Are you looking for a legal research tool ?
Get Started
Do check other products like LIBIL, a legal due diligence tool to get a litigation check report and Case Management tool to monitor and collaborate on cases.

Time Properties & Promoters v. Delhi Development Authority

Time Properties & Promoters v. Delhi Development Authority

(High Court Of Delhi)

Civil Revision No. 245 of 1984 | 29-05-1985

1. This revision petition under Section 115 of the Codeof Civil Procedure (for short the Code) is directed against the judgment and order dated 21st February, 1984 requiring the petitioner to pay ad valorem Court fee on the plaint. Briefly these are the facts. On 12th November, 1982 the petitioner-plaintiff made a bid of Rs. 24,95,000 for acquiring commercial Plot No. 5, measuring 243 sq. metres in the Community Centre, Wazirpur Industrial Area, Delhi at a public auction held by the Delhi Development Authority, defendant-respondent and he was declared to be the highest bidder. He paid a sum of Rs. 6,50,000 as earnest money by cheques which were encashed. The defendant by letter dated 24th March, 1983 accepted the bid of the plaintiff and required him to pay the balance amount of Rs. 18,45,050 within 45 days thereafter. The plaintiff by letter dated 7th May, 1983 requested the defendant to grant extension of time for a period of three months. By letter dated 29th June, 1983 the defendant extended the time for payment upto 4th August, 1983. On 15th July, 1983 the plaintiff while acknowledging the defendants letter dated 29th June, 1983 wrote to it that there existed a municipal primary school on the plot in question and there were remote chances of physical possession being delivered to him just after making full payment. The defendant was also informed that the petitioner after taking possession of the plot intended to start the construction of complex without any loss of time. The petitioner required the defendant to inform him that the possession would be delivered to him as soon as the payment was made. It appears that the defendant did not send any reply.

2. On 3rd August, 1983 the petitioner filed the present suit fixing the value of the suit for purposes of Court fee and jurisdiction at Rs. 130 and paid Court fee Rs. 13. The plaintiff has prayed that the defendant be restrained by a decree of perpetual injunction from demanding or claiming interest on the so called belated payment, cancelling the bid made in respect of the plot in question on 12th November, 1982 forfeiting the earnest money deposited by him and re-auctioning the plot. The defendant resisted the suit and amongst various other pleas it was pleaded in the written statement that the suit was not properly valued for purposes of Court fee and jurisdiction and that proper Court fee .had not been paid. The trial Court by the impugned order held that the plaintiff wanted to avoid his liability under the contract and an injunction restraining defendant from forfeiting the sum of Rs. 6,50,000 paid as earnest money and further restraining it from re-auctioning the plot. The trial Court concluded that substantial relief in the plaint was seeking relief from forfeiture of the earnest money of Rs. 6,50,000 and as such the plaintiff was liable to pay ad valorem Court fee.

3. Learned Counsel for the plaintiff submits that in short the suit is purely for the relief of injunction restraining the defendant from revoking the bid accepted by it and nothing more. His submission is that the petitioner has always been prepared to pay the balance amount of the auction bid but he apprehends that after payment of balance as demanded he would not be delivered possession of the plot as the same has been in possession of the M.C.D. who is even now running a school on the plot, in the written statement it is admitted that there is temporary encroachment on the plot in question but it does not amount to any hindrance as alleged by the plaintiff. The fact remains that the encroachment by the Municipal Corporation of Delhi on the plot in question is still in existence although the auction had taken place in 1982. Term No. 7 of the terms and conditions regarding auction of plot in question reads as under:

7. Delivery of Possession of Plots : After the acceptance of the bid and payment of full amount of premium offered by the bidder, the possession of the plot will be handed over and lease deed executed.

The grievance of the petitioner is that the defendant is not in a position to hand over possession after receipt of balance payment according to the terms and conditions and, therefore, the petitioner is entitled to an injunction restraining it from revoking the bid accepted by it. Learned Counsel submits that the plaint being purely for the relief of injunction within the meaning of Section 7(iv)(d) of the Court Fees Act the petitioner is entitled to put his own valuation for the purposes of Court fee and the same value shall be the value for purposes of jurisdiction. He submits that the plaintiff has valued the suit for purposes of Court fee at Rs. 130 and has paid Court fees accordingly. Learned Counsel further submits that the present suit is not for recovery of Rs. 6,50,000 and no decree can be passed, in a suit for injunction, for the recovery of Rs. 6,50,000. The petitioners claim is that on account of inability of the defendant to deliver possession to the plaintiff the defendant has no right to revoke or cancel the bid accepted by it. He further argues that for claiming the relief of injunction it is not necessary for the plaintiff to seek any other declaration, that the action of the defendant is unlawful and it is liable to be restrained from cancelling the bid accepted by it without any further declaration.

4. In Mahant Purushottam Dass and othersv. Narain and others, 14 (1978) DLT 8 (FB)=AIR 1978 Delhi 114 (FB), it has been observed that it is a matter of construction of plaint in each case for determining if the suit was purely for permanent injunction and that a suit for injunction will be treated as a suit under Section 7(iv)(d) of the Court Fees Act if a plaintiff can get an injunction without the necessity of praying for any other declaration. Further it has been observed that the prayer for declaration will be surplusage if the plaintiff can get the relief for injunction without praying for declaration, but declaration has to be prepared where an obstacle has to be removed before the plaintiff can claim the relief of injunction simpliciter.

5. In Harchand Singh Gujjar Singhv. Dalip Singh Pritam Singh, AIR 1965 Punjab and Haryana 468, it has been observed that the correct test is that where there is any legal necessity for the plaintiff to get a declaration of his right before he can get an injunction to protect it the suit will fall under Section 7(iv)(c) of the Court Fees Act even though the plaintiff sought declaration by means of averments in the body of plaint and not prayed for declaration specifically at the end of the plaint and if it is not necessary to pray for declaration the suit will fall under Section 7(iv)(d) of the Court Fees Act. Similar observations were made in Sri Rajah Nayani Venkata Ranga Rao Bahadur Zamindar Guru,v. Sri Rajah Tadakamalla Sita Ramachandra Rao Bahadur Zamindar Guru, AIR 1941 Madras 91.

6. The ratio of these decisions is that if there is legal necessity for a declaration before grant of relief of injunction it would not be a suit for injunction and if grant of declaration is not necessary the suit would be purely a suit for injunction.

7. In the present case the allegation of the plaintiff is that the plot in question has been encroached upon by the Municipal Corporation of Delhi and, therefore, the defendant is not in a position to fulfil its term regarding delivery of possession and that the defendant instead of removing the encroachment wants to take recourse to cancel the bid, re-auction the plot and forfeit Rs. 6.50 lacs collected as an earnest money. The defendant did not reply to the plaintiffs letter dated 15th July, 1983 in which plaintiff sought an assurance from defendant regarding delivery of possession after payment. Thus it is clear that the claim of the plaintiff is that the defendant in law is not entitled to revoke the bid accepted by it as it is not in a position to deliver possession of the plot in question according to terms of auction. It is not denied that Municipal Corporation of Delhi is running a primary school on the plot. Reading the plaint as a whole I am of the opinion that it is purely a suit for the relief of injunction. The plaintiff is not obliged to seek any declaration before the grant of relief of injunction. The facts regarding auction on 12th November, 1982 payment of earnest money, extension of time for payment of amount upto 4th August, 1983 are not disputed. The only dispute is whether defendant is in a position to hand over possession as soon as the balance payment is made by the plaintiff. In these circumstances the plaintiff is not under any obligation to seek any other declaration.

8. Learned Counsel for the defendant submits that there is no allegation in the plaint about the plaintiff being ready and willing to pay the balance of the premium price. Reading the plaint as a whole it is clear that the plot is in possession of Municipal Corporation of Delhi and that on 15th July, 1983 the plaintiff sought a clarification from the defendant but no reply was given. In a suit for injunction it is not necessary for the plaintiff to plead readiness and willingness to pay the balance of the premium price. It is only in a suit for specific performance of a contract that the plaintiff is under an obligation to allege readiness and willingness to perform his part of the contract. Thus specific allegation on the part of the plaintiff that he has been ready and willing to pay the balance of the premium price is not necessary. Learned Counsel submits that before the grant of injunction the plaintiff is under an obligation to seek a declaration. He has, however, not clarified as to what type of declaration the plaintiff must seek before the grant of declaration.

9. Learned Counsel for the respondent refers to M/s. Ratlam Straw Board Mills Pvt. Ltd.v. Union of India and another, AIR 1975 Delhi 270, wherein the plaintiff had filed a suit for declaration that contract came to end by acts of defendants and injunction be issued restraining the defendants from recovering the specified amount. It was held that ad valorem Court fee was payable. In Punjab Exchange v. Rajdhani Grains Ltd, 1975 Raj. Law Reporter 485, it has been observed that if, in a suit for mandatory injunction relief claimed by the plaintiff amounts to his asking for possession from a defendant in exclusive possession the Court fee payable is as required by Section 7(v) of the Court Fees Act. In Asit Baran Chaudhary and anotherv. Profulla Chandra Bose, AIR 1984 Calcutta 366, the plaintiff was seeking to avoid forfeiture of a sum of Rs. 91,900 which on terms of the contract the defendant No. 1 had forfeited. Under those circumstances it was held that the plaintiff was liable to pay ad valorem Court fee. In the instant case it is not the case of the defendant that the sum of Rs. 6,50,000 has already been forfeited by it. These precedents referred to by the learned Counsel for the defendant are not relevant for the determination of Court fee payable in the present case.

10. The trial Court acted illegally in the exercise of its jurisdiction by demanding ad valorem Court fee. The impugned order is liable to be set aside. The revision petition is accepted setting aside the impugned order dated 21st February, 1984. It is held that the suit has been properly valued for purposes of Court fee and jurisdiction and proper Court fee has been paid. No order as to costs. Parties are directed to appear before the trial Court on 22nd July, 1985.

Advocate List
  • For the Petitioner S.C. Nigam, Advocate. For the Respondent R.K. Khanna, Ram Paul, Advocates.
Bench
  • HON'BLE MR. JUSTICE SULTAN SINGH
Eq Citations
  • AIR 1986 DEL 317
  • 28 (1985) DLT 133
  • (1985) ILR 2 DELHI 578
  • 1985 RLR 398
  • LQ/DelHC/1985/326
Head Note

A. Civil Procedure Code, 1908 — S. 115 — Court fee — Suit for injunction — Suit for injunction, purely for relief of injunction, held, does not require payment of ad valorem Court fee — Court fee payable is as per valuation of suit for purposes of Court fee and jurisdiction — Court fee Act, 1870, S. 7(iv)(d) B. Civil Procedure Code, 1908 — S. 115 — Court fee — Suit for injunction — Suit for injunction, held, is not a suit for recovery of money — Hence, specific allegation on part of plaintiff that he has been ready and willing to pay balance of premium price, not necessary — Court fee Act, 1870, S. 7(iv)(d) C. Specific Relief Act, 1963 — S. 38 — Specific performance — Readiness and willingness — In a suit for injunction, held, it is not necessary for plaintiff to plead readiness and willingness to pay balance of premium price — It is only in a suit for specific performance that plaintiff is under an obligation to allege readiness and willingness to perform his part of contract — Court fee Act, 1870, S. 7(iv)(d)