VALUATION OF SUIT FOR THE PURPOSE OF COURT FEE IN

SUIT FOR RECOVERY OF MAINTENANCE AND ANNUITIES

SUBMITTED TO
Ms. Fozia Shaheen

SUBMITTED BY
Moazum Nawaz
BL3F17M065
LLB (3 Years)
Session: 2017-20
Last Date of Submission: 02-05-2020

COLLEGE OF LAW
UNIVERSITY OF SARGODHA, SARGODHA
 i

TABLE OF CONTENTS

Abstract………………………………………………………………….. iii

Introduction……………………………………………………………... 1

Background ……………………………………………….………….. 2

Objectives of Research Study………………………………………… 3

Research Methodology Adopted……………………………………… 3

Relevant Laws………………………………………………………… 3

Definition of Valuation……………………………………………….. 4

Nature and Scope of the Court Fees Act 1870………………………... 4

Scope………………………………………………………………….. 4

 Federal Enactment…………………………………………….. 4

 Prescribes Fees………………………………………………... 4

 Substantive as well as Procedural…………………………….. 4

 Two kinds of Court Fees……………………………………… 5

 Documents which are exempted from court fee under section

5
19 of court fee act……………………………………………...

General rule settled in section 7 of the Court Fee Act 1870………….. 5

 Valuation of Suit For The Purpose of Court Fee in Suits for

5
Recovery of Maintenance and Annuities……………………...

Explanation…………………………………………………………… 6

Scope………………………………………………………………….. 6

Other sum payable periodically………………………………………. 6

Suits following within the ambit of clause (ii)………………………... 7

Suit not falling under clause (ii)………………………………………. 7

 ii

Effect of deficiency in court fee on documents………………………. 7

Section 149 of CPC exception to that general rule…………………… 8

Where deficiency is not made up in the time allowed………………... 8

Decision of question as to valuation………………………………….. 8

Refund of Court Fee………………………………………………….. 9

Legal Status of court Fee in Islam……………………………………. 9

Study of Section 7 Clause (II) In The Light of Judicial Decisions…… 9

Discussion and Analysis………………………………………………... 12

Conclusion………………………………………………………………. 13

References……………………………………………………………….. 14
 iii

Valuation of suit for the purpose of Court fee in suit for

Recovery of Maintenance and Annuities

ABSTRACT

In this research article, generally a comprehensive discussion has been made on

the Court Fees Act 1870. A brief background of The Court Fess Act is given in this

research paper. Furthermore, the topic valuation of suit for the purpose of court fee in suit

for maintenance and annuities has been discussed in the light of judicial decisions and

case laws. Besides this, the legal status of court fee in Islam has also been given in this

research study. Modes of valuation according to section 7 of the Court Fees Act as well

as deficiency in the court fee, effect of deficiency in court fee and refund of court fee

have also been discussed in this research study.

 1

INTRODUCTION

This research paper deals with the topic of Valuation of suit for the purpose of

court fee in suit for Recovery of Maintenance and Annuities. First of all, it is necessary to

know about the law under which the court fee in civil suit is paid in Pakistan. In Pakistan

in the procedure of court fee is regulated by The Court Fees, Act, 1870. Determination of

court fee is one of the important factors of the legal world. We can’t file a single suit

without paying the court fee. The court fees Act, 1870 is very important in this regard for

the determination of court fee in various kinds of suits of civil nature. Besides this it is

necessary to know about the purposes for which court fee is levied. In this modern era,

every state relies on certain fiscal enactment to ensure the collection of revenues. The

main purpose of court fees Act is to levy fesses for the service to be rendered by the

court. The Court Fee Act is basically a fiscal statute, whose purpose is to collect the

revenue to enhance the treasure of the state. It curtails unnecessary litigation. Different

purposes of court fees Act, 1870 have been discussed such as e.g collection prior to

litigation, to test the bona-fide intention, to lay down rules for collection, to determine the

court fee, to check frivolous litigation and to lay down the exemption from the court fee.

Court Fees Act 1870 is actually a fiscal enactment in its nature, entitled only to secure

revenue, it is a form of taxation. According to section 7 and the first and second Schedule

of The Court Fees Act, 1870 court fee is determine by mainly two ways.

1. Ad Valorem court fees: when the court fee has to be paid according to the value

of the subject matter that is known as the Ad valorem court fees.

2. Fixed Court Fees: when the court fee is to be paid according to the prescribed

amount fixed by the government, is called fixed court fees. The Ad valorem court
 2

fee has been enumerated in the first Schedule, while the fixed court fee has been

enumerated in the second schedule of the court fee Act section 7 of the Court Fee

Act is very important in legal practice section 7 of the court fee Act contemplates

three modes of valuation of the subject matter of a suit.

(i) By valuing it according to its market value.

(ii) By ascribing to the subject matter an artificial value based simply on

certain fixed rules of calculation, which is called artificial formula.

(iii) By requiring the plaintiff himself to value the relief he seeks, which is

called self-valuation. Generally valuation of a suit is of two types. A suit is

to be valued for two purposes. Firstly for determining the pecuniary

jurisdiction of the court in which it should be filed. Secondly for fixation

of the court fee to be paid. The valuation for purposes of jurisdiction has

to be made under the Suits Valuation Act, 1887. The valuation for the

purposes of court fee has to be made according to the provisions of the

Court Fees Act, 1870.

Background

Levy of The Court Fees is unknown to ancient India. When history is traced,

during Moghul rule and the period prior to that, there was no fees even on the

administration of civil justice since administration of justice was totally free. Before the

advent of British rule in India, the administration of justice was considered to be the basic

function of the Rulers as guardian of the people without levy of any charge on the party

approaching for redress of its grievance. It was only after the British rule that regulations

imposing court fee were brought into existence in or about 1795. In the begging the
 3

imposition of fees was nominal but, in the course of time it was enhanced gradually under

the impression that it would prevent the institution of frivolous and groundless litigation

and as an effective deterrent to the abuse of process of courts, without causing

impediment to the institution of just claims. It is from that background the central Court

Fees Act, 1870 was enacted (AIR 1996 SC 676 at para 6).

Objectives of Research Study

Following are the objectives of this research paper

i. To describe the nature and genera ambit of the court fee Act 1870.

ii. To elaborate valuation of suit for the purpose of court fee in the suit for recovery of

maintenance and annuities.

iii. To describe other relevant legal provisions in relation to section 7 of the court fee

Act.

iv. To highlight the importance of clause 2 of section 7 of court fee Act in the light of

different judicial decisions.

Research Methodology Adopted

Research Methodology Adopted in this research is theoretical. Main sources used

are books, internet, research articles and case laws. Case laws helped to know the

importance and understanding of the section. Books and internet helped to know about

the previous researches done on this topic.

Relevant Laws

Special Law: The Family courts act 1964.The Family courts (Amendment)

Ordinance 2001.

General Laws: The Code of Civil Procedure, 1908. (b) The Court Fees Act, 1870.
 4

Definition of Valuation

Valuation has not been defined in the court fee Act valuation means value of the

subject matter of the suit. According to legal dictionary: Valuation is a process of putting

a price on a piece of property. The value of business, personal property, intellectual

property (such as patents, trademarks and copy rights), and real estate are commonly

determined through the practice of valuation.

Nature and Scope of the Court Fees Act 1870

The court fee Act is a fiscal enactment and was enforced on 1st April 1870.

Meaning of Fiscal Enactment: Fiscal Enactment is such a law which has for its primary

purpose the collection of revenues for government.

Scope

 Federal Enactment:

The court fee Act 1870 is the Federal Law relating to the subject of court fee mention

in the concurrent legislation list of the 4rth schedule of the constitution of Pakistan 1973.

 Prescribes Fees:

The court fee Act prescribes Fees in schedule I and II on the documents

 Substantive as well as Procedural:

The Court Fees Act is substantive as lying laws and procedural as giving procedure

in it for how fee is to be determined.

 Condition under which the documents may be received, filed or Registered:

This Act not only prescribed fees butt provides how there fees are to be determined, how

question as to the sufficiency and deficiency of fees on documents are to be determined

two kinds of court fees.

 5

 Two kinds of Court Fees:

There are two kinds of court fees are mentioned in the court fee Act

a) Ad valorem fees: According to the value mentioned in schedule 1st

b) Fixed Fee: Mentioned in the 2nd schedule of the court fee Act 1870

 Documents which are exempted from court fee under section 19 of court fee act:

The documents mention in section 19 are not chargeable with any fee. E.g

a) Power of attorney or Vakalatnama

b) Written statement called for by the court after the hearing of a suit

c) Probate of will

d) Supply of irrigation of water and other documents mention in section 19 are

exempted from the court fee.

General rule settled in section 7 of the Court Fee Act 1870

General rule settled in section 7 of the Court Fee Act all the suits mentioned in

section 7 of the court fee act shall be computed Ad-valorem in the section 17 of the court

fee act is exempted from this general rule.

Valuation of Suit For The Purpose of Court Fee in Suits for Recovery of

Maintenance and Annuities

Section 7 (ii) deals with the suit of maintenance and annuities. Clause (ii) of

section 7 states that in all suits for maintenance and annuities or other sum payable

periodically the court fee shall be computed according to the value of the subject matter

of the suit, and such value shall be deemed to be ten times the amount claimed to be

payable for 1 year.

 6

Explanation

First of all it is necessary to know about the term maintenance and annuities.

Maintenance means money paid to support a spouse (Husband or Wife). While the term

Annuities donates a series of payment made at equal intervals. Example of annuities are

regular deposit to a saving account, monthly insurance payments and pension payments.

These payments may be made weekly, monthly, quarterly, yearly, or at any other regular

interval of time. In suits for the maintenance the amount of the court fee shall be valued

according to the subject matter of the suit, subject matter is the substance for adjudication

and it has reference to the right of party who seeks relief. Now it is necessary to know the

different aspects of this clause.

Scope

Scope of clause (ii) of section 7 this clause makes provision for suits for

maintenance, for annuities or other sums payable periodically. It does not apply to suits

for arrears of maintenance or annuities, which fall under clause (i) of section 7, but to

such suits for maintenance or annuities etc. where the rate of such maintenance or

annuities is to be determined are where the rate of such maintenance or annuities is to be

fixed.

Other sum payable periodically

The word other some payable periodically in the section must be construed as

implying sums payable of the nature of maintenance and annuities upon the rule of

ejusdem jeneris as where there are general words following particular specific words in a

section, the general words must be confined to the things of same nature (AIR 1927 Pat.

123, 4 PLJ 561).

 7

Suits following within the ambit of clause (ii)

a) Maintenance suit: a suit for declaration of a right to receive a periodical payment

fall under this clause, and the court fee for such a suit would be ten time the

amount payable for 1 year. (42 All 356).

b) Right to an annuity: similarly in a suit for declaration of a right to an annuity, the

court fee payable under this clause on ten times the amount of annuity. (1883 PJ

p.205).

c) Right to the profit of Inam Lands: a suit for declaration that under an express

agreement, the plaintiff is entitled to a share of the net income of certain Inam

land falls under this clause and ten time the average annual profits may be taken

to be the value of relief on which the court fee to be paid. (1883 PJ p.205)

Suit not falling under clause (ii)

A suit for a declaration that the plaintiff is entitled to settled properties subject to

certain trust which is created by the will of last owner in favor of some temples and a

provision for the maintenance of his son is not a suit or a sum payable periodically and

does not, therefor , fall under this clause.

A suit for the arrears of emoluments attached to an office, and for a declaration of

right with in a direction that the defendant should pay certain emoluments annually in

future was held not to fall under clause (ii), as the right to emoluments was conditional on

performance of service and was not a sum payable periodically.

Effect of deficiency in court fee on documents

Section 4 and 6 of the Court Fee Act states that no document of any of the kinds

specified as chargeable with fee in the first or second schedule of the Court Fee Act shall
 8

be filed, exhibited or recorded in any court of justice or shall be received or furnished by

any public officer unless in the respect of such document there be paid a proper fee for

such document mentioned in those schedule.

Meaning of deficiency in Court Fee: where the whole or any part of prescribed fee upon

any document relating to court fee has not been paid, it is called deficiency in Court Fee.

Section 149 of CPC exception to that general rule

Section 149 of CPC proved an exception by conferring discretion to the court to

allow the party to make good the deficit court fee at any stage of the proceeding.

Section 149 describe that Where the whole or any part of any fee prescribed for any

document by the law for the time being in force relating to court fees has not been paid,

the Court may, in its discretion, at any stage, allow the person, by whom such fee is

payable, to pay the whole or part as the case may be, of such court fee and upon such

payment the document, in respect of which such fee is payable, shall have the same force

and effect as if such fee had been paid in the first instance.

Where deficiency is not made up in the time allowed

Under Order 7 rule 11 of CPC if despite of the given time to plaintiff is make up

deficiency with that time, he does not do so, the court shall reject his plaint. The plaint

shall be rejected where the relief claimed is undervalued, and the plaintiff, on being

required by the Court to correct the valuation within a time to be fixed by the Court, fails

to do so.

Decision of question as to valuation

Section 12 of the Court Fee Act states that every question relating to the valuation

for the purpose of determining the amount of any fee chargeable on plaint or
 9

memorandum of appeal shall be decided by the court in which such plaint or

memorandum, as the case may be, is filed and such decision shall be final as between

parties to the suit. Court of first instance shall decide such issue.

Refund of Court Fee

Section 13, 14, 15 of the Court Fees Act 1870 prescribes the procedure of refund

of court fee if the court fee is over paid. The rationale behind these provisions is that the

government should not take profit on the mistake of litigant.

Legal Status of court Fee in Islam

Payment of court fee on plaints, Memorandums of appeal etc. was declared be

repugnant to the injunction of Islam by federal Shariat Court. Islam does not recognize

the concept of court fee. According to Islam it is one of the basic rights of a citizen to get

justice. Therefore, the state has not authority to charge any fee for the administration of

justice. It is against the basic concept of justice in Islam to charge any court fee or to

make the people bear the cost of litigation. According to Islam judicial services should be

free of cost.

Study of Section 7 Clause (II) In The Light of Judicial Decisions

The following case laws show that how valuation of court fee in suit for recovery

of maintenance and annuities is made.

1. SMT. Poonam Rani AGE V. Dashan Lal Kapah

In this case the court observed that the revision petition deserved to be dismissed

for reasons to be recorded. The Family Court, had not been set up, in the state of Haryana

till the date when the order was passed. The court observed that it was only a suit for

maintenance, claiming maintenance allowance Rs. 10,000/- per month, which was filed
 10

by the plaintiff/ revision petitioner, in this revision petition the court directed in view of

section 7 clause (ii) of the court fees Act to pay Ad valorem court fee on the amount of

12 lac.

2. 1991 M L D 210 In this case the observed that Suit for maintenance decreed-Court-

fee payable on appeal-Subject-matter in dispute being plaintiff's right to get

maintenance and corresponding liability of defendant to pay the same, such subject-

matter was to be assessed and computed in accordance with express terms of S. 7(ii),

Court Fees Act, 1870. 1991 M L D 210

3. Shrimati Kapoor Kaur Widow of Arsal Singh v. Gopal Singh Son of Ganda Singh

and Others

The court observed that the fractional share which the plaintiff was claiming and the

plaintiffs has paid Court fee of Rs. 20/- only. Although there has been an alternative

prayer for maintenance, the plaintiff has...not paid the higher court fee involved for

claiming maintenance. The trial Court has found that the suit has not been properly

valued and while holding that the plaintiff is not entitled to relief as...attempt to justify

the non-payment of court fee for the alternative relief of maintenance which involved a

payment of higher court fee other than the prayer for declaration sought.

4. RoshanLal v. Smt. Khampa Devi Court: Himachal Pradesh High Court Date: 11 Jan,

2006

The Court observed that such claim under the provisions of Section 7(2) of the

Court-fees Act, 1870 provides that in suits for maintenance and annuities, the value of the

suit for, the purposes of Court-fee shall be deemed to be 10 times the amount claimed to

be payable for one year. In the present case, the wife claimed maintenance at the rate of
 11

200/- per month or Rs.... 2,400/- per annum. Therefore, the value of the suit for the

purposes of Court-fee would be Rs. 240,000/-. This is the valuation of the suit for the

purposes of jurisdiction also in accordance with the provisions of section 7 clause 2 of the

Court Fees Act.

5. Vaijantimala Mala Budhwar v. Smt. SeemaBudhwar and Others Court: Punjab &

Haryana High Court Date: 29 Sep, 2014

In this case the court directed the respondents-plaintiffs have been called upon to

make payment of ad valorem Court fees to the extent of Rs. 12,000/- and have been

directed to make the deficiency in Court fee good, is under challenge at the...instance of

the petitioner-applicant-defendants. Seeking modification of this order, it is claimed that

ad valorem Court fee should be payable by the respondents on a sum of Rs. 12 lakhs and

in default.../- per month of the respondent-plaintiffs, annual maintenance claimed comes

to Rs. 10,000 × 12 = Rs. 1,20,000/- and Court fee on 10 times of such value is payable by

them.
 12

DISCUSSION AND ANALYSIS

In the light of above stated case laws can be analyzed in suit for maintenance and

annuities a plaintiff has to pay a heavy and burdensome amount in his cases. The artificial

formula and Ad valorem fees which are prescribed under section 7 of the Court Fees Act,

1870 are against the injunctions of Islam. On the other hand, the Family Court Act 1964

under section 19 prescribed that notwithstanding anything contained in the Court Fees

Act, 1870, the court fee to be paid on any plaint are Memorandum of appeal shall be Rs.

15 for any kind of suit or appeal under this Act. So in an Islamic state the court fee which

is prescribed in the Court Fees Act is against the spirit of Islam. It is bounded duty of an

Islamic state to administer justice to its citizen in respective of caste, creed, or color free

of any charge. Social justice has been enunciated in Islam, the state shall insure

inexpensive and expeditious justice. The Holy Prophet (PBUH) himself performed the

duty of a judge and he used to sit in the Mosque where everyone was allowed to come

and present his claim before him for adjudication without paying any fee. So it can be

said that Pakistan is an Islamic state its court fee system should be regulated according to

the injunctions of Islam as led down in Holy Quran and Sunnah.

 13

CONCLUSION

It can be concluded that the court fee system of Pakistan is regulated by the court

fee Act 1870. Section 7 of the Court Fee Act tells about the modes of valuation of court

fee in different kinds of suits. In suits for maintenance and annuities the valuation of the

suits for the purposes of court fee shall be according to the value of subject matter of the

suit and such value shall be deemed to be 10 times the amount claims to be payable for

one year. The Court Fees Act 1870 is basically a fiscal statute whose purpose is to collect

the revenue for the state. The modes which are told in section 7 of the enactment like

artificial formula and Ad valorem court fee are quite apposite to the true spirit of Islam.

The court fee system of Pakistan should be adjusted according to the injunctions of Islam.

An ideal Islamic state stresses on free of cost, administration of social justice. So, court

fee must be nominal in all the cases and free of cost judicial system should be developed

in Pakistan.
 14

REFERENCES

Books:

 Iqbal; M. (2018). The Court Fee Act, 1870(page 15-16). Pakistan. PLD Publishers,

35 Nabha Road, Lahore.

 (n.a). The Court of Civil Procedure (page 129, 157). Pakistan. Mansoor Book House

2- Katchery Road, (Anarkali) Lahore.

Articles:

 Shah; A.H. Object of Court Fees Act (page 1, 2). Pakistan College of Law.

 Islam, K.S. (1st September 2016). An Assignment on Solutions of Basic Questions

(page 5, 6). Bangladesh University of Business and technology.

 Rao; B.S.S. The Law on Court Fees and Suit Valuation in a nutshell, (page 1). A.P

Judicial Academy, India.

 PLD 1992 Federal Shariat Court 195 (27 May 1991). Pakistan.

Case Laws

 SMT. Poonam Rani AGE V. Dashan Lal Kapah

 1991 M L D 210

 Shrimati Kapoor Kaur Widow of Arsal Singh v. Gopal Singh Son of Ganda Singh

and Others

 RoshanLal v. Smt. Khampa Devi Court: Himachal Pradesh

 Vaijantimala Mala Budhwar v. Smt. SeemaBudhwar and Others

Websites:

 http://bdlaws.minlaw.gov.bd/act-21/chapter-details-43.html

 http://nasirlawsite.com/llb3/courtfee.htm
 15

 https://www.google.com/url?sa=t&source=web&rct=j&url=https://districts.ecourt

s.gov.in/sites/default/files/Law%2520on%2520CF%2520and%2520SV%2520-

%2520Sri%2520B%2520Shiva%2520Sankar%2520Rao.pdf&ved=2ahUKEwjB9

qKX7unoAhXCyqQKHVTvCMkQFjANegQIBBAC&usg=AOvVaw1yiH7nJQ_

YK8RgoxM7q2DZ

 https://www.google.com/url?sa=t&source=web&rct=j&url=http://suraj.lums.edu.

pk/~ro/%3Fgo%3Ddownload%26path%3D%252F2011-

2012%252FSpring%2BSemester%2B2011-2012%26file%3DLAW%2B481B-

Legal%2BPractice-

Khwaja%2BAmer%2BFarooq.pdf&ved=2ahUKEwjTq6jxsOroAhVzsXEKHQw

wCvIQFjAEegQICRAB&usg=AOvVaw0uj0xS7ttYaWjuv_CXD-nz

 https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.leappaki

stan.com/wp-content/uploads/2017/05/object-of-court-fee-are-there-any-

document-exempted-from-court-fee.pdf&ved=2ahUKEwiS6Lnaz-

roAhWFXhUIHfwIDNkQFjARegQIBBAB&usg=AOvVaw3apKpz1xFvxB19HX

Xx0oaA

 https://www.academia.edu/30646246/court_fees

 http://education.dewsoftoverseas.com/vakilno4/the_court_fees_act/Chapter%203/

s7.html

 http://www.commonlii.org/pk/other/PKLJC/reports/33.html

 https://paklawyer.com/blog-post/maintenance/

 http://thelawstudy.blogspot.com/2016/01/scope-and-object-of-court-fees-

act.html?m=1