High Court Kerala High Court

M.Leonard Ashok vs Commercial Tax Officer-I on 20 December, 2006

Kerala High Court
M.Leonard Ashok vs Commercial Tax Officer-I on 20 December, 2006
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C) No. 18330 of 2006(F)


1. M.LEONARD ASHOK,
                      ...  Petitioner

                        Vs



1. COMMERCIAL TAX OFFICER-I, CHITTUR.
                       ...       Respondent

2. DEPUTY COMMISSIONER, COMMERCIAL TAXES,

3. DEPUTY TAHSILDAR (RR), CHITTUR,

                For Petitioner  :SRI.N.MURALEEDHARAN NAIR

                For Respondent  :GOVERNMENT PLEADER

The Hon'ble the Chief Justice MR.V.K.BALI
The Hon'ble MR. Justice KURIAN JOSEPH
The Hon'ble MR. Justice K.BALAKRISHNAN NAIR

 Dated :20/12/2006

 O R D E R
                                   V.K.BALI, C.J.,

                               KURIAN JOSEPH &

                         K.BALAKRISHNAN NAIR,JJ.

                        -----------------------------------------

                            W.P(C)No.18330  of  2006

                        -----------------------------------------

                 Dated this the 20th day of  December, 2006


                                     JUDGMENT

Kurian Joseph,J.

What is the court fee to be paid in a writ petition challenging

several orders on the same set of facts and on same grounds is the

question to be considered in this case. The matter was placed before us

by reference order dated 28th July 2006 of the Division Bench. It

would be profitable to refer to the factual matrix in order to appreciate

the issue. Petitioner is an assessee under the provisions of the Kerala

Value Added Tax Act, 2003. According to him on account of

continuous loss he had stopped production during June 2005 upon due

intimation. On account of the stoppage of production statutory

monthly returns were not filed. It is the contention of the petitioner

that though there was due intimation regarding the closure of business,

notice on the proposal to levy penalty was issued in the same address

and thereafter penalty orders were passed for failure to file monthly

W.P(C)No.18330/2006

-:2:-

returns for the months of April 2005 to February 2006. The orders are

marked as Exts.P1 to P11. According to the petitioner the penalty

orders were issued in violation of the procedure under Section 67 of the

Act, for want of notice. Aggrieved by Exts.P1 to P11 petitioner has

filed revision petitions and also stay petitions which are marked as

Exts.P14 to P35 and the same are pending before the second

respondent. In the meanwhile as per Ext.P36 recovery steps were

initiated and hence the writ petition. When the writ petition came up

for admission the learned Single Judge felt that since there is challenge

on 11 penalty orders, the cause of action being multifarious, the court

fee should be paid in respect of each cause of action as held by this

court in Writ Appeal No.619/1989 and thereafter in an unregistered

writ petition by another Division Bench in the order dated 6-11-1989

wherein the view taken was that when different proceedings are

challenged in one writ petition, the petitioner is bound to pay separate

court fee in respect of each of the proceedings. In both cases

proceedings under the Kerala General Sales-tax Act were under

challenge. The only difference is that in the instant case it is monthly

W.P(C)No.18330/2006

-:3:-

returns whereas in the cases referred to above it is separate assessment

order of each year. According to the learned single Judge despite the

2003 amendment in the Kerala Court Fees and Suits Valuation Act

prescribing Rs.100/- per petitioner for the writ petition, when different

and distinct proceedings are challenged, the petitioner should pay court

fee in respect of each of the proceedings. The Division Bench in the

order under reference noted that there is another Bench decision of this

court in Somanathan v. State of Kerala, 2003 (3) KLT 1148 wherein it

was held that on interlocutory applications when more than one

petitioner joins in a writ petition, only one set of consolidated court fee

need be paid and there need not be court fee per petitioner. Inter alia it

was also noted that as the 2003 Amending Act used the expression ‘per

petitioner’ as far as an original petition filed in the High Court is

concerned, even when multifarious reliefs are clubbed in the writ

petition the court fee is to be reckoned not in respect of the cause of

action but counted in terms of the number of petitioners. The Division

Bench which referred the matter for consideration by the Full Bench is

of the opinion that “a view possible is that petitioner ought to have

W.P(C)No.18330/2006

-:4:-

challenged each penalty order by filing separate writ petition but since

common question of law is available, he can be allowed to file one writ

petition but separate set of court fees should be paid as if separate

petitions are filed challenging each penalty order. Since this is a matter

of importance, we are of the opinion that, it should be decided by a

larger bench of this Court, and hence, we adjourn the case and place

before the Honourable the Chief Justice for appropriate orders.”

2. A litigant is required to pay court fee in view of the special

services rendered to him by the State Government in the matter of

adjudication of his grievances. Under Entry 3 of list 2 of Schedule VII

of the Constitution of India it is for the State Legislature to prescribe

the court fee in the High Court and other courts. There has to be a

broad co-relationship with the fees collected and the cost of

administration of justice. The value of the subject matter of the

dispute, the procedure involved in the adjudication, the establishment

expenses etc. are some of the relevant matters in fixing the court fee.

3. The Kerala Court Fees and Suits Valuation Act, 1959 (Act 10

of 1960) was enacted to amend and consolidate the law relating to

W.P(C)No.18330/2006

-:5:-

Court Fees and Valuation of Suits in the State of Kerala. As per

Section 21 “the fee payable under this Act shall be determined or

computed in accordance with the provisions of this Chapter, (Chapter

IV) Chapter VI, Chapter IX and Schedules I and II.” Article 11 alone

deals with the court fee in respect of the original petition in the High

Court. Under Article 11 (l), original petitions not otherwise provided

for when filed in the High Court, the court fee payable is Rs.100/- per

petitioner. Prior to 5-12-1990 it was only Rs.25/- and in between till

2003 there was no fees. There was no stipulation regarding the fee

payable by each petitioner. Article 11 (r) of Schedule II of the Act

prior to its omission with effect from 5-12-1990 read as follows:-

“Petition to the High Court under Art.226 of

the Constitution for a writ other than the writ of

Habeas Corpus or a petition under Art.227 of

the Constitution. Twentyfive rupees”

Though the State intended to re-introduce the provision of court fee for

writ petitions, the same was done only by amendment to the rate as

provided under Article 11(l). The provision reads as follows:-

“11(l) Original Petitions not otherwise provided

for when filed in the High Court One hundred rupees

per petitioner.”

W.P(C)No.18330/2006

-:6:-

Article 11(t) reads as follows:-

“11(t) Application or petition presented to

the High Court and not otherwise

specifically provided for … Ten rupees”.

Prior to 2003 it was Rs.2/-. In the Bench decision in Somanathan v.

State of Kerala (supra) it is held that the application or petition referred

to in Article 11(t) is the interlocutory application and the court fee

regarding original petition (writ petition) is to be governed by Article

11(l)(iii). In Radhamma v. Srivasthava, (2003 (3) KLT 916) it is also

held that for contempt of court cases irrespective of the number of

petitioners the court fee payable is only Rs.100/-.

4. Under Schedule II of the Court Fees and Suits Valuation Act,

in contra distinction to all other Articles, Article 11(l)(iii) alone

stipulates the fee as payable per petitioner. As per Section 21 of the

Act the court fee payable is in accordance with the provisions of

Chapter IV, Chapter VI, Chapter IX and Schedules only. Chapter IV

deals with suits, Chapter VI deals with Probate, Letters of

administration and Certificates of administration, Chapter IX provides

for certain miscellaneous provisions regarding stamp, penalty, rule

W.P(C)No.18330/2006

-:7:-

making power of the High Court, Government etc. Schedule I deals

with ad valorem fees. Schedule II alone provides for the fees payable

in a writ petition. It would be profitable to note that Article 11(l) is a

residuary provision providing for original petitions not otherwise

provided for in Schedule II. As noted above Article 11(r) omitted by

Act 6 of 1999 was not re-introduced by the Amendment Act of 2003.

Article 11(r) as it originally stood specifically provided for writ

petition under Articles 226 and 227 of the Constitution of India and the

fee payable was Rs.25/-. It was in that context the earlier Division

Bench of this court held that in respect of separate cause of action when

distinct and different reliefs are sought in a writ petition, the court fee

payable is at the rate of Rs.25/- per cause of action. The Legislature

obviously did not intend to retain the concept. A new concept was

introduced by the Amendment Act of 2003 prescribing that in respect

of writ petitions in the High Court, the court fee payable is only

Rs.100/- per petitioner.

5. The Kerala High Court Act 1958 was enacted to make

provision regulating the business and exercise of the powers of the

W.P(C)No.18330/2006

-:8:-

High Court of the State of Kerala. Rules of the High Court of Kerala

1971 were framed in exercise of the powers conferred under Article

225 of the Constitution of India, Section 122 of the Code of Civil

Procedure, by the High Court. Rule 146 deals with the contents of an

original petition which reads as follows:-

“146. Contents of the applications. — Every

application shall set out the provision of law under which

it is made, the name and description of the petitioner and

the respondent, a clear and concise statement of facts, the

grounds on which the relief is sought and shall be signed

by petitioner and by his Advocate, if he has appointed

one, as in Form No.10.

Provided that no petition shall be entertained by the

Registry unless it contains a statement as to whether the

petitioner had filed any petition seeking similar reliefs in

respect of the same subject matter earlier and if so, the

result thereof.”

Rule 147 A permits more than one petitioner to join in a single writ

petition on condition that each petitioner should pay court fee as

prescribed under Schedule II of the Kerala Court Fees and Suits

Valuation Act,1959. The Rule reads as follows:-

“147A. More persons than one may join in

one Writ Petition as petitioners in whom any right to

relief in respect of or arising out of the same act or

W.P(C)No.18330/2006

-:9:-

transaction or series of acts or transactions is alleged

to exist, whether jointly, severally or in the

alternative, where, if such persons present separate

Writ Petitions, any common question of law or fact

would arise provided that each person joining in

such Writ Petition shall pay the court fee payable

under Article 11 (4) of Schedule II of the Kerala

Court Fees and Suits Valuation Act, as if each of

them had filed a separate Writ Petition.”

6. The learned Special Government Pleader contends that

in view of Section 6 of the Court Fees and Suits Valuation Act when an

original petition embraces two or more distinct or different causes of

action and separate reliefs are sought based on them, court fee should

be paid in respect of each cause of action. The section reads as

follows:-

“6. Multifarious suits. – (1) In any suit in which

separate and distinct reliefs are sought based on the

same cause of action, the plaint shall be chargeable

with a fee on the aggregate value of the reliefs:

Provided that, if a relief is sought only as

ancillary too the main relief, the plaint shall be

chargeable only on the value of the main reliefs.

(2) Where more reliefs than one based on the

same cause of action are sought in the alternative in

any suit, the plaint shall be chargeable with the

highest of the fees leviable in respect of any one of

W.P(C)No.18330/2006

-:10:-

the reliefs.

(3) Where a suit embraces two or more distinct

and different causes of action and separate reliefs are

sought based on them, either alternatively or

cumulatively, the plaint shall be chargeable with the

aggregate amount of the fees with which plaints

would be chargeable under this Act if separate suits

were instituted in respect of the several causes of

action:

Provided that, where the causes of action in

respect of reliefs claimed alternatively against the

same person arise out of the same transaction, the

plaint shall be chargeable only with the highest of the

fees chargeable on them.

Nothing in the sub-section shall be deemed to

affect any power conferred upon a Court under Rule 6

of Order II of the Code of Civil Procedure, 1908

(Central Act V of 1908).

(4) The provisions of this section shall apply

mutatis mutandis to memoranda of appeals,

applications, petitions and written statements.

Explanation. — For the purpose of this section, a

suit for possession of immovable property and for

mesne profits shall be deemed to be based on the

same cause of action.”

At the outset it has to be noted that the provision deals with only suits

and not original petitions in the High Court. The expression ‘petition’

W.P(C)No.18330/2006

-:11:-

under Section 6(4) is intended to provide for petitions filed in the suit

and not an original petition. The learned Government Pleader invited

our attention to the interpretation given to the section under the

provisions of the Madras Court Fees and Suits Valuation Act, 1955.

Section 6 herein is identically worded. A learned single Judge of the

Madras High Court in R.Sethupathi v. The State, AIR 1957 Madras

570, observed that the petitioner referred to in Section 6(4) would

include writ petitions also. We are afraid the interpretation does not

reflect the correct position in law. It has to be noted that the court fee

payable in a suit is ad valorem. Hence only it is stipulated in Section 6

(3) that where a suit embraces two or more different and distinct causes

of action and separate reliefs are sought based on them, the plaint

should be valued on the aggregate amount of plaint claim for the

purpose of court fees. It is also to be noted that under the Madras

Court Fees and Suits Valuation Act, 1955, the court fee prescribed

under Appendix II, Article 11(l) (iii) in respect of original petitions not

otherwise provided for is only Rs.20/- at the relevant time. There is no

stipulation in the Schedule regarding the fees to be paid by each

W.P(C)No.18330/2006

-:12:-

petitioner when more than one person join in a writ petition. Under the

Kerala Act the scheme is different. In the matter of payment of court

fee in a writ petition the same is to be computed in terms of the

number of petitioners in a writ petition. There is no stipulation in the

Schedule or in the High Court Rules with regard to payment of court

fee in respect of each cause of action. That does not mean that a writ

petitioner can consolidate all his grievances in a bundle of facts and file

one writ petition. It would only mean that in a writ petition based on

the same set of facts and on the very same question of law a writ

petitioner need pay only one set of court fee, namely Rs.100/-. The

facts in the instant case are almost identical to that of the case

considered by the Supreme Court in Chandra Bhan Gosain v. State of

Orissa, AIR 1967 SC 767, wherein it has been held that in a petition

under Article 226 challenging the validity of various assessment orders

there was only one proceeding and hence in the appeal to the Supreme

Court there need only be one set of court fee.

7. In this context it would also be profitable to refer to the

contents of Form No.10 prescribed under Rule 146 of the Rules of the

W.P(C)No.18330/2006

-:13:-

High Court of Kerala in the matter of original petitions. The format

reads as follows:-

“Form No.10 (Rule 146)

In the High Court of Judicature, Kerala

(Special Original Jurisdiction)

Original Petition No…………of 19…..

BETWEEN

AB………..Petitioner

And

C.D. ……..Respondent

Petition under Article 226 of the Constitution of India. The

petitioner above named states as follows:

1. The petitioner is (give description and address). The address

of the petitioner for service of all notices is…….

2. The respondent is (give description and address)

3.*[Here set out the facts].

4. (Here set out the grounds for relief)

5. For the reasons set out above and in the affidavit filed

herewith the petitioner prays that (set out the reliefs sought) **

[including the interim reliefs].

(Sd) Petitioner.

Date......                                  (Sd) Advocate for petitioner."


W.P(C)No.18330/2006

                                             -:14:-


The Form also indicates that even if there are several reliefs, there need

only be one writ petition in case the reliefs arise out of the same set of

facts and rest on same set of grounds.

8. One of the reliefs prayed for in the writ petition is a

direction to the second respondent to dispose of Ext.P14 to P24

revision petitions filed against Exts.P1 to P11 orders of penalty. The

main ground in the writ petition is that the impugned orders have been

passed without notice to the petitioner, in violation of the procedure

prescribed under Section 67 of the Kerala Value Added Tax Act 2003.

According to the petitioner, as soon as he received notice he has taken

steps under Section 22 of the Act and hence he is not liable to be

visited with any penalty. Since appreciation of facts is also involved in

the case it is only appropriate that the statutory authority considers the

revision petitions. Accordingly we direct the second respondent to

consider and dispose of Exts.P14 to P24 revision petitions

expeditiously, with notice and opportunity for hearing to the petitioner.

Pending disposal of the revision petitions, the second respondent shall

consider and pass orders on Exts.P25 to P35 stay petitions within one

W.P(C)No.18330/2006

-:15:-

month from today. Till such time, the recovery steps pursuant to

Ext.P36 demand notice will be kept in abeyance.

The writ petition is disposed of as above.

(V.K.BALI, CHIEF JUSTICE)

(KURIAN JOSEPH, JUDGE)

(K.BALAKRISHNAN NAIR JUDGE)

ahg.