Supreme Court Remands Suit Valuation Dispute Back to High Court for Fresh Consideration - Emphasizes Expeditious Disposal

In a significant development, the Supreme Court has remanded a long-standing civil suit valuation dispute back to the High Court for a fresh and comprehensive consideration. The case revolves around the issue of ad valorem court fee for a suit seeking declaration and cancellation of property documents. The two-judge bench, comprising Hon'ble Justice C.T. Ravikumar and Hon'ble Justice Sudhanshu Dhulia, passed the order on July 28, 2023, after hearing the appeal challenging the High Court's earlier order.

The dispute stems from a civil suit filed in 2011 titled "Sh. Raj Pal Sharma & Anr. Vs. Smt. Pritam Devi & Ors." before the Court of Additional District Judge-II, Central District, Tis Hazari Courts, Delhi. The Trial Court dismissed applications for amendment of the plaint and subsequently rejected the entire plaint due to improper valuation and payment of court fees.

The High Court, in its earlier order, had permitted the respondent-plaintiff to amend the plaint, but the nature of the amendment sought was not clearly mentioned. The Supreme Court observed, "Various aspects of the matter arising from the application for amendment of the plaint were considered in detail by the Trial Court... without going into the sustainability or otherwise of such conclusions and findings, the High Court... set them aside and permitted the respondent to amend the plaint..."

The primary contention before the Trial Court was related to the valuation of the suit for the purposes of court fees and jurisdiction. The Trial Court had considered the law laid down in previous cases and held that the plaintiff was obliged to value the suit identically for court fee and jurisdiction, except for exceptions provided under the Court Fees Act, 1870.

The Supreme Court emphasized that several questions of relevance and importance remained unaddressed in the High Court's order. Therefore, the bench remanded the matter back to the High Court for a fresh consideration. The Court directed the High Court to allow both parties to present all legally available contentions to arrive at a proper decision in the matter. The apex court also urged the High Court to dispose of the case expeditiously, preferably within six months.

Date of Decision: July 28, 2023

B.P. Naagar & Ors. vs Raj Pal Sharma