Valuation of suit of Cancellation for the purpose of Court Fees Act

In a suit for cancellation of sale deed which was executed for a specified amount, the Court Fee has to be paid on that amount and not on the basis of the market value of the property at the presentation of the plaint.

In a suit for cancellation of sale deed which was executed for a specified amount, the Court Fee has to be paid on that amount and not on the basis of the market value of the property at the presentation of the plaint. Section 37 of the Court Fees Act which deals with the suits for cancellation of decrees etc. if interpreted in the light of the expression “save as otherwise provided” used in Section 7 of the Court Fees Act, it becomes clear that the rule enshrined therein is a clear departure from the one contained in Section 7 read with Sections 24, 26, 28, 29, 34, 35, 42 and 45, which provide for payment of Court Fee on the market value of the property. Section 37 is stand alone provision, wherein the legislature has designedly not used the expression “market value of the property”. Section 37 of the Court Fees Act contains a special rule for valuing the property for the purpose of Court Fee and jurisdiction and thus the expression “value of the property” used in Section 37 cannot be substituted with the expression “market value of the property”. [Polamrasetti Manikyam & Anr. vs. Teegala Venkata Ramayya & Anr.] (SC, 19.02.2014)