common to the decree as Well as the document. As far as the decree is concerned, no decree is

passed in respect of a property for any value. With regard to a property a decree''s purpose is allotment to different sharers. Whenever a decree

deals with a property either in the form of declaration of title or in the form of direction of delivery of possession or in the form of injunction, the

value of the property, if it has to be determined, has to be determined independently and the decree itself does not determine the value. Therefore,

if the expression ''value of the property'' has to be understood with reference to the decree sought to be set aside, the ''value'' can only mean

''market value'' and nothing else. Only in the case of a document it itself recites the value of the property and in the case of a settlement it states

what the value of the property settled is and in the case of a conveyance it states what the consideration for the conveyance is, but no such feature

Will be present in the , case of a decree. So long as the expression ''value of the property'' has been used in common, both With reference to the

decree and With reference to the document, as a matter of construction, it must bear only one meaning and it cannot bear one meaning when it is

used in relation to the decree and another meaning when it is used in relation to the document. Looked at from this point of view, ""value of the

property"" can only mean the market value as on the date of the plaint as pointed out by the Full Bench referred to above. The pronoun ''which''

occurring in the expression ""value of the property for which the decree was passed 01 the other document Was executed"" relates to ''the property''

and not to ''value''. One other reason which appears to have influenced Maharajan, J., in coming to the conclusion which he did Was that the

Legislature has expressly used the Words ""market value"" in twelve other sections of the Act in contra-distinction to the word ''value'' used in

Section 40 of the Madras Court-fees and Suits Valuation Act, 1955. In my opinion, this has no significance because even the Court-fees Act of

1870 used the words ''market Value'' in several other sections as against the Word ''value'' in Section 7 (iv-A). For instance, the expression

''market value'' occurs in Section 7 (iii), 7 (iv) (a), 7 (v) (e) etc. Consequently, this cannot be a ground for holding that the expression ''value'' in

Section 40 of the Madras Court-fees and Suits Valuation Act, 1955, can refer only to the consideration recited in the document and not to the

''market value'' of the properties involved.

For the above reasons, I hold that the second defendant in O.S. No. 51 of 1969 Who has preferred this appeal (S.R. No. 23145) which either

declares the title of a litigant or directs the delivery of possession or issues an injunction and there is no question of a decree being passed for any

property which is the subject-matter, with reference to its value, excepting, perhaps, a final decree in a partition action, When the property

involved is valued, has to pay Court-fee on the market value of the items in Which he is interested as on the date of the plaint. A fortnight''s time is

given for the appellant to pay the Court-fee. P.S.P. Ordered accordingly.