{"id":347200,"date":"2025-05-06T10:00:03","date_gmt":"2025-05-06T04:30:03","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=347200"},"modified":"2025-05-12T09:36:39","modified_gmt":"2025-05-12T04:06:39","slug":"court-fee-must-be-paid-on-sale-consideration-when-declaratory-suit-involves-title-based-on-agreement-to-sell-mp-hc-scc-times","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/05\/06\/court-fee-must-be-paid-on-sale-consideration-when-declaratory-suit-involves-title-based-on-agreement-to-sell-mp-hc-scc-times\/","title":{"rendered":"Court Fee must be paid on sale consideration when declaratory suit involves title based on agreement to sell: MP High Court"},"content":{"rendered":"
\n

Madhya Pradesh High Court:<\/span> In a petition filed under Article 227<\/a> of the Constitution of India<\/a> against the trial court’s order allowing defendants-respondents application and directing the petitioner to pay court fees on ₹11,05,000\/- despite the suit being framed only for declaration and injunction, a single-judge bench of Milind Ramesh Phadke, J., upheld the trial court’s order dated as it did not suffer from material irregularity or illegality and held that valuation of court fee must be based on real relief sought and not on mere drafting.<\/p>\n

In the instant matter, the petitioner-plaintiff filed a civil suit seeking declaration and permanent injunction against the respondents. The plaintiff was in possession of a shop near the State Bank of Indore which was let out to him by defendant 1 under a rental agreement dated 06-12-1997. Subsequently, an agreement to sell was executed between the parties for a sale consideration of ₹11,05,000\/-. The plaintiff paid ₹8,55,000\/- immediately, with ₹2,50,000\/- to be paid upon mutation of the property in the seller’s name and execution of sale deed.<\/p>\n

Due to an ongoing dispute among the defendants regarding ownership, the sale deed could not be executed. The matter was subject of a civil suit, resolved via compromise wherein the disputed shop fell to the share of defendant 1. However, the mutation was not done because as per Bhoop Singh<\/span> v. Ram Singh Major<\/span>, (1995) 5 SCC 709<\/a>, the compromise decree cannot take effect unless it is registered.<\/p>\n

The plaintiff, fearing alienation of the property by the defendants, filed a suit for declaration and injunction, without seeking specific performance. In response, the defendants moved an application under Order 7 Rule 11 CPC seeking direction to pay court fees on the full consideration amount of ₹11,05,000\/- stated in the agreement. The trial court allowed the defendants’ application. Aggrieved by the same, the plaintiff approached this Court under challenging the same.<\/p>\n

The petitioner contended that the suit was not for enforcement of the agreement to sell, but only for a declaratory relief and injunction against alienation. It was contended that as the plaintiff had no enforceable right to seek specific performance due to lack of title in the defendant, the suit was confined to preventing unlawful dispossession.<\/p>\n

However, the respondents argued that the court must look at the substance of the plaint, not merely the wording or form. It was contended that the relief sought by petitioner, when read in entirety, relates to protection of possession based on an agreement involving consideration, thereby invoking monetary value.<\/p>\n

The Court noted that the plaintiff’s prayer for declaratory relief is based on an agreement to sell, although not titled as a suit for specific performance, it carried “real money value”<\/span> and directly linked to the consideration amount of ₹11,05,000\/-. The Court relied on Subhash Chand Jain<\/span> v. Chairman, M.P. Electricity Board<\/span>, 2000 SCC OnLine MP 329<\/a>, where it is held that “mere astuteness in drafting the plaint would not glaze the jurisdiction of court for looking at the substance of the relief asked for.”<\/span><\/p>\n

The Court asserted that the plaintiff cannot evade proper court fee by framing the relief cleverly. The Court stated that the valuation and payment of court fee must reflect the “actual monetary interest involved.”<\/span> The Court cited Section 7(iv)(c) of the Court Fees Act, and reiterated that where a declaratory decree is sought with consequential relief, the valuation must be on the consideration stated.<\/p>\n

The Court upheld the reasoning of the trial court and held that “allegations in the plaint including the substantive relief claimed must be the basis for settling the court-fee payable by the plaintiff.”<\/span> On not finding any illegality or material irregularity in the trial court’s order dated 27-09-2023, the Court refused to interfere with the impugned order and dismissed the petition.<\/p>\n

[Ramcharan Goyal<\/span> v. Kamlarani Verma<\/span>, 2025 SCC OnLine MP 3733<\/a>, Decided on 02-05-2025<\/span>]<\/p>\n\n

Advocates who appeared in this case :<\/p>\n

Shri Jitendra Kumar Jain, Counsel for the Petitioner;<\/p>\n

Shri Anchit Jain, Counsel for the Respondent No. 1 to 3.<\/p>\n

Buy Constitution of India  HERE<\/a><\/h3>\n

\"Constitution<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

“Where the plaintiff attempts to under-value the plaint and reliefs, the Court has to intervene.”<\/p>\n","protected":false},"author":67514,"featured_media":317738,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[33522,14471,49102,81743,81748,68602,7201,31554,81744,32503,81745,81746,81747],"class_list":["post-347200","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-agreement-to-sell","tag-article-227","tag-court-fees-act","tag-declaration-and-injunction","tag-declaratory-suit","tag-justice-milind-ramesh-phadke","tag-madhya-pradesh-high-court","tag-order-7-rule-11-cpc","tag-real-money-value","tag-specific-performance","tag-substance-of-relief","tag-suit-valuation","tag-title-and-possession"],"yoast_head":"\nCourt Fee must be paid on sale consideration when 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Shri Maninder Singh Bhatti, 2. Shri Dwarka Dhish Bansal @ DD Bansal, and 3. Shri Milind Ramesh Phadke. JUDICIAL OFFICERS: 1. Shri Amar Nath Kesharwani, 2. Shri\u2026","rel":"","context":"In "Appointments & Transfers"","block_context":{"text":"Appointments & Transfers","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/appointments\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":305285,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/10\/19\/no-stay-on-eviction-suit-amid-pending-declaratory-suit-when-matter-in-issue-is-different-calcutta-hc-scc-blog\/","url_meta":{"origin":347200,"position":2},"title":"Eviction suit cannot be stayed amid pending declaratory suit when scope of inquiry in two suits is different: Calcutta High Court","author":"Ritu","date":"October 19, 2023","format":false,"excerpt":"The Calcutta High Court held that the decision in the declaratory suit would not necessarily non-suit the plaintiff in the eviction suit as the matters in issue in the two suits are not directly and substantially same.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"calcutta high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":211345,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/03\/05\/mp-hc-possibility-of-a-different-view-not-a-good-ground-to-interfere-in-limited-supervisory-jurisdiction-under-article-227\/","url_meta":{"origin":347200,"position":3},"title":"MP HC | Possibility of a different view not a good ground to interfere in limited supervisory jurisdiction under Article 227","author":"Bhumika Indulia","date":"March 5, 2019","format":false,"excerpt":"Madhya Pradesh High Court: The petitioners invoked Article 227 of the Constitution before the Bench of Sheel Nagu, J., seeking a decree of declaration of title and permanent injunction in respect of agricultural land, where they suffered dismissal of application under Order 13 Rule 1 & 2 of Civil Procedure\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":268825,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/06\/22\/madhya-pradesh-high-court-to-examine-arya-samaj-vivah-mandir-trusts-authority-to-solemnize-marriage-between-a-hindu-boy-and-a-muslim-girl\/","url_meta":{"origin":347200,"position":4},"title":"Madhya Pradesh High Court to examine Arya Samaj Vivah Mandir Trust’s authority to solemnize marriage between a Hindu boy and a Muslim girl","author":"Editor","date":"June 22, 2022","format":false,"excerpt":"Madhya Pradesh High Court: The Division Bench of Rohit Arya and Milind Ramesh Phadke, JJ., admitted a petition which was filed to address and examine some issues: 1. Whether a self-styled Trust allegedly registered as Arya Samaj Vivah Mandir Trust can solemnize marriage between a Hindu boy and a Muslim\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Madhya Pradesh High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":249187,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/03\/amendment-of-pleadings\/","url_meta":{"origin":347200,"position":5},"title":"Bom HC | In case of an application for amendment of pleadings, what would be the principal condition that Courts need to consider? Read on","author":"Bhumika Indulia","date":"June 3, 2021","format":false,"excerpt":"Bombay High Court: Milind N. Jadhav, J., addressed a matter with regard to the amendment of pleadings. Petitioners have submitted that they are aggrieved with the Orders passed by Civil Judge, Junior Division on 17-11-2016. Factual Matrix Petitioners were the original defendants and respondents the legal heirs of the original\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/347200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67514"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=347200"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/347200\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/317738"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=347200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=347200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=347200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}