{"id":261993,"date":"2010-05-07T00:00:00","date_gmt":"2010-05-06T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/satheedevi-vs-prasanna-anr-on-7-may-2010"},"modified":"2018-09-17T19:28:20","modified_gmt":"2018-09-17T13:58:20","slug":"satheedevi-vs-prasanna-anr-on-7-may-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/satheedevi-vs-prasanna-anr-on-7-may-2010","title":{"rendered":"Satheedevi vs Prasanna &amp; Anr on 7 May, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Satheedevi vs Prasanna &amp; Anr on 7 May, 2010<\/div>\n<div class=\"doc_author\">Author: G Singhvi<\/div>\n<div class=\"doc_bench\">Bench: G.S. Singhvi, Asok Kumar Ganguly<\/div>\n<pre id=\"pre_1\">                                                                       REPORTABLE\n\n\n                   IN THE SUPREME COURT OF INDIA\n                   CIVIL APPELLATE JURISDICTION\n\n\n                   CIVIL APPEAL NO.4347 OF 2010\n                (Arising out of S.L.P. (C) No.3597 of 2009)\n\n\nSatheedevi                                         .......Appellant\n\n                                   Versus\n\n\nPrasanna and another                               .......Respondents\n\n\n\n\n                             JUDGMENT\n<\/pre>\n<p id=\"p_1\">G.S. Singhvi, J.\n<\/p>\n<p id=\"p_1\">\n<p id=\"p_2\">1.    Leave granted.\n<\/p>\n<p id=\"p_3\">\n<p id=\"p_4\">2.    This appeal filed for setting aside order dated 21.7.2008 passed by the<\/p>\n<p>learned Single Judge of Kerala High Court in Writ Petition No.21820 of<\/p>\n<p>2008 whereby he declined to interfere with the direction given by Sub Judge,<\/p>\n<p>Palakkad (hereinafter described as `the trial Court&#8217;) to the appellant to pay<\/p>\n<p>court fee on the market value of the plaint schedule property raises an<\/p>\n<p>important question of law relating to interpretation of Section 40 of the<\/p>\n<p>Kerala Court-Fees and <a href=\"\/doc\/867444\/\" id=\"a_1\">Suits Valuation Act<\/a>, 1959 (for short, `the Act&#8217;).<br \/>\n<span class=\"hidden_text\" id=\"span_1\">                                                                            2<\/span><\/p>\n<p id=\"p_5\">3.    The appellant owned 9.98 acres rubber plantation.          She executed<\/p>\n<p>power of attorney No.376\/2006 in favour of her own daughter (respondent<\/p>\n<p>No.1 herein). After sometime, respondent No.1 transferred the property to<\/p>\n<p>her husband (respondent No.2 herein) by registered sale deed No.1784\/2007.<\/p>\n<p>The appellant filed O.S. No.231\/2007 for cancellation of the power of<\/p>\n<p>attorney by alleging that respondent No.1 had misused the same and sold the<\/p>\n<p>property to her husband.     By an order dated 21.5.2008, the trial Court<\/p>\n<p>directed the appellant to pay court fees on the market value of the plaint<\/p>\n<p>schedule property. The appellant challenged that order in Writ Petition<\/p>\n<p>No.17032\/2008 (C) which was disposed of by the learned Single Judge of<\/p>\n<p>Kerala High Court vide his order dated 26.6.2008, the relevant portion of<\/p>\n<p>which reads as under:\n<\/p>\n<blockquote id=\"blockquote_1\"><p>      &#8220;The learned counsel appearing for the petitioner further<br \/>\n      submitted that in view of the contentions raised in the plaint,<br \/>\n      petitioner has to file an application for amendment of the plaint<br \/>\n      modifying the relief sought for. In the nature of the contentions<br \/>\n      raised in the plaint, an amendment of the relief is definitely<br \/>\n      necessary, as found by the learned Sub Judge. In such<br \/>\n      circumstances, Writ Petition is disposed granting liberty to the<br \/>\n      petitioner to amend the plaint and to pay the necessary court fee<br \/>\n      payable on such pleading. It is made clear that the fact that a<br \/>\n      time limit is fixed by this Court will not prevent the court from<br \/>\n      granting amendment, as it is necessary for an appropriate<br \/>\n      adjudication of the dispute involved in the suit. It is made clear<br \/>\n      that the actual court fee payable by the plaintiff is to be decided<br \/>\n      by the trial Court afresh, taking into consideration the relief<br \/>\n      sought for in the plaint, in the light of the amendment of the<br \/>\n      pleading.&#8221;\n<\/p><\/blockquote>\n<p><span class=\"hidden_text\" id=\"span_1\">                                                                            3<\/span><\/p>\n<p id=\"p_6\">4.    In furtherance of the direction given by the High Court, the appellant<\/p>\n<p>applied for and she was granted permission to amend the plaint and to<\/p>\n<p>incorporate prayer for cancellation of the sale deed executed by respondent<\/p>\n<p>No.1 in favour of respondent No.2.      In the amended plaint, value of the<\/p>\n<p>property was shown as Rs.7,00,000\/- and accordingly, the court fees was<\/p>\n<p>paid. However by an order dated 3.7.2008, the trial Court directed the<\/p>\n<p>appellant to pay court fee on the market value of the plaint schedule property<\/p>\n<p>which was assessed at Rs.12 lakhs per acre.\n<\/p>\n<p id=\"p_7\">\n<p id=\"p_8\">5.    Writ Petition No.21820\/2008 filed by the appellant against the above<\/p>\n<p>mentioned order was dismissed by the learned Single Judge, who referred to<\/p>\n<p>the judgments of the Division Bench in Krishnan Damodaran v.<\/p>\n<p>Padmanabhan Parvathy (1972) Kerala Law Times 774, <a href=\"\/doc\/4155\/\" id=\"a_1\">P.K. Vasudeva<\/p>\n<p>Rao v. Hari Menon<\/a> AIR 1982 Kerala 35 and <a href=\"\/doc\/332195\/\" id=\"a_2\">Pachayammal v.<\/p>\n<p>Dwaraswamy Pillai<\/a> (2006) 3 Kerala Law Times 527 and held that in terms<\/p>\n<p>of <a href=\"\/doc\/867444\/\" id=\"a_3\">Section 40<\/a> of the Act, the writ petitioner is required to pay court fees on<\/p>\n<p>market value of the property and not on the value specified in the sale deed.<\/p>\n<p id=\"p_9\">6.    Shri Bechu Kurian Thomas, learned counsel for the appellant argued<\/p>\n<p>that the interpretation placed by the trial Court and the High Court on<\/p>\n<p><a href=\"\/doc\/867444\/\" id=\"a_4\">Section 40<\/a> of the Act is ex facie erroneous and impugned order is liable to<\/p>\n<p>be set aside because that section does not provide for payment of court fee<br \/>\n<span class=\"hidden_text\" id=\"span_2\">                                                                           4<\/span><\/p>\n<p>on the market value of the property for which the document, which is subject<\/p>\n<p>matter of the suit, was executed. Learned counsel emphasized that in terms<\/p>\n<p>of <a href=\"\/doc\/867444\/\" id=\"a_5\">Section 40(1)<\/a>, court fees is required to be paid on the value of the<\/p>\n<p>property for which the document was executed and submitted that the<\/p>\n<p>appellant had correctly paid the court fees as per the value of the property<\/p>\n<p>specified in the sale deed i.e., Rs. 7 lakhs. In support of his arguments, the<\/p>\n<p>learned counsel relied upon the judgments of the learned Single Judges of<\/p>\n<p>Madras High Court in <a href=\"\/doc\/525290\/\" id=\"a_6\">Andalammal v. B. Kannaiah<\/a> (1971) 2 Madras Law<\/p>\n<p>Journal 205 and of Andhra Pradesh High Court in <a href=\"\/doc\/665179\/\" id=\"a_7\">Allam Venkateswara<\/p>\n<p>Reddy v. Golla Venkatanarayana and others<\/a> AIR 1975 Andhra Pradesh<\/p>\n<p id=\"p_10\">122.<\/p>\n<p id=\"p_11\">7.     Shri T.L.V. Iyer, learned senior counsel appearing for the respondent<\/p>\n<p>argued that the expression `value of the property&#8217; for which the document<\/p>\n<p>was executed means market value of the property and the same cannot be<\/p>\n<p>read as value specified in the document. Learned senior counsel submitted<\/p>\n<p>that different High Courts have, following the judgment of the Full Bench of<\/p>\n<p>Madras High Court in <a href=\"\/doc\/204726\/\" id=\"a_8\">Kutumba Sastri v. Sundaramma<\/a> AIR 1939 Madras<\/p>\n<p>462, consistently held that the market value of the property has to be taken<\/p>\n<p>into consideration for the purpose of payment of the court fees. Learned<\/p>\n<p>senior counsel relied upon the judgments of different High Courts &#8211;<\/p>\n<p>Appikunju Meerasayu v. Meeran Pillai (1964) Kerala Law Times 895,<br \/>\n<span class=\"hidden_text\" id=\"span_3\">                                                                            5<\/span><\/p>\n<p>Uma Antherjanam v. Govindaru Namboodiripad and others (1966)<\/p>\n<p>Kerala Law Times 1046, <a href=\"\/doc\/688449\/\" id=\"a_9\">T. Tharamma v. T. Ramchandra Reddy and<\/p>\n<p>others<\/a> AIR 1968 Andhra Pradesh 333, <a href=\"\/doc\/887206\/\" id=\"a_10\">Sengoda Nadar v. Doraiswami<\/p>\n<p>Gounder and others<\/a> AIR 1971 Madras 380, <a href=\"\/doc\/665179\/\" id=\"a_11\">Allam Venkateswara Reddy<\/p>\n<p>v. Golla Venkatanarayana<\/a> and others (supra), <a href=\"\/doc\/1090415\/\" id=\"a_12\">S. Krishna Nair and<\/p>\n<p>another v. N. Rugmoni Amma<\/a> AIR 1976 Madras 208 and <a href=\"\/doc\/1234610\/\" id=\"a_13\">Smt. Narbada<\/p>\n<p>v. Smt. Aashi<\/a> AIR 1987 Rajasthan 162 and argued that the learned Single<\/p>\n<p>Judge did not commit any error by refusing to interfere with the order of the<\/p>\n<p>trial Court.\n<\/p>\n<p id=\"p_12\">\n<p id=\"p_13\">8.     We have considered the respective submissions. <a href=\"\/doc\/64892\/\" id=\"a_14\">Sections 7(1)<\/a> (2) (3)<\/p>\n<p>(3A) (4), 25(a) (b), 27(a), 29, 30, 37(1) (3), 38, 40, 45 and 48 of the Act<\/p>\n<p>which have bearing on the issue raised by the appellant, read as under:<\/p>\n<blockquote id=\"blockquote_1\"><p>       &#8220;7.     Determination of market value<\/p>\n<p>       (1) Save as otherwise provided, where the fee payable under<br \/>\n       this Act depends on the market value of any property, such<br \/>\n       value shall be determined as on the date of presentation of the<br \/>\n       plaint.\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_2\"><p>       (2) The market value of agricultural land in suits falling<br \/>\n       under <a href=\"\/doc\/867444\/\" id=\"a_15\">Section 25(a)<\/a>, <a href=\"\/doc\/867444\/\" id=\"a_16\">25(b)<\/a>, <a href=\"\/doc\/867444\/\" id=\"a_17\">27(a)<\/a>, <a href=\"\/doc\/867444\/\" id=\"a_18\">29<\/a>, <a href=\"\/doc\/867444\/\" id=\"a_19\">30<\/a>, <a href=\"\/doc\/867444\/\" id=\"a_20\">37(1)<\/a>, <a href=\"\/doc\/867444\/\" id=\"a_21\">37(3)<\/a>, <a href=\"\/doc\/867444\/\" id=\"a_22\">38<\/a>, <a href=\"\/doc\/867444\/\" id=\"a_23\">45<\/a> or<br \/>\n       48 shall be deemed to be ten times the annual gross profits of<br \/>\n       such land where it is capable of yielding annual profits minus<br \/>\n       the assessment if any made to the Government.\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_3\"><p>       (3) The market value of a building shall in cases where its<br \/>\n       rental value has been entered in the registers of any local<br \/>\n       authority, be ten times such rental value and in other cases the<br \/>\n       actual market value of the building as on the date of the plaint.\n<\/p><\/blockquote>\n<p><span class=\"hidden_text\" id=\"span_4\">                                                                          6<\/span><\/p>\n<p id=\"p_14\">(3A) The market value of any property other than agricultural<br \/>\nland and building falling under sub-sections (2) and (3) shall be<br \/>\nthe value it will fetch on the date of institution of the suit.<\/p>\n<p>(4) Where the subject-matter of the suit is only a restricted or<br \/>\nfractional interest in a property, the market value of the<br \/>\nproperty shall be deemed to be the value of the restricted or<br \/>\nfractional interest and the value of the restricted or fractional<br \/>\ninterest shall bear the same proportion to the market value of<br \/>\nthe absolute interest in such property as the net income derived<br \/>\nby the owner of the restricted or fractional interest bears to the<br \/>\ntotal net income from the property.\n<\/p>\n<p id=\"p_15\">25. Suits for declaration.- In a suit for a declaratory decree<br \/>\nor order, whether with or without consequential relief, not<br \/>\nfalling under <a href=\"\/doc\/867444\/\" id=\"a_24\">Section 26-<\/a>\n<\/p>\n<p id=\"p_16\">(a) where the prayer is for a declaration and for possession<br \/>\nof the property to which the declaration relates, fee shall be<br \/>\ncomputed on the market value of the property or on rupees one<br \/>\nthousand whichever is higher;\n<\/p>\n<p id=\"p_17\">(b) where the prayer is for a declaration and for<br \/>\nconsequential injunction and the relief sought is with reference<br \/>\nto any immovable property, fee shall be computed on one-half<br \/>\nof the market value of the property or on rupees one thousand,<br \/>\nwhichever is higher;\n<\/p>\n<p id=\"p_18\">27.     Suits for injunction.- In a suit for injunction-<\/p>\n<p id=\"p_19\">(a) Where the reliefs sought is with reference to any<br \/>\nimmovable property, and<\/p>\n<p id=\"p_20\">      (i)    where the plaintiff alleges that his title to the property<br \/>\n      is denied, or<\/p>\n<p id=\"p_21\">      (ii) where an issue is framed regarding the plaintiff&#8217;s title<br \/>\n      to the property,<\/p>\n<p>      fee shall be computed on one-half of the market value of the<br \/>\n      property or on rupees five hundred, whichever is higher;<\/p>\n<p id=\"p_22\">29. Suits for possession under the <a href=\"\/doc\/1671917\/\" id=\"a_25\">Specific Relief Act<\/a>,<br \/>\n1877.- In a suit for possession of immovable property under<br \/>\n<a href=\"\/doc\/1112600\/\" id=\"a_26\">Section 9<\/a> of the Specific Relief Act, 1877 <a href=\"\/doc\/110162683\/\" id=\"a_27\">(Central Act<\/a> 1 of<br \/>\n<span class=\"hidden_text\" id=\"span_5\">                                                                    7<\/span><\/p>\n<p>1877), fee shall be computed on one-third of the market value<br \/>\nof the property or on rupees one hundred and fifty, whichever is<br \/>\nhigher.\n<\/p>\n<p id=\"p_23\">30. Suits for possession not otherwise provided for.- In a<br \/>\nsuit for possession of immovable property not otherwise<br \/>\nprovided for, fee shall be computed, on the market value of the<br \/>\nproperty or on rupees one thousand, whichever is higher.<\/p>\n<p id=\"p_24\">37.   Partition suits<\/p>\n<p>(1) In a suit for partition and separate possession of a share<br \/>\nof joint family property or of property owned, jointly or in<br \/>\ncommon, by a plaintiff who has been excluded from possession<br \/>\nof such property, fee shall be computed on the market value of<br \/>\nthe plaintiff&#8217;s share.\n<\/p>\n<p id=\"p_25\">(2)   xxx                xxx                 xxx<\/p>\n<p>(3) Where, in a suit falling under sub-section (1) or sub-<br \/>\nsection (2), a defendant claims partition and separate possession<br \/>\nof his share of the property, fee shall be payable on his written<br \/>\nstatement computed on half the market value of his share or at<br \/>\nhalf the rates specified in sub-section (2), according as such<br \/>\ndefendant has been excluded from possession or is in joint<br \/>\npossession.\n<\/p>\n<p id=\"p_26\">38. Suits for joint possession.- In a suit for joint possession<br \/>\nof joint family property or of property owned, jointly or in<br \/>\ncommon, by a plaintiff who has been excluded from possession,<br \/>\nfee shall be computed on the market value of the plaintiff&#8217;s<br \/>\nshare.\n<\/p>\n<p id=\"p_27\">40.   Suits for cancellation of decrees, etc.-\n<\/p>\n<p id=\"p_28\">(1) In a suit for cancellation of a decree for money or other<br \/>\nproperty having a money value, or other document which<br \/>\npurports or operates to create, declare, assign, limit or<br \/>\nextinguish, whether in present or in future, any right, title or<br \/>\ninterest in money, movable or immovable property, fee shall be<br \/>\ncomputed on the value of the subject-matter of the suit, and<br \/>\nsuch value shall be deemed to be&#8211;\n<\/p>\n<p><span class=\"hidden_text\" id=\"span_6\">                                                                     8<\/span><\/p>\n<p id=\"p_29\">\n<p id=\"p_30\">      if the whole decree or other document is sought to be<br \/>\ncancelled, the amount or value of the property for which the<br \/>\ndecree was passed or other document was executed;<\/p>\n<p id=\"p_31\">      if a part of the decree or other document is sought to be<br \/>\ncancelled, such part of the amount or value of the property.<\/p>\n<p>(2) If the decree or other document is such that the liability<br \/>\nunder it cannot be split up and the relief claimed relates only to<br \/>\na particular item of property belonging to the plaintiff or to the<br \/>\nplaintiff&#8217;s share in any such property, fee shall be computed on<br \/>\nthe value of such property, or share or on the amount of the<br \/>\ndecree, whichever is less.\n<\/p>\n<p id=\"p_32\">Explanation.-      A suit to set aside an award shall be deemed<br \/>\nto be a suit to set aside a decree within the meaning of this<br \/>\nsection.\n<\/p>\n<p id=\"p_33\">45. Suits under the Survey and Boundaries Act.-In a suit<br \/>\nunder Section 14 of the Madras Survey and Boundaries Act,<br \/>\n1923, Section 13 of the Travancore Survey and Boundaries Act<br \/>\nof 1094, or Section 14 of the Cochin Survey Act, II of 1074, fee<br \/>\nshall be computed on one-half of the market value of the<br \/>\nproperty affected by the determination of the boundary or on<br \/>\nrupees one thousand, whichever is higher.\n<\/p>\n<p id=\"p_34\">48.   Interpleader suits.\n<\/p>\n<p id=\"p_35\">(1) In an interpleader suit, fee shall be payable on the plaint<br \/>\nat the rates specified in <a href=\"\/doc\/1671917\/\" id=\"a_28\">Section 50<\/a>.\n<\/p>\n<p id=\"p_36\">(2) Where issues are framed as between the claimants, fee<br \/>\nshall be payable computed on the amount of the debt or the<br \/>\nmoney or the market value of other property, movable or<br \/>\nimmovable, which forms the subject-matter of the suit. In<br \/>\nlevying such fee, credit shall be given for the fee paid on the<br \/>\nplaint; and the balance of the fee shall be paid in equal shares<br \/>\nby the claimants who claim the debt or the sum of money or the<br \/>\nproperty adversely to each other.\n<\/p>\n<p id=\"p_37\">(3) Value for the purpose of determining the jurisdiction of<br \/>\nCourts shall be the amount of the debt, or the sum of money or<br \/>\nthe market value of other property to which the suit relates.&#8221;<br \/>\n<span class=\"hidden_text\" id=\"span_7\">                                                                            9<\/span><\/p>\n<p id=\"p_38\">9.    <a href=\"\/doc\/515526\/\" id=\"a_29\">Section 7<\/a> (iv), (iv-A) (as inserted by Madras Act of 1922) and (v) of<\/p>\n<p>the <a href=\"\/doc\/138097064\/\" id=\"a_30\">Court-fees Act<\/a>, 1870 (for short, `the <a href=\"\/doc\/138097064\/\" id=\"a_31\">Court-fees Act<\/a>&#8216;), which have been<\/p>\n<p>considered in various judgments of Madras High Court relied upon by<\/p>\n<p>learned counsel for the respondents reads as under:-<\/p>\n<blockquote id=\"blockquote_4\"><p>      &#8220;7. Computation of fees payable in certain suits.- The<br \/>\n      amount of fee payable under this Act in the suits next<br \/>\n      hereinafter mentioned shall be computed as follows:- &#8221;\n<\/p><\/blockquote>\n<pre id=\"pre_1\">                   xxx          xxx           xxx\n\n      (iv)   In suits-\n\n<\/pre>\n<blockquote id=\"blockquote_5\"><p>      for movable property of no market-value.-(a) for moveable<br \/>\n      property where the subject-matter has no market-value, as, for<br \/>\n      instance, in the case of documents relating to title,<br \/>\n      to enforce a right to share in joint family property.-(b) to<br \/>\n      enforce the right to share in any property on the ground that it is<br \/>\n      joint family property,<br \/>\n      for a declaratory decree and consequential relief.-(c) to<br \/>\n      obtain a declaratory decree or order, where consequential relief<br \/>\n      is prayed,<br \/>\n      for an injunction.-(d) to obtain an injunction,<br \/>\n      for easements.-(e) for a right to some benefit (not herein<br \/>\n      otherwise provided for) to arise out of land, and<br \/>\n      for accounts.-(f) for accounts-\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_6\"><p>      according to the amount at which the relief sought is valued in<br \/>\n      the plaint or memorandum of appeal;<\/p><\/blockquote>\n<p id=\"p_39\">\n<p id=\"p_40\">      In all such suits the plaintiff shall state the amount at which he<br \/>\n      values the relief sought<\/p>\n<p>      (iv-A)        In a suit for cancellation of a decree for money or<br \/>\n      other property having a money value or other document<br \/>\n      securing money or other property having such value, the<br \/>\n      valuation should be according to the value of the subject-matter<br \/>\n      of the suit and such value shall be if the whole decree is sought<br \/>\n      to be cancelled, the amount or value of the property for which<br \/>\n      the decree was passed, and if a portion of the decree is sought<br \/>\n<span class=\"hidden_text\" id=\"span_8\">                                                                   1<\/span><\/p>\n<p>to be cancelled, such part of the amount or value of the<br \/>\nproperty.\n<\/p>\n<p id=\"p_41\">                               (added by Madras Act of 1922)<\/p>\n<p>for possession of land, houses and gardens.- (v) In suits for<br \/>\nthe possession of land, houses, and gardens &#8211; according to the<br \/>\nvalue of the subject-matter; and such value shall be deemed to<br \/>\nbe-\n<\/p>\n<p id=\"p_42\">where the subject-matter is land, and-\n<\/p>\n<p id=\"p_43\">(a)   where the land forms an entire estate, or a definite share<br \/>\n      of an estate, paying annual revenue to Government,<br \/>\n      or forms part of such an estate and is recorded in the<br \/>\n      Collector&#8217;s register as separately assessed with such<br \/>\n      revenue;\n<\/p>\n<p id=\"p_44\">      and such revenue is permanently settled &#8211; ten times the<br \/>\n      revenue so payable;\n<\/p>\n<p id=\"p_45\">(b)   where the land forms an entire estate, or a definite share<br \/>\n      of an estate, paying annual revenue to Government, or<br \/>\n      forms part of such estate and is recorded as aforesaid;<br \/>\n      and such revenue is settled, but not permanently &#8211;<br \/>\n      five times the revenue so payable;\n<\/p>\n<p id=\"p_46\">(c)   where the land pays no such revenue, or has been<br \/>\n      partially exempted from such payment, or is charged with<br \/>\n      any fixed payment in lieu of such revenue,<br \/>\n      and net profits have arisen from the land during the year<br \/>\n      next before the date of presenting the plaint &#8211;\n<\/p>\n<p id=\"p_47\">      fifteen times such net profits;\n<\/p>\n<p id=\"p_48\">      but where no such net profits have arisen therefrom &#8211; the<br \/>\n      amount at which the Court shall estimate the land with<br \/>\n      reference to the value of similar land in the<br \/>\n      neighbourhood;\n<\/p>\n<p id=\"p_49\">(d)   where the land forms part of an estate paying revenue to<br \/>\n      Government, but is not a definite share of such estate and<br \/>\n      is not separately assessed as above-mentioned &#8211; the<br \/>\n      market-value of the land:&#8221;\n<\/p>\n<p><span class=\"hidden_text\" id=\"span_9\">                                                                              1<\/span><\/p>\n<p id=\"p_50\">\n<p id=\"p_51\">10.   Before proceeding further, we may notice two well recognized rules<\/p>\n<p>of interpretation of statutes. The first and primary rule of construction is that<\/p>\n<p>the intention of the legislature must be found in the words used by the<\/p>\n<p>legislature itself. If the words used are capable of one construction, only then<\/p>\n<p>it would not be open to the courts to adopt any other hypothetical<\/p>\n<p>construction on the ground that such hypothetical construction is more<\/p>\n<p>consistent with the alleged object and policy of the Act. The words used in<\/p>\n<p>the material provisions of the statute must be interpreted in their plain<\/p>\n<p>grammatical meaning and it is only when such words are capable of two<\/p>\n<p>constructions that the question of giving effect to the policy or object of the<\/p>\n<p>Act can legitimately arise &#8211; <a href=\"\/doc\/1057826\/\" id=\"a_32\">Kanai Lal Sur v. Paramnidhi Sadhukhan<\/a><\/p>\n<p>1958 SCR 360. The other important rule of interpretation is that the Court<\/p>\n<p>cannot rewrite, recast or reframe the legislation because it has no power to<\/p>\n<p>do so. The Court cannot add words to a statute or read words which are not<\/p>\n<p>therein it. Even if there is a defect or an omission in the statute, the Court<\/p>\n<p>cannot correct the defect or supply the omission. &#8211; <a href=\"\/doc\/92507\/\" id=\"a_33\">Union of India v. Deoki<\/p>\n<p>Nandan Aggarwal<\/a> 1992 Supp (1) SCC 323, <a href=\"\/doc\/83927\/\" id=\"a_34\">Shyam Kishori Devi v. Patna<\/p>\n<p>Municipal Corporation<\/a> (1966) 3 SCR 366.\n<\/p>\n<p id=\"p_52\">\n<p id=\"p_53\">11.   <a href=\"\/doc\/515526\/\" id=\"a_35\">Section 7<\/a> of the Act lays down different modes for determination of<\/p>\n<p>the market value of the property for the purpose of payment of court fee.<\/p>\n<p>Sub-section (1) of <a href=\"\/doc\/515526\/\" id=\"a_36\">Section 7<\/a> begins with the expression &#8220;Save as otherwise<br \/>\n<span class=\"hidden_text\" id=\"span_10\">                                                                                 1<\/span><\/p>\n<p>provided&#8221; and lays down that where the fee payable under the Act depends<\/p>\n<p>on the market value of any property, such value shall be determined as on<\/p>\n<p>the date of presentation of the plaint. From the plain language of <a href=\"\/doc\/515526\/\" id=\"a_37\">Section<\/p>\n<p>7(1)<\/a>, it is evident that it merely specifies the methodology for determination<\/p>\n<p>of the market value of the property where the court fee payable under some<\/p>\n<p>other provisions of the Act depends on the market value of the property<\/p>\n<p>which is subject matter of the suit. <a href=\"\/doc\/228220\/\" id=\"a_38\">Sections 25<\/a>, <a href=\"\/doc\/357591\/\" id=\"a_39\">27<\/a>, <a href=\"\/doc\/1585615\/\" id=\"a_40\">29<\/a>, <a href=\"\/doc\/855953\/\" id=\"a_41\">30<\/a>, <a href=\"\/doc\/1314688\/\" id=\"a_42\">37<\/a>, <a href=\"\/doc\/1474155\/\" id=\"a_43\">38<\/a>, <a href=\"\/doc\/1671917\/\" id=\"a_44\">45<\/a> and <a href=\"\/doc\/1671917\/\" id=\"a_45\">48<\/a><\/p>\n<p>deal with different kinds of suit i.e., suits for declaration, suits for injunction,<\/p>\n<p>suits for possession under the <a href=\"\/doc\/1671917\/\" id=\"a_46\">Specific Relief Act<\/a>, 1877, suits for possession<\/p>\n<p>not otherwise provided for, partition suits, suits for joint possession, suits<\/p>\n<p>under the Survey and Boundaries Act and interpleader suits. These sections<\/p>\n<p>provide for payment of court fee computed on the market value of the<\/p>\n<p>property.    Sub-section (2) of <a href=\"\/doc\/515526\/\" id=\"a_47\">Section 7<\/a> lays down that the market value of<\/p>\n<p>the agricultural land in suits falling under <a href=\"\/doc\/228220\/\" id=\"a_48\">Sections 25(a)<\/a>, <a href=\"\/doc\/228220\/\" id=\"a_49\">25(b)<\/a>, <a href=\"\/doc\/357591\/\" id=\"a_50\">27(a)<\/a>, <a href=\"\/doc\/1585615\/\" id=\"a_51\">29<\/a>,<\/p>\n<p><a href=\"\/doc\/855953\/\" id=\"a_52\">30<\/a>, <a href=\"\/doc\/747417\/\" id=\"a_53\">37(1)<\/a>, <a href=\"\/doc\/1314688\/\" id=\"a_54\">37(3)<\/a>, <a href=\"\/doc\/1474155\/\" id=\"a_55\">38<\/a>, <a href=\"\/doc\/1671917\/\" id=\"a_56\">45<\/a> and <a href=\"\/doc\/1671917\/\" id=\"a_57\">48<\/a> shall be deemed to be ten times the annual<\/p>\n<p>gross profits of such land where it is capable of yielding annual profits<\/p>\n<p>minus the assessment, if any, made by the Government. In terms of sub-<\/p>\n<p>section (3), the market value of a building in cases where its rental value has<\/p>\n<p>been entered in the registers of any local authority, shall be ten times such<\/p>\n<p>rental value and in other cases, the actual market value of the building as on<\/p>\n<p>the date of the plaint. Clause (a) of sub-section (3) lays down that market<\/p>\n<p>value of any property other than agricultural land and building shall be the<br \/>\n<span class=\"hidden_text\" id=\"span_11\">                                                                             1<\/span><\/p>\n<p>value it will fetch on the date of institution of the suit. Sub-section (4) lays<\/p>\n<p>down that where subject matter of the suit is only a restricted or fractional<\/p>\n<p>interest in a property, the market value of the property shall be deemed to be<\/p>\n<p>the value of the restricted or fractional interest. <a href=\"\/doc\/1080998\/\" id=\"a_58\">Section 40<\/a> deals with suits<\/p>\n<p>for cancellation of decrees etc. which are not covered by other sections. If<\/p>\n<p>this section is interpreted in the light of the expression `save as otherwise<\/p>\n<p>provided&#8217; used in <a href=\"\/doc\/515526\/\" id=\"a_59\">Section 7(1)<\/a>, it becomes clear that the rule enshrined<\/p>\n<p>therein is a clear departure from the one contained in <a href=\"\/doc\/515526\/\" id=\"a_60\">Section 7<\/a> read with<\/p>\n<p><a href=\"\/doc\/228220\/\" id=\"a_61\">Sections 25<\/a>, <a href=\"\/doc\/357591\/\" id=\"a_62\">27<\/a>, <a href=\"\/doc\/1585615\/\" id=\"a_63\">29<\/a>, <a href=\"\/doc\/855953\/\" id=\"a_64\">30<\/a>, <a href=\"\/doc\/1314688\/\" id=\"a_65\">37<\/a>, <a href=\"\/doc\/1474155\/\" id=\"a_66\">38<\/a>, <a href=\"\/doc\/1671917\/\" id=\"a_67\">45<\/a> and <a href=\"\/doc\/1671917\/\" id=\"a_68\">48<\/a> which provide for payment of<\/p>\n<p>court fee on the market value of the property. In that sense, <a href=\"\/doc\/1080998\/\" id=\"a_69\">Section 40<\/a><\/p>\n<p>contains a special rule.     <a href=\"\/doc\/254017\/\" id=\"a_70\">Section 40(1)<\/a> lays down that in a suit for<\/p>\n<p>cancellation of a decree for money or other property having a money value,<\/p>\n<p>or other document which purports or operates to create, declare, assign, limit<\/p>\n<p>or extinguish, whether in present or in future, any right, title or interest in<\/p>\n<p>money, movable or immovable property, fee shall be computed on the value<\/p>\n<p>of the subject matter of the suit and further lays down that such value shall<\/p>\n<p>be deemed to be if the whole decree or other document sought to be<\/p>\n<p>cancelled, the amount or value of the property for which the decree was<\/p>\n<p>passed or other document was executed. If a part of the decree or other<\/p>\n<p>document is sought to be cancelled, such part of the amount or value of the<\/p>\n<p>property constitute the basis for fixation of court fee. Sub-section (2) lays<\/p>\n<p>down that if the decree or other document is such that the liability under it<br \/>\n<span class=\"hidden_text\" id=\"span_12\">                                                                             1<\/span><\/p>\n<p>cannot be split up and the relief claimed relates only to a particular item of<\/p>\n<p>the property belonging to the plaintiff or the plaintiff&#8217;s share in such<\/p>\n<p>property, fee shall be computed on the value of such property, or share or on<\/p>\n<p>the amount of the decree, whichever is less. The deeming clause contained<\/p>\n<p>in the substantive part of <a href=\"\/doc\/254017\/\" id=\"a_71\">Section 40(1)<\/a> makes it clear that in a suit filed for<\/p>\n<p>cancellation of a document which creates any right, title or interest in<\/p>\n<p>immovable property, the court fees is required to be computed on the value<\/p>\n<p>of the property for which the document was executed. To put it differently,<\/p>\n<p>the value of the property for which the document was executed and not its<\/p>\n<p>market value is relevant for the purpose of court fee. If the expression<\/p>\n<p>`value of the subject matter of the suit&#8217; was not followed by the deeming<\/p>\n<p>clause, it could possibly be argued that the word `value&#8217; means the market<\/p>\n<p>value, but by employing the deeming clause, the legislature has made it clear<\/p>\n<p>that if the document is sought to be cancelled, the amount of court fee shall<\/p>\n<p>be computed on the value of the property for which the document was<\/p>\n<p>executed and not the market value of the property. The words &#8220;for which&#8221;<\/p>\n<p>appearing between the words &#8220;property&#8221; and &#8220;other documents&#8221; clearly<\/p>\n<p>indicate that the court fee is required to be paid on the value of the property<\/p>\n<p>mentioned in the document, which is subject matter of challenge.<\/p>\n<p id=\"p_54\">12.   If the legislature intended that fee should be payable on the market<\/p>\n<p>value of the subject matter of the suit filed for cancellation of a document<br \/>\n<span class=\"hidden_text\" id=\"span_13\">                                                                           1<\/span><\/p>\n<p>which purports or operates to create, declare, assign, limit or extinguish any<\/p>\n<p>present or future right, title and interest, then it would have, instead of<\/p>\n<p>incorporating the requirement of payment of fees on value of subject matter,<\/p>\n<p>specifically provided for payment of court fee on the market value of the<\/p>\n<p>subject matter of the suit as has been done in respect of other types of suits<\/p>\n<p>mentioned in <a href=\"\/doc\/228220\/\" id=\"a_72\">Sections 25<\/a>, <a href=\"\/doc\/357591\/\" id=\"a_73\">27<\/a>, <a href=\"\/doc\/1585615\/\" id=\"a_74\">29<\/a>, <a href=\"\/doc\/855953\/\" id=\"a_75\">30<\/a>, <a href=\"\/doc\/1314688\/\" id=\"a_76\">37<\/a>, <a href=\"\/doc\/1474155\/\" id=\"a_77\">38<\/a>, <a href=\"\/doc\/1671917\/\" id=\"a_78\">45<\/a> and <a href=\"\/doc\/1671917\/\" id=\"a_79\">48<\/a>. The legislature may<\/p>\n<p>have also, instead of using the expression &#8220;value of the property for which<\/p>\n<p>the document was executed&#8221;, used the expression &#8220;value of the property in<\/p>\n<p>respect of which the document was executed&#8221;. However, the fact of the<\/p>\n<p>matter is that in <a href=\"\/doc\/254017\/\" id=\"a_80\">Section 40(1)<\/a> the legislature has designedly not used the<\/p>\n<p>expression `market value of the property&#8217;.\n<\/p>\n<p id=\"p_55\">\n<p id=\"p_56\">13.   If the interpretation placed by the trial Court and the High Court on<\/p>\n<p>the expression &#8220;value of the property for which the document was executed&#8221;<\/p>\n<p>is accepted as correct then the word `value&#8217; used in <a href=\"\/doc\/254017\/\" id=\"a_81\">Section 40(1)<\/a> of the Act<\/p>\n<p>will have to be read as `market value&#8217; and we do not see any compelling<\/p>\n<p>reason to add the word `market&#8217; before the word `value&#8217; in <a href=\"\/doc\/254017\/\" id=\"a_82\">Section 40(1)<\/a> of<\/p>\n<p>the Act.\n<\/p>\n<p id=\"p_57\">\n<p id=\"p_58\">14.   We may now advert to the judgments relied upon by the learned<\/p>\n<p>counsel for the parties and some other judgments of different High Courts in<br \/>\n<span class=\"hidden_text\" id=\"span_14\">                                                                            1<\/span><\/p>\n<p>which <a href=\"\/doc\/254017\/\" id=\"a_83\">Section 40(1)<\/a> of the Act and similar provisions of other State<\/p>\n<p>legislations have been interpreted.\n<\/p>\n<p id=\"p_59\">\n<p id=\"p_60\">15.   In Venkata Narasimha Raju v. Chandrayya AIR 1927 Madras 825,<\/p>\n<p>the Division Bench of Madras High Court interpreted <a href=\"\/doc\/515526\/\" id=\"a_84\">Section 7<\/a> (v) (a) of the<\/p>\n<p><a href=\"\/doc\/138097064\/\" id=\"a_85\">Court-fees Act<\/a> as amended by Madras Act of 1922 and observed:<\/p>\n<blockquote id=\"blockquote_7\"><p>      &#8220;One point raised is whether the market value of the property<br \/>\n      should not be taken for the purpose of this valuation, or whether<br \/>\n      the statutory value should be adopted. We think the latter is the<br \/>\n      proper course as there is nothing in the Act to show that the<br \/>\n      market value is the value contemplated in S.7 (iv) (a). When<br \/>\n      there is in the Act itself a special rule as to valuing property in<br \/>\n      suits for Court-fees, we think it is proper to take that method of<br \/>\n      valuation in preference to any other method to get the value<br \/>\n      where there is no indication that any other method should be<br \/>\n      adopted.&#8221;\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_8\"><p>                                                     (emphasis supplied)<\/p>\n<\/blockquote>\n<blockquote id=\"blockquote_9\"><p>16.   <a href=\"\/doc\/288738\/\" id=\"a_86\">In Balireddi v. Khatipulal Sab<\/a> AIR 1935 Madras 863, the learned<\/p>\n<p>Single Judge of the High Court considered the question whether in a suit for<\/p>\n<p>setting aside mortgage deeds and sale deeds, the plaintiff is required to pay<\/p>\n<p>court-fees on the market value of the property and answered the same in<\/p>\n<p>affirmative. The learned Judge referred to two earlier judgments in Venkata<\/p>\n<p>Narasimha Raju v. Chandrayya (supra) and Venkatasiva Rao v.\n<\/p><\/blockquote>\n<p id=\"p_61\">Satyanarayanamurthi AIR 1932 Madras 605 but disagreed with the ratio<\/p>\n<p>of those judgments and held:\n<\/p>\n<blockquote id=\"blockquote_10\"><p>      &#8220;The amount of court-fee payable depends upon &#8220;the value of<br \/>\n      the subject-matter of the suit,&#8221; that is what the section says.\n<\/p><\/blockquote>\n<p><span class=\"hidden_text\" id=\"span_15\">                                                                             1<\/span><\/p>\n<blockquote id=\"blockquote_11\"><p>      Where a document securing money is sought to be cancelled,<br \/>\n      the section goes on to say, that the value of the subject-matter<br \/>\n      shall be deemed to be &#8220;the amount for which the document is<br \/>\n      executed.&#8221; In the case of a mortgage instrument therefore the<br \/>\n      court-fee has to be computed on the amount for which the<br \/>\n      instrument is executed, in other words, the principal amount<br \/>\n      secured by it. This is the plain effect of the words of the<br \/>\n      section, and I fail to see how the method of computation fixed<br \/>\n      in S.7(v) can possibly be applied. Now as regards the sale-<br \/>\n      deed, the question arises, is the value referred to in the section,<br \/>\n      the actual value of the property, that is to say, its market value<br \/>\n      or the artificial value prescribed by S.7 (v)? The last mentioned<br \/>\n      section deals with suits for possession and the legislature has<br \/>\n      expressly enacted that in such suits the value shall be<br \/>\n      determined in a particular manner. Cl. (iv-A) refers simply to<br \/>\n      &#8220;the value of the property,&#8221; which means &#8220;value&#8221; as generally<br \/>\n      understood, whereas Cl. (v) prescribes an artificial method of<br \/>\n      valuation. There is no reason to construe Cl. (iv-A) in the light<br \/>\n      of Cl. (v) which deals with a specific matter; indeed, when the<br \/>\n      legislature intends to prescribe an artificial method, it says so in<br \/>\n      express terms, as Cl. (iv-c) also shows. I am therefore of the<br \/>\n      opinion that in the case of the sale-deeds, the amount of court-<br \/>\n      fee payable must be computed on the market value of the<br \/>\n      properties with which they deal.&#8221;\n<\/p><\/blockquote>\n<p id=\"p_62\">17.   <a href=\"\/doc\/204726\/\" id=\"a_87\">In Kutumba Sastri v. Sundaramma<\/a> (supra), the Full Bench of<\/p>\n<p>Madras High Court interpreted paragraph (iv-A) of <a href=\"\/doc\/128272712\/\" id=\"a_88\">Section 7<\/a> of the Court-<\/p>\n<p>fees Act. The Full Bench referred to the earlier judgments in Venkata<\/p>\n<p>Narasimha     Raju    v.   Chandrayya       (supra),   Venkatasiva     Rao   v.<\/p>\n<p>Satyanarayanamurthi (supra), <a href=\"\/doc\/288738\/\" id=\"a_89\">Balireddi v. Khatipulal Sab<\/a> (supra) and<\/p>\n<p>approved the view expressed by the learned Single Judge in <a href=\"\/doc\/288738\/\" id=\"a_90\">Balireddi v.<\/p>\n<p>Khatipulal Sab<\/a> (supra) by making the following observations:<\/p>\n<blockquote id=\"blockquote_12\"><p>      &#8220;We consider that the view taken by Venkatasubba Rao J. in 59<br \/>\n      Mad 240 is preferable to that taken in 53 MLJ 267. Para (iv-A)<br \/>\n      deals with suits where it is necessary for the plaintiff to seek the<br \/>\n<span class=\"hidden_text\" id=\"span_16\">                                                                             1<\/span><\/p>\n<p>      cancellation of a decree or of a deed. Para (v) relates merely to<br \/>\n      suits for possession. In a suit for possession it is not always<br \/>\n      necessary to set aside a decree or a document. Where a suit is<br \/>\n      merely for possession the Act says how the value of the subject-<br \/>\n      matter shall be arrived at. When adding para (iv-A) to S.7 the<br \/>\n      Legislature did not say that in a suit falling within the new<br \/>\n      paragraph the valuation of the subject-matter should be arrived<br \/>\n      at in accordance with the method indicated in para (v). It said<br \/>\n      that a suit within para (iv-A) should be valued according to the<br \/>\n      value of the property, and the value of the property, unless there<br \/>\n      is an indication to the contrary, must mean to its market value.<br \/>\n      <a href=\"\/doc\/1596533\/\" id=\"a_91\">By the Amending Act<\/a> of 1922 para (iv-C) was also amended.<br \/>\n      Before the amendment, this paragraph provided that in a suit to<br \/>\n      obtain a declaratory decree or order where a consequential<br \/>\n      relief was prayed, the value should be according to the value of<br \/>\n      the relief sought by the plaintiff. <a href=\"\/doc\/1596533\/\" id=\"a_92\">The Amending Act<\/a> inserted<br \/>\n      the Proviso to the effect that in a suit coming under this<br \/>\n      paragraph in a case where the relief sought is with reference to<br \/>\n      immovable property the valuation shall not be less than half the<br \/>\n      value of the immovable property calculated in the manner<br \/>\n      provided for by paragraph (v). There the Legislature expressly<br \/>\n      provided that the method of calculation was to be in accordance<br \/>\n      with para (v) but in adding para (iv-A) no such direction was<br \/>\n      given. The court-fee is to be calculated on the amount or the<br \/>\n      value of the property and to give the wording of para (iv-A) its<br \/>\n      plain meaning the valuation must be the valuation based on the<br \/>\n      market value of the property at the date of the plaint.&#8221;\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_13\"><p>                                                    (emphasis supplied)<\/p>\n<\/blockquote>\n<blockquote id=\"blockquote_14\"><p>18.   In Navaraja v. Kaliappa Gounder (1967) 80 Madras Law Weekly<\/p>\n<p>19 (SN), the learned Single Judge noted that in the earlier suit, the properties<\/p>\n<p>were valued at Rs.4000\/-, referred to Section 40(1) of the Madras Court-fees<\/p>\n<p>and <a href=\"\/doc\/867444\/\" id=\"a_93\">Suits Valuation Act<\/a>, 1955, which is pari materia to the <a href=\"\/doc\/138097064\/\" id=\"a_94\">Section 40<\/a> of the<\/p>\n<p>Act and observed:\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_15\"><p>      &#8220;&#8230;&#8230;&#8230;&#8230;that as the decree itself specified the value of the<br \/>\n      property it will fall within the language of <a href=\"\/doc\/138097064\/\" id=\"a_95\">Section 40(1)<\/a>,<br \/>\n<span class=\"hidden_text\" id=\"span_17\">                                                                             <a href=\"\/doc\/168205941\/\" id=\"a_96\">1<\/a><\/span><\/p>\n<p>      namely, the amount or value of the property for which the<br \/>\n      decree was passed and ordered that the court-fee has to be paid<br \/>\n      calculated on the sum of Rs.4000, which is the value given in<br \/>\n      the decree, and not the market value of the properties on the<br \/>\n      date of the filing of the plaint.&#8221;\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_16\"><p>                                                (emphasis supplied)<\/p>\n<\/blockquote>\n<blockquote id=\"blockquote_17\"><p>19.   In Arunachalathammal v. Sudalaimuthu Pillai (1968) 83 Madras<\/p>\n<p>Law Weekly 789, another learned Single Judge examined the correctness of<\/p>\n<p>order passed by the Subordinate Judge, Tirunelveli, who had allowed the<\/p>\n<p>plaintiff to pay the court-fee for the cancellation of settlement deed on the<\/p>\n<p>value of the document i.e. Rs.3500\/-. While dismissing the revision filed by<\/p>\n<p>the defendants, the learned Judge referred to Section 40(1) of the Madras<\/p>\n<p>Act, distinguished the Full Bench judgment in Kutumba Sastri v.\n<\/p><\/blockquote>\n<p id=\"p_63\">Sundaramma (supra) and observed:\n<\/p>\n<blockquote id=\"blockquote_18\"><p>      &#8220;It will be seen that the section provides for suits (1) relating to<br \/>\n      cancellation of a decree for money, (2) cancellation of a decree<br \/>\n      for other property having a money value, and (3) cancellation of<br \/>\n      other document which purports or operates to create, declare,<br \/>\n      assign, limit or extinguish rights in moveable or immoveable<br \/>\n      property. The sub-section provides that fee shall be computed<br \/>\n      on the value of the subject matter of the suit. Then it proceeds<br \/>\n      to state how such value should be calculated. It provides that if<br \/>\n      the whole decree is sought to be cancelled, the amount or value<br \/>\n      of the property for which the decree was passed should be taken<br \/>\n      into account. In the case of other document which purports or<br \/>\n      operates to create, declare, assign, limit or extinguish rights in<br \/>\n      moveable or immoveable property, the value shall be deemed to<br \/>\n      be the value of the property. It is not clear as to whether the<br \/>\n      words &#8220;the amount or value of the property for which the<br \/>\n      decree was passed&#8221; are applicable to the cancellation of a<br \/>\n      document which creates or declares rights in moveable or<br \/>\n      immoveable property. In the case of suits for cancellation of<br \/>\n      either documents, apart from suits for cancellation of a decree<br \/>\n<span class=\"hidden_text\" id=\"span_18\">                                                                    2<\/span><\/p>\n<p>for money or other property, the above clause would be<br \/>\ncertainly applicable. This would mean that in the case of suits<br \/>\nfor cancellation of other documents, the value of the subject<br \/>\nmatter of the suit shall be deemed to be the amount for which<br \/>\nthe documents was executed. It was submitted on behalf of the<br \/>\ndefendants that even in the case of a suit for cancellation of<br \/>\nother documents, the value shall be deemed to be the value of<br \/>\nthe property. But this contention would ignore the effect of the<br \/>\nwords &#8220;value of the property for which the decree was passed&#8221;.\n<\/p><\/blockquote>\n<p id=\"p_64\">Even conceding that the value of the property should be taken<br \/>\ninto account in suits for cancellation of other documents, there<br \/>\nare two modes provided for to compute the value of the subject<br \/>\nmatter of the suit, (1) the value of the property and (2) the<br \/>\namount for which the document was executed.\n<\/p>\n<p id=\"p_65\">       Mr. Venugopalachari, learned counsel for the petitioners,<br \/>\nsubmitted that this view is opposed to the one taken in the<br \/>\ndecision in <a href=\"\/doc\/204726\/\" id=\"a_97\">Kutumba Sastri v. Sundaramma<\/a> where the Full<br \/>\nBench held that in a suit for cancellation of a deed of<br \/>\nconveyance the valuation must be the valuation based on the<br \/>\nmarket value of the property at the date of the plaint. The Full<br \/>\nBench was considering the question as to the Court fee payable<br \/>\nin a suit for cancellation of a deed of conveyance and for<br \/>\npossession of the property covered by the deed. The court held<br \/>\nthat the plaintiff should value his relief in accordance with the<br \/>\nprovisions of S.7(4)(A), and not according to S.7(V) of the old<br \/>\nCourt fees Act, 1870. After referring to the difference of<br \/>\nopinion between the various decisions, the Full Bench preferred<br \/>\nthe view taken in Bali Reddi v. Khatifulal Sab 59 Mad. 240,<br \/>\nfollowed in Venkatakrishniah v. All Sahib 48 L.W. 277. S.<br \/>\n7(4-A), of the old Act is slightly differently worded and it runs<br \/>\nas follows:-\n<\/p>\n<blockquote id=\"blockquote_19\"><p>      &#8220;In a suit for cancellation of a decree for money or other<br \/>\n      property having a money value, or other document<br \/>\n      securing money or other property having such value,<br \/>\n      according to the value of the subject matter of the suit,<br \/>\n      and such value shall be deemed to be&#8211;\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_20\"><p>      if the whole decree or other document is sought to be<br \/>\n      cancelled, the amount or the value of the property for<br \/>\n      which the decree was passed or the other document<br \/>\n      executed,<br \/>\n<span class=\"hidden_text\" id=\"span_19\">                                                                      2<\/span><\/p>\n<p>      if a part of the decree or other document is sought to be<br \/>\n      cancelled, such part of the amount or value of the<br \/>\n      property&#8221;.<\/p><\/blockquote>\n<p id=\"p_66\">\n<p id=\"p_67\">       It will be seen that the above section relates to a suit for<br \/>\ncancellation of a decree for money or other property having a<br \/>\nmoney value, or other document securing money or other<br \/>\nproperty having such value. There was some doubt whether the<br \/>\nthird part of the section relating to either document securing<br \/>\nmoney would include sales. In Balireddy v. Badul Sabar,<br \/>\nVenkatasubba Rao, J. referring to his earlier decision in<br \/>\n<a href=\"\/doc\/1574428\/\" id=\"a_98\">Doraiswami v. Thangavelu<\/a> held that sale deeds would come<br \/>\nwithin the meaning of this section. Whether this sub-section<br \/>\nincludes sale deeds or need not detain us, as S. 40(1) of Madras<br \/>\nAct XIV of 1955 is differently worded and there can be no<br \/>\ndoubt that it brings within its purview sale deeds as it relates to<br \/>\nother documents which purports or operates to create, declare,<br \/>\nassign, limit or extinguish any right in moveable or immoveable<br \/>\nproperty,<a href=\"\/doc\/128272712\/\" id=\"a_99\"> S. 7<\/a>(iv-A) of the old Act states that the value be<br \/>\ndeemed to be &#8220;if the whole decree or other document is sought<br \/>\nto be cancelled, the amount or the value of the property for<br \/>\nwhich the decree was passed or the other document executed&#8221;.<br \/>\nThe same words are used in<a href=\"\/doc\/138097064\/\" id=\"a_100\"> S. 40(1)<\/a> of the new Act. In<br \/>\nconstruing this sub-clause in<a href=\"\/doc\/128272712\/\" id=\"a_101\"> S. 7<\/a>(iv-A) of the old Act, the Full<br \/>\nBench pointed out in the decision cited above that the suit<br \/>\nwithin the meaning of the above section should be valued<br \/>\naccording to the value of the property, unless there is an<br \/>\nindication to the contrary, must mean its market value. It may<br \/>\nbe noted that the court was considering the value of the<br \/>\nproperty and does not appear to have taken note of the words<br \/>\n&#8220;the other document executed&#8221;.\n<\/p>\n<p id=\"p_68\">       As already pointed out,<a href=\"\/doc\/128272712\/\" id=\"a_102\"> S. 7<\/a>(iv-A) of the Old Act as well<br \/>\nas<a href=\"\/doc\/138097064\/\" id=\"a_103\"> S. 40(1)<\/a> of the present Act deal with suits for cancellation of<br \/>\na decree for money, cancellation of a decree for other property<br \/>\nhaving a money value and suit for cancellation other document.<br \/>\nIn the case of other documents, the clause &#8220;the amount or the<br \/>\nvalue of the property for which the decree was passed&#8221; cannot<br \/>\nbe held to be applicable and the only clause that can be properly<br \/>\napplied is only the value for which the document was executed.<br \/>\nIn the third category in<a href=\"\/doc\/138097064\/\" id=\"a_104\"> S. 40(1)<\/a>, to the words `other document,<br \/>\nthe words `which purports or operates to create, declare, assign,<br \/>\nlimit or extinguish&#8217; rights in moveable or immoveable property<br \/>\n<span class=\"hidden_text\" id=\"span_20\">                                                                           2<\/span><\/p>\n<p>      are included. Obviously in suits for cancellation of other<br \/>\n      documents referred to in<a href=\"\/doc\/138097064\/\" id=\"a_105\"> S. 40(1)<\/a> of the new Act the valuation<br \/>\n      should be the value of the other document executed. In<br \/>\n      Balireddy v. Abdul Satar the court refers to the section which<br \/>\n      says that the value of the subject matter shall be deemed to be<br \/>\n      the amount for which the document is executed. But it<br \/>\n      confined its discussion to the actual value of the property and<br \/>\n      held that it referred only to the market value. This decision also<br \/>\n      does not refer to the valuation of the document on the basis of<br \/>\n      the amount for which the document is executed.&#8221;\n<\/p>\n<p id=\"p_69\">                                                   (emphasis supplied)<\/p>\n<p id=\"p_70\">20.   In Appikunju Meerasayu v. Meeran Pillai (supra), the learned<\/p>\n<p>Single Judge of Kerala High Court relied on the judgment of Madras High<\/p>\n<p>Court in <a href=\"\/doc\/1908153\/\" id=\"a_106\">Narasamma v. Satyanarayana<\/a> AIR 1951 Madras 793 and<\/p>\n<p>observed:\n<\/p>\n<blockquote id=\"blockquote_21\"><p>      &#8220;As I have pointed out earlier, the emphasis in S.40(1) of the<br \/>\n      <a href=\"\/doc\/138097064\/\" id=\"a_107\">Court Fees Act<\/a> is regarding the subject matter of this suit and in<br \/>\n      respect of that subject matter which admittedly is immovable<br \/>\n      property it will have to be valued on the amount or valued as<br \/>\n      the property which was no doubt covered by the decree in O.S.<br \/>\n      21\/1125. But the value or amount must certainly be the market<br \/>\n      value as on the date of the filing of the suit.&#8221;<\/p><\/blockquote>\n<p id=\"p_71\">\n<p id=\"p_72\">      The same view was reiterated by another learned Single Judge of the<\/p>\n<p>Kerala High Court in Uma Antherjanam v. Govindaru Namboodiripad<\/p>\n<p>and others (supra).\n<\/p>\n<p id=\"p_73\">\n<p id=\"p_74\">21.   <a href=\"\/doc\/887206\/\" id=\"a_108\">In Sengoda Nadar v. Doraiswami Gounder and others<\/a> (supra), the<\/p>\n<p>learned Single Judge of Madras High Court referred to earlier judgments but<br \/>\n<span class=\"hidden_text\" id=\"span_21\">                                                                            2<\/span><\/p>\n<p>disagreed with the view expressed by the other learned Single Judges in<\/p>\n<p>Navaraja v. Kaliappa Gounder (supra) and Arunachalathammal v.<\/p>\n<p>Sudalaimuthu Pillai (supra) and followed the ratio of Full Bench judgment<\/p>\n<p>by recording the following observations:\n<\/p>\n<blockquote id=\"blockquote_22\"><p>       &#8220;With respect, I need hardly add that this is not the correct<br \/>\n       reading of the Full Bench decision. He has concluded by stating<br \/>\n       that obviously in suits for cancellation of &#8220;other documents&#8221;<br \/>\n       referred to in <a href=\"\/doc\/138097064\/\" id=\"a_109\">Section 40<\/a> (1) of the present Act, the valuation<br \/>\n       should be the value of the other document executed. I have<br \/>\n       already pointed out that in the documents just as in the case of<br \/>\n       decrees, the distinction is between those that dealt with money<br \/>\n       and those that dealt with property. The amount mentioned in the<br \/>\n       decree or the document is relevant only when the question is<br \/>\n       with regard to the decree for money or document securing<br \/>\n       money. But in the case of decrees or documents dealing with<br \/>\n       property of money value, the value of the subject-matter of the<br \/>\n       suit should be computed on the value of the property for which<br \/>\n       the decree was passed or the document was executed. I need not<br \/>\n       repeat that the valuation in respect of the property dealt with by<br \/>\n       the decree or document should be the market value and such a<br \/>\n       market value should be as on the date of suit.&#8221;\n<\/p><\/blockquote>\n<p id=\"p_75\">22.    <a href=\"\/doc\/1090415\/\" id=\"a_110\">In S. Krishna Nair and another v. N. Rugmoni Amma<\/a> (supra),<\/p>\n<p>another learned Single Judge followed the ratio of <a href=\"\/doc\/887206\/\" id=\"a_111\">Sengoda Nadar v.<\/p>\n<p>Doraiswami Gounder and others<\/a> (supra) and held that in a suit for<\/p>\n<p>cancellation of decree, the property is to be valued under Section 40(1) of<\/p>\n<p>the Tamil Nadu Court Fees and <a href=\"\/doc\/867444\/\" id=\"a_112\">Suits Valuation Act<\/a>, 1955 and the court fee<\/p>\n<p>is required to be paid on the market value of the property as on the date of<\/p>\n<p>the plaint.\n<\/p>\n<p><span class=\"hidden_text\" id=\"span_22\">                                                                           2<\/span><\/p>\n<p id=\"p_76\">\n<p id=\"p_77\">23.   In Krishnan Damodaran v. Padmanabhan Parvathy (supra), the<\/p>\n<p>Division Bench of Kerala High Court reiterated the views expressed in<\/p>\n<p><a href=\"\/doc\/204726\/\" id=\"a_113\">Kutumba Sastri v. Sundaramma<\/a> (supra), Appikunju Meerasayu v.<\/p>\n<p>Meeran Pillai (supra) and <a href=\"\/doc\/887206\/\" id=\"a_114\">Sengoda Nadar v. Doraiswami Gounder and<\/p>\n<p>others<\/a> (supra) and held that court fee is payable on the market value of the<\/p>\n<p>property covered by the document and not on the basis of the valuation<\/p>\n<p>given in the document.\n<\/p>\n<p id=\"p_78\">\n<p id=\"p_79\">24.   <a href=\"\/doc\/4155\/\" id=\"a_115\">In P.K. Vasudeva Rao v. Hari Menon<\/a> (supra), the Division Bench of<\/p>\n<p>the Kerala High Court held as under:\n<\/p>\n<blockquote id=\"blockquote_23\"><p>      &#8220;True, as contended for on behalf of the plaintiff-revision<br \/>\n      petitioner, S.40 nowhere uses the expression `market value&#8217;.<br \/>\n      But it is clear therefrom that the legislative intent is to levy<br \/>\n      court-fee on the just equivalent in money of the `other property&#8217;<br \/>\n      comprised in the decree or portion thereof sought to be set<br \/>\n      aside; or dealt with in the `other document&#8217; or part thereof<br \/>\n      sought to be cancelled. The section opens by saying that `in a<br \/>\n      suit for cancellation of a decree for money or other property<br \/>\n      having a money value&#8217; (emphasis supplied) `fee shall be<br \/>\n      computed on the value of the subject matter of the suit&#8217;.<br \/>\n      `Money value&#8217; of a property is its worth in terms of the<br \/>\n      currency of the land or in other words, is such money-<br \/>\n      equivalent thereof in open market; and not any amount less than<br \/>\n      that as where it is overvalued at a fancy-price. It cannot be that<br \/>\n      when, what is sought to be cancelled is a decree or part thereof<br \/>\n      for `other property&#8217;, i.e. property other than money, the value of<br \/>\n      such property for computation of court-fees is its `money-<br \/>\n      value&#8217;, and when, what is sought to be cancelled is a document<br \/>\n      or part thereof in respect of `other property&#8217;, the value of such<br \/>\n      property for such computation is not its `money-value&#8217;. Value<br \/>\n      of the subject matter, namely, value of the `other property&#8217; in<br \/>\n      both cases is its money-value.\n<\/p><\/blockquote>\n<p><span class=\"hidden_text\" id=\"span_23\">                                                                       2<\/span><\/p>\n<p id=\"p_80\">The object of the second and the third paras in sub-section (1)<br \/>\nof S.40 is not to introduce any fiction but to provide for two<br \/>\nsituations, namely, (i) where the decree or the document as a<br \/>\nwhole is sought to be cancelled and (ii) where only part thereof<br \/>\nis sought to be cancelled. In the first situation, the value of the<br \/>\nsubject matter is the amount for which the decree was passed or<br \/>\nthe document was executed; or the value of the property<br \/>\nconcerning which the decree was passed or the document was<br \/>\nexecuted. In the second class of cases, the value of the subject<br \/>\nmatter of the suit is such part of the amount for which the<br \/>\ndecree was passed or the document was executed, in respect of<br \/>\nwhich part, the decree or the document is sought to be<br \/>\ncancelled; or the value of such part of the property concerning<br \/>\nwhich the decree was passed or the document was executed, in<br \/>\nrespect of which part, the decree or the document is sought to<br \/>\nbe cancelled.\n<\/p>\n<p id=\"p_81\"><a href=\"\/doc\/138097064\/\" id=\"a_116\">Section 40(1)<\/a> has to be read as a whole. So read: (A) when the<br \/>\nsuit is for cancellation of a decree or other document for<br \/>\nmoney, then the value of the subject-matter of the suit will be:-\n<\/p>\n<p id=\"p_82\">(i) the whole amount for which the decree was passed or the<br \/>\ndocument was executed, if what is sought to be cancelled is the<br \/>\nwhole of the decree or the whole of the document; and (ii) such<br \/>\npart of the amount for which the decree was passed or the<br \/>\ndocument was executed, if only part of the decree or part of the<br \/>\ndocument is sought to be cancelled; (B) when the suit is for<br \/>\ncancellation of a decree or other document for a property<br \/>\nhaving money-value, then, the value of the subject-matter of the<br \/>\nsuit will be:- (i) if the whole of the decree or the document is<br \/>\nsought to be cancelled &#8211; the value of the property covered by<br \/>\nthe decree or the document; and (ii) if only part of the decree or<br \/>\nof the document is to be cancelled; value of such part of the<br \/>\nproperty in respect of which the decree was passed or the<br \/>\ndocument was executed and to which extent such decree or<br \/>\nsuch document is to be cancelled. We are not impressed with<br \/>\nthe submission that there is a distinction between the<br \/>\nexpressions `the value of the property for which the decree was<br \/>\npassed or other document was executed&#8217; and `the value of the<br \/>\nproperty in respect of which the decree was passed or other<br \/>\ndocument was executed&#8217; for the purpose of computation of<br \/>\ncourt-fees. The scheme of S.40 is to make court-fees leviable<br \/>\non the sum of money or portion thereof, when what the plaintiff<br \/>\nseeks is to get rid of his obligation and liability therefor or part<br \/>\n<span class=\"hidden_text\" id=\"span_24\">                                                                             2<\/span><\/p>\n<p>      thereof under a decree passed or a document executed by<br \/>\n      cancellation thereof, and on the money-equivalent of the<br \/>\n      property or portion thereof, when what he seeks to get rid of is<br \/>\n      his obligation and liability in relation to that property or portion<br \/>\n      thereof under a decree passed or a document executed in respect<br \/>\n      of it by cancellation thereof.&#8221;\n<\/p>\n<p id=\"p_83\">\n<p id=\"p_84\">25.   In R. Rangiah v. Thimma Setty (1963) 1 Mysore Law Journal 67,<\/p>\n<p>the Division Bench of Mysore High Court interpreted Section 4(iv)(A) of<\/p>\n<p>Mysore Court Fees Act, which is substantially similar to <a href=\"\/doc\/138097064\/\" id=\"a_117\">Section 40<\/a> of the<\/p>\n<p>Act and held that:\n<\/p>\n<blockquote id=\"blockquote_24\"><p>      &#8220;Now, one thing which is very clear from the paragraphs 1 &amp; 2<br \/>\n      of S.4 (iv) A is that in a suit brought for the cancellation of a<br \/>\n      document executed for the purpose of securing property, the<br \/>\n      Court Fee payable is on the value of such property. Although<br \/>\n      those paragraphs do not refer in terms to the market value of the<br \/>\n      property, as some of the other parts of the Act do, I have no<br \/>\n      doubt in my mind that the word `value&#8217; occurring in those<br \/>\n      paragraphs has reference to no other value than the market<br \/>\n      value. The word `value&#8217; when it occurs in an enactment like<br \/>\n      the <a href=\"\/doc\/138097064\/\" id=\"a_118\">Court Fees Act<\/a>, has to my mind, particularly known and<br \/>\n      definite meaning. That word has reference to the price which<br \/>\n      the property will fetch when exposed to the test of competition.\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_25\"><p>             Mr. Gopivallabha Iyengar had to admit that the word<br \/>\n      `value&#8217; occurring in the first paragraph would have to be<br \/>\n      understood as the market value if paragraphs 2 and 3 did not<br \/>\n      exist in S.4(iv) A. If, therefore, the word `value&#8217; occurring in<br \/>\n      the first paragraph means market value, I see nothing in<br \/>\n      paragraphs 2 and 3 on which Mr. Gopivallabha Iyengar<br \/>\n      strongly relied which can persuade me to take the view that the<br \/>\n      word `value&#8217; occurring in the first paragraph which, as<br \/>\n      ordinarily understood, is the market value, should be<br \/>\n      understood differently.<\/p><\/blockquote>\n<p id=\"p_85\">\n<p id=\"p_86\">            Paragraph 2 does no more than to merely provide that, if<br \/>\n      a document is sought to be cancelled in its entirety, the Court<br \/>\n      Fee is payable on the value of the whole of the property in<br \/>\n<span class=\"hidden_text\" id=\"span_25\">                                                                      2<\/span><\/p>\n<p>respect of which the document is executed. Likewise paragraph<br \/>\n3 merely provides that where the cancellation sought is a partial<br \/>\ncancellation, Court Fee is payable only on the value of the<br \/>\nproperty in respect of which cancellation is sought. It is for that<br \/>\npurpose that the words &#8220;value shall be deemed to be&#8221; are used<br \/>\nby the Legislature in the first paragraph of the clause and not<br \/>\nfor the purpose of assigning to the word `value&#8217; occurring in the<br \/>\nfirst paragraph a meaning different from that which has to be<br \/>\nordinarily given to it.\n<\/p>\n<p id=\"p_87\">       It is no doubt true that the second paragraph of S.4(iv) A<br \/>\ndirects that the Court Fee payable in a suit brought for the<br \/>\ncancellation of a document is the Court Fee on the value of the<br \/>\nproperty `for which&#8217; the document was executed. Ordinarily<br \/>\nthe expression `for which&#8217; occurring in that paragraph might<br \/>\nhave justified the interpretation that the amount on which the<br \/>\nCurt Fee has to be paid is the amount specified in the document.<br \/>\nBut, that, that would not be correct way of understanding those<br \/>\nwords occurring in paragraph 2 of that clause is clear from the<br \/>\nfact that S.4(iv) A does not provide merely for cancellation of a<br \/>\ndocument executed for a specified consideration such as a sale<br \/>\ndeed, but also provides for the payment of Court Fee even in<br \/>\nsuits brought for cancellation of other documents such as a deed<br \/>\nof settlement, a gift deed or a trust deed. In the latter category<br \/>\nof cases it would not be appropriate to regard those documents<br \/>\nas executed for a consideration or a specified amount and those<br \/>\ncases would not be cases in which there would be any value<br \/>\n`for which the document is executed.\n<\/p>\n<p id=\"p_88\">       The second paragraph which requires the payment of<br \/>\nCourt Fee on the value of the property `for which&#8217; the<br \/>\ndocument was executed, does not, when properly understood,<br \/>\ndirect the payment of such Court Fee on the value for which the<br \/>\ndocument was executed, but on the value of the property for<br \/>\nwhich it was executed. In other words, the words `for which&#8217;<br \/>\noccurring in that paragraph do not refer to the value but to the<br \/>\nproperty to which the document relates. The words `for which<br \/>\noccurring in that paragraph, in my opinion, mean `for securing<br \/>\nwhich&#8217;, so that what that paragraph directs is the payment of<br \/>\nCourt Fee on the value of the property for securing which the<br \/>\ndocument is executed.\n<\/p>\n<p><span class=\"hidden_text\" id=\"span_26\">                                                                               2<\/span><\/p>\n<p id=\"p_89\">\n<p id=\"p_90\">              That, that is the correct interpretation is indicated by the<br \/>\n        word `securing&#8217; occurring in the first paragraph of the clause in<br \/>\n        the context of a document of which cancellation is sought.<\/p>\n<p id=\"p_91\">               It therefore follows that what is relevant for the purpose<br \/>\n        of S.4(iv) A is not the value of the property specified in the<br \/>\n        document but its real and actual value when the suit is brought.<br \/>\n        It is on that value that the Court fee has to be paid if the suit is<br \/>\n        for the cancellation of a document recording a transaction<br \/>\n        involving such property.&#8221;\n<\/p>\n<p id=\"p_92\">\n<p id=\"p_93\">26.     <a href=\"\/doc\/332195\/\" id=\"a_119\">In Pachayammal v. Dwaraswamy Pillai<\/a> (supra), another Division<\/p>\n<p>Bench of Kerala High Court interpreted <a href=\"\/doc\/128272712\/\" id=\"a_120\">Sections 7<\/a> and <a href=\"\/doc\/138097064\/\" id=\"a_121\">40<\/a> of the Act and<\/p>\n<p>held:\n<\/p>\n<p id=\"p_94\">\n<blockquote id=\"blockquote_26\"><p>        &#8220;<a href=\"\/doc\/128272712\/\" id=\"a_122\">Section 7<\/a> of the Act though deals with determination of<br \/>\n        market value, it starts with a saving clause. A reading of<br \/>\n        <a href=\"\/doc\/128272712\/\" id=\"a_123\">Section 7(1)<\/a> makes it clear that if there is a specific provision in<br \/>\n        the Act for valuing the suit, the Sub-sections (2) to (4) of<br \/>\n        <a href=\"\/doc\/128272712\/\" id=\"a_124\">Section 7<\/a> can have no application. According to the counsel for<br \/>\n        the petitioners, <a href=\"\/doc\/138097064\/\" id=\"a_125\">Section 40<\/a> is an independent provision for<br \/>\n        valuation of suits for cancellation of decrees and documents and<br \/>\n        in view of <a href=\"\/doc\/128272712\/\" id=\"a_126\">Section 7(1)<\/a>, market value of the property is not a<br \/>\n        criteria at all. Whenever market value of the property is to be<br \/>\n        taken into account, it is specifically stated in the statute.<br \/>\n        <a href=\"\/doc\/74279438\/\" id=\"a_127\">Sections 24<\/a>, <a href=\"\/doc\/80353433\/\" id=\"a_128\">25<\/a>, <a href=\"\/doc\/85359967\/\" id=\"a_129\">27<\/a>, <a href=\"\/doc\/111812791\/\" id=\"a_130\">29<\/a>, <a href=\"\/doc\/18634771\/\" id=\"a_131\">30<\/a>, <a href=\"\/doc\/138097064\/\" id=\"a_132\">37<\/a>, <a href=\"\/doc\/138097064\/\" id=\"a_133\">38<\/a>, <a href=\"\/doc\/138097064\/\" id=\"a_134\">45<\/a> &amp; <a href=\"\/doc\/138097064\/\" id=\"a_135\">48<\/a> etc, specifically<br \/>\n        provide that market value of the property involved in the suit is<br \/>\n        to be taken as basis for valuation. But, the word &#8216;market&#8217; is<br \/>\n        conspicuously absent in <a href=\"\/doc\/138097064\/\" id=\"a_136\">Section 40<\/a>. When the section is plain<br \/>\n        and unambiguous, courts should not venture to add words to it<br \/>\n        to give an entirely different scope to the said provisions never<br \/>\n        intended by the legislature. Therefore, it was argued that<br \/>\n        concept of &#8220;market value of the property&#8217; cannot be brought into<br \/>\n        <a href=\"\/doc\/138097064\/\" id=\"a_137\">Section 40<\/a>. Learned Counsel invited our attention to the<br \/>\n        decisions of the Apex Court in <a href=\"\/doc\/1630460\/\" id=\"a_138\">Gurudevdatta VKSSS Maryadit<br \/>\n        and Ors. v. State of Maharashtra and Ors<\/a> (2001) 4 SCC 534<br \/>\n        (Paragraph 26) and Padma Sundara Rao (Dead) and Ors. v.<br \/>\n        State of T.N. and Ors. (2002) 3 SCC 533 (Paragraphs 14 and\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_27\"><p>        15). It is true that when the words of a statute are clear, plain or<br \/>\n<span class=\"hidden_text\" id=\"span_27\">                                                                           2<\/span><\/p>\n<p>      unambiguous, i.e. they are reasonably susceptible to only one<br \/>\n      meaning, the courts are bound to give effect to that meaning<br \/>\n      irrespective of consequences. The rule stated by TINDAL, C.J.<br \/>\n      in Sussex Peerage case, (1844) 11 Cl &amp; F 85, p. 143) is in the<br \/>\n      following form: &#8220;If the words of the statute are in themselves<br \/>\n      precise and unambiguous, then no more can be necessary than<br \/>\n      to expound those words in their natural and ordinary sense. The<br \/>\n      words themselves do alone in such cases best declare the intent<br \/>\n      of the lawgiver&#8221;.\n<\/p><\/blockquote>\n<blockquote id=\"blockquote_28\"><p>      Here, the question is what is clearly stated in <a href=\"\/doc\/138097064\/\" id=\"a_139\">Section 40<\/a> as the<br \/>\n      criteria for valuation of suit filed for cancellation of a<br \/>\n      document. <a href=\"\/doc\/138097064\/\" id=\"a_140\">Section 40<\/a> of the Act mandates that if a suit is filed<br \/>\n      for cancelling a document which creates, assigns or<br \/>\n      extinguishes the right, title or interest in an immovable<br \/>\n      property, if the whole document is to be cancelled, the value of<br \/>\n      the property for which the document was executed and if plaint<br \/>\n      is only to cancel part of the document, such part of the value of<br \/>\n      property for which document was executed is the basis for suit<br \/>\n      valuation. Therefore, value depends on the value of property for<br \/>\n      which document was executed and sought to be cancelled and<br \/>\n      not the value mentioned in the document. Here, a gift deed is<br \/>\n      sought to be cancelled. Then on a plain meaning of <a href=\"\/doc\/138097064\/\" id=\"a_141\">Section 40<\/a>,<br \/>\n      suit should be valued at the value of the property for which gift<br \/>\n      deed was executed and not the value of the document or value<br \/>\n      mentioned in the document. If a gift deed is executed out of<br \/>\n      love and affection, which is a valid consideration, suit valuation<br \/>\n      depends upon not on estimation of value of love and affection<br \/>\n      or null value, but, on the value of the property covered by the<br \/>\n      gift deed. Then the question is what is the value of property at<br \/>\n      the time of filing the suit. In legal terms value of property<br \/>\n      means market value of property and when valuation is<br \/>\n      considered with regard to suit valuation, it can only be market<br \/>\n      value of property at the time of filing the suit and nothing else.<br \/>\n      <a href=\"\/doc\/128272712\/\" id=\"a_142\">Section 7(1)<\/a> clearly states that except otherwise provided, court<br \/>\n      fee payable under the Act depends on the market value<br \/>\n      determined on the date of presentation of plaint. No contrary<br \/>\n      indication is made in <a href=\"\/doc\/138097064\/\" id=\"a_143\">Section 40<\/a>.&#8221;\n<\/p><\/blockquote>\n<p id=\"p_95\">27.   <a href=\"\/doc\/1234610\/\" id=\"a_144\">In Smt. Narbada v. Smt. Aashi<\/a> AIR 1987 Rajasthan 162, the learned<\/p>\n<p>Single Judge of Rajasthan High Court followed the ratio of the Division<br \/>\n<span class=\"hidden_text\" id=\"span_28\">                                                                             3<\/span><\/p>\n<p>Bench of Kerala High Court in <a href=\"\/doc\/4155\/\" id=\"a_145\">P.K. Vasudeva Rao v. Hari Menon<\/a> (supra)<\/p>\n<p>and held that in a suit for cancellation of decree, the court fee is required to<\/p>\n<p>be paid on the market value of the property.\n<\/p>\n<p id=\"p_96\">\n<p id=\"p_97\">28.   <a href=\"\/doc\/525290\/\" id=\"a_146\">In Andalammal v. B. Kanniah<\/a> (1971) II Madras Law Journal 205,<\/p>\n<p>the learned Single Judge considered the question relating to court fee in the<\/p>\n<p>context of a suit filed for cancellation of a settlement deed on the ground that<\/p>\n<p>the same had been procured by fraudulent misrepresentation.              In the<\/p>\n<p>settlement deed, the property was valued at Rs.10,000\/-. The learned trial<\/p>\n<p>Court held that the suit should be valued on the market value of the property<\/p>\n<p>as on the date of plaint and not on the basis of the value of suit in the<\/p>\n<p>settlement deed and accordingly directed the plaintiff to pay deficit court fee<\/p>\n<p>after furnishing the market value of the property. The learned Single Judge<\/p>\n<p>referred to Section 40 of the Madras Act and held:<\/p>\n<blockquote id=\"blockquote_29\"><p>      &#8220;It is important to mark the words &#8220;the amount or value of the<br \/>\n      property for which the document was executed&#8221;. If the<br \/>\n      Legislature had said &#8220;the amount or value of the property in<br \/>\n      respect of which the document was executed&#8221;, it would be<br \/>\n      reasonable to hold that the basis shall be the market value of the<br \/>\n      property, regardless of what the document says it is. But as the<br \/>\n      section refers to &#8220;the amount or value of the property for which<br \/>\n      the document was executed&#8221;, the legislative intent is clear that<br \/>\n      the basis for the purpose of valuation shall be the amount or<br \/>\n      value mentioned in the document itself. Evidently, the<br \/>\n      intention of the Legislature is that when a person seeks to<br \/>\n      cancel a document executed by himself, he shall pay Court-fee<br \/>\n      upon the value which he has chosen to put upon the property in<br \/>\n      the document he seeks to cancel. The word &#8220;value&#8221; ordinarily<br \/>\n      connotes the price set on a thing, and when the Legislature<br \/>\n<span class=\"hidden_text\" id=\"span_29\">                                                                           3<\/span><\/p>\n<p>      directs that the value of the subject-matter shall be deemed to<br \/>\n      be the amount or value of the property for which the document<br \/>\n      was executed, I see no warrant for ignoring the plain language<br \/>\n      or the section and holding that the value shall be the market<br \/>\n      value of the property. In fact, the Legislature has expressly<br \/>\n      used the words &#8220;market value&#8221; in twelve other sections of the<br \/>\n      Act in contra distinction to the word &#8220;value&#8221; used in <a href=\"\/doc\/138097064\/\" id=\"a_147\">section<br \/>\n      40(1)<\/a> of the Act. I, therefore, hold that the Court-fee paid by<br \/>\n      the petitioner upon the basis of the value of the property as<br \/>\n      given in the settlement deed is correct.&#8221;\n<\/p><\/blockquote>\n<p id=\"p_98\">29.   <a href=\"\/doc\/665179\/\" id=\"a_148\">In Allam Venkateswara Reddy v. Golla Venkatanarayana<\/a> AIR<\/p>\n<p>1975 A.P. 122, a learned Single Judge of Andhra Pradesh High Court<\/p>\n<p>construed Section 37 of the Andhra Pradesh Court-fees and <a href=\"\/doc\/867444\/\" id=\"a_149\">Suits Valuation<\/p>\n<p>Act<\/a>, which is pari materia to <a href=\"\/doc\/138097064\/\" id=\"a_150\">Section 40<\/a> of the Act, and held:<\/p>\n<blockquote id=\"blockquote_30\"><p>      &#8220;<a href=\"\/doc\/138097064\/\" id=\"a_151\">Section 37(1)<\/a> contemplated two kinds of suits, viz. suits for<br \/>\n      cancellation of decrees, whether they are for money or for<br \/>\n      property having a money value and suits for cancellation of<br \/>\n      documents creating or extinguishing rights whether in money,<br \/>\n      movable or immovable property. It is stated therein that for the<br \/>\n      purpose of payment of court-fee in the suit the fee shall be<br \/>\n      computed on the basis of the value of the subject-matter of the<br \/>\n      suit and that such value shall be deemed to be the one indicated<br \/>\n      in clause (a) of <a href=\"\/doc\/138097064\/\" id=\"a_152\">Section 37(1)<\/a> wherein it is mentioned that if the<br \/>\n      whole decree or other document is sought to be cancelled, the<br \/>\n      amount or value of the property for which the decree was<br \/>\n      passed or other document was executed shall be deemed to be<br \/>\n      the value for computation of court-fee . From this it is very<br \/>\n      clear that for cancellation of a document regarding a property<br \/>\n      the value shall be deemed to be the amount for which the<br \/>\n      document regarding a property the value shall be deemed to be<br \/>\n      the amount for which the document sought to be cancelled was<br \/>\n      executed with regard to the property. In the present case, the<br \/>\n      two sale deeds in question were executed for a sum of<br \/>\n      Rs.18,000\/-. Therefore, the court-fee has to be paid on that<br \/>\n      amount and not on the present market value of the properties<br \/>\n      which are the subject-matter of the two sale deeds. A reading<br \/>\n      of <a href=\"\/doc\/138097064\/\" id=\"a_153\">Section 37<\/a> does not show that the court-fee has to be<br \/>\n<span class=\"hidden_text\" id=\"span_30\">                                                                           3<\/span><\/p>\n<p>      computed on the basis of the present market value of the<br \/>\n      document sought to be cancelled.&#8221;\n<\/p><\/blockquote>\n<p id=\"p_99\">30.   In view of our analysis of the relevant statutory provisions, it must be<\/p>\n<p>held that the judgments of the Division Bench of Madras High Court and of<\/p>\n<p>the learned Single Judges in Venkata Narasimha Raju v. Chandrayya<\/p>\n<p>(supra), Navaraja v. Kaliappa Gounder (supra), Arunachalathammal v.<\/p>\n<p>Sudalaimuthu Pillai (supra) and <a href=\"\/doc\/525290\/\" id=\"a_154\">Andalammal v. B. Kanniah<\/a> (supra) as<\/p>\n<p>also the judgment of the learned Single Judge of Andhra Pradesh High Court<\/p>\n<p>in <a href=\"\/doc\/665179\/\" id=\"a_155\">Allam Venkateswara Reddy v. Golla Venkatanarayana<\/a> (supra) lay<\/p>\n<p>down correct law. In the first of these cases, the Division Bench of Madras<\/p>\n<p>High Court rightly observed that when there is a special rule in the Act for<\/p>\n<p>valuing the property for the purpose of court fee, that method of valuation<\/p>\n<p>must be adopted in preference to any other method and, as mentioned above,<\/p>\n<p><a href=\"\/doc\/138097064\/\" id=\"a_156\">Section 40<\/a> of the Act certainly contains a special rule for valuing the<\/p>\n<p>property for the purpose of court fee and we do not see any reason why the<\/p>\n<p>expression `value of the property&#8217; used in <a href=\"\/doc\/138097064\/\" id=\"a_157\">Section 40(1)<\/a> should be<\/p>\n<p>substituted with the expression `market value of the property&#8217;.<\/p>\n<p id=\"p_100\">31.   The judgment of the learned Single Judge of Madras High Court in<\/p>\n<p><a href=\"\/doc\/288738\/\" id=\"a_158\">Balireddi v. Khatipulal Sab<\/a> (supra), which was approved by the Full<\/p>\n<p>Bench of that Court in <a href=\"\/doc\/204726\/\" id=\"a_159\">Kutumba Sastri v. Sundaramma<\/a> (supra) turned<\/p>\n<p>primarily on the interpretation of <a href=\"\/doc\/128272712\/\" id=\"a_160\">Section 7<\/a>(iv-<a href=\"\/doc\/138097064\/\" id=\"a_161\">A) of the Court Fee Act<\/a> as<br \/>\n<span class=\"hidden_text\" id=\"span_31\">                                                                          3<\/span><\/p>\n<p>amended by Madras Act which refers to the value of the property simpliciter<\/p>\n<p>and the Court interpreted the same as market value. Neither the learned<\/p>\n<p>Single Judge nor the Full Bench were called upon to interpret a provision<\/p>\n<p>like <a href=\"\/doc\/138097064\/\" id=\"a_162\">Section 40<\/a> of the Act. Therefore, the ratio of those judgments cannot be<\/p>\n<p>relied upon for the purpose of interpreting <a href=\"\/doc\/138097064\/\" id=\"a_163\">Section 40<\/a> of the Act.        In<\/p>\n<p>Arunachalathammal v. Sudalaimuthu Pillai (supra), the learned Single<\/p>\n<p>Judge rightly distinguished the judgment of the Full Bench by making a<\/p>\n<p>pointed reference to the language employed in Section 40(1) of the Madras<\/p>\n<p>Act No.XIV of 1955, which is identical to <a href=\"\/doc\/138097064\/\" id=\"a_164\">Section 40<\/a> of the Act.          <a href=\"\/doc\/887206\/\" id=\"a_165\">In<\/p>\n<p>Sengoda Nadar v. Doraiswami Gounder and others<\/a> (supra) and <a href=\"\/doc\/1090415\/\" id=\"a_166\">S.<\/p>\n<p>Krishna Nair and another v. N. Rugmoni Amma<\/a> (supra), the other<\/p>\n<p>learned Single Judges did not correctly appreciate the ratio of the judgment<\/p>\n<p>of the coordinate Bench in Arunachalathammal v. Sudalaimuthu Pillai<\/p>\n<p>(supra) and distinguished the same without assigning cogent reasons. We<\/p>\n<p>may also observe that if the learned Single Judges felt that the view<\/p>\n<p>expressed by the co-ordinate Bench was not correct, they ought to have<\/p>\n<p>referred the matter to the larger Bench. The judgments of the Division<\/p>\n<p>Benches of Kerala High Court in Krishnan Damodaran v. Padmanabhan<\/p>\n<p>Parvathy (supra), <a href=\"\/doc\/4155\/\" id=\"a_167\">P.K. Vasudeva Rao v. Hari Menon<\/a> (supra) and<\/p>\n<p><a href=\"\/doc\/332195\/\" id=\"a_168\">Pachayammal v. Dwaraswamy Pillai<\/a> (supra) and of the learned Single<\/p>\n<p>Judges in Appikunju Meerasayu v. Meeran Pillai (supra) and Uma<\/p>\n<p>Antherjanam v. Govindaru Namboodiripad and others (supra) also do<br \/>\n<span class=\"hidden_text\" id=\"span_32\">                                                                                  3<\/span><\/p>\n<p>not lay down correct law because the High Court did not appreciate that the<\/p>\n<p>legislature has designedly used different language in <a href=\"\/doc\/138097064\/\" id=\"a_169\">Section 40<\/a> of the Act<\/p>\n<p>and the term `market value&#8217; has not been used therein. The same is true of<\/p>\n<p>the judgments of the learned Single Judges of Mysore and Rajasthan High<\/p>\n<p>Courts noticed hereinabove.\n<\/p>\n<p id=\"p_101\">\n<p id=\"p_102\">32.   In the result, the appeal is allowed.     The impugned order of the<\/p>\n<p>learned Single Judge of Kerala High Court as also the order passed by the<\/p>\n<p>trial Court directing the appellant to pay court fee on the market value of the<\/p>\n<p>property, in respect of which the sale deed was executed by respondent No.1<\/p>\n<p>in favour of respondent No.2, are set aside. The trial Court shall now<\/p>\n<p>proceed with the case and decide the same in accordance with law. The<\/p>\n<p>parties are left to bear their own costs.\n<\/p>\n<p id=\"p_103\">\n<p id=\"p_104\">                                                  &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;J.\n<\/p>\n<p id=\"p_105\">                                                 [G.S. Singhvi]<\/p>\n<p>                                                 &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;J.\n<\/p>\n<p id=\"p_106\">                                                 [Asok Kumar Ganguly]<\/p>\n<p>New Delhi<br \/>\nMay 07, 2010.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Satheedevi vs Prasanna &amp; Anr on 7 May, 2010 Author: G Singhvi Bench: G.S. Singhvi, Asok Kumar Ganguly REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.4347 OF 2010 (Arising out of S.L.P. (C) No.3597 of 2009) Satheedevi &#8230;&#8230;.Appellant Versus Prasanna and another &#8230;&#8230;.Respondents JUDGMENT G.S. Singhvi, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-261993","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Satheedevi vs Prasanna &amp; Anr on 7 May, 2010 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/satheedevi-vs-prasanna-anr-on-7-may-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Satheedevi vs Prasanna &amp; 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