No Consideration Amount Passed, No Ad Valorem Court Fees Arises – Punjab and Haryana High Court Dismisses Revision Petition in Specific Performance Suit
The Punjab and Haryana High Court, in a recent judgment, dismissed a revision petition challenging the order on court fee deficiency in a specific performance suit. The decision, delivered by Hon’ble Mrs. Justice Alka Sarin, held that where no consideration amount has been passed in a property transfer agreement, the question of affixing ad valorem court fees does not arise.
Legal Point of Judgment: The Court deliberated on the applicability of ad valorem court fees in a suit for specific performance where no monetary consideration is involved. The ruling reaffirmed the principle that court fees are contingent on the existence of a consideration amount in such agreements.
Facts and Issues: The suit involved a property agreement between brothers, where the petitioner alleged that the plaintiff-respondent had not affixed appropriate ad valorem court fees to the plaint. The respondent had filed a suit for specific performance of an agreement/affidavit executed by the petitioner regarding a property transfer, wherein it was stated that no consideration amount had been passed.
Court Assessment:
Nature of Suit: The Court noted that the suit was for specific performance of an agreement dated 06.06.2019, without any monetary transaction.
Application under Order VII Rule 11 CPC: The petitioner’s application for directing the plaintiff to rectify court fee deficiency was dismissed, leading to the present revision petition.
Consideration Amount and Court Fees: Justice Sarin emphasized that court fees need to be affixed based on the consideration amount. In this case, since no such amount was involved, the requirement of ad valorem court fees did not arise.
Examination of Plaint Contents: The decision highlighted that under Order VII Rule 11 CPC, only the contents of the plaint are to be considered, and not the contents of the application or the written statement.
Decision: The Court dismissed the revision petition, finding no illegality or infirmity in the impugned order and holding the petition devoid of merit. All pending applications related to the case were also disposed of.
Date of Decision: April 3, 2024.
Paras Dhawan VS Sachin Dhawan
