When filing a civil suit in India, one of the first steps involves calculating the valuation of the suit and paying the appropriate court fees. This is a mandatory payment that which is essential for the initiation of a suit. Without paying the court fees, whether ad-valorem or fixed, as the case may be, the plaint would not be registered, as no relief can be granted. An incorrect or deficient court fees can result in delays in registration of the suit, rejection of the plaint, or even dismissal of your suit. Understanding how court fees are calculated is essential for litigants, lawyers, and legal researchers alike. In this article, we will explore how court fees are determined, the applicable laws in India, and how to avoid common mistakes in calculation.
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The Governing Law: Court Fees Act, 1870
The law governing the payment of court fees in most parts of India is the Court Fees Act, 1870. However, certain states have enacted their own court fee legislations with variations. This article primarily focuses on the Court Fees Act, 1870, which remains applicable in majority of states and union territories. The Act came into force on 1st April 1870.
Key Provisions:
Section 4 :
No document which is chargeable with a fee shall be filed or exhibited in any court unless the fee has been paid.
Section 7 :
Computation of fees payable suits. It describes that the amount of fees payable under the Act in Suits shall be computed as:
- For money suits: It includes suit for damages or compensation and the valuation would be the amount claimed in such suit.
- For Maintenance and annuities: In suits for maintenance and annuities or other sums payable periodically, the valuation would be the value of the subject matter of the suit and such values shall be deemed to be ten times the amount claimed to be payable for one year.
- For other movable property : The valuation would be the market value of the property at the date of presentation of the plaint
- For suits related to immovable properties or suit for specific performance of contract: The valuation would be the actual value upon which the agreement or contract is based.
Section 9:
Schedule I and II :
These schedules outline specific fees for different types of documents and suits.
Factors That Affect Court Fee Calculation
Nature of the Suit
The fee depends largely on the subject matter of the suit. For instance, fees differ for: Suits for recovery of money, Suits for declaration with consequential relief, Partition suits, Injunctions, Specific performance etc
Valuation of the Suit
Under the Suits Valuation Act, 1887, the value of the suit for the purpose of court fees and jurisdiction must be correctly stated. This can be based on: Market value, Annual rental value, Specific value claimed by the plaintiff
Relief Sought
Whether the relief is monetary or declaratory also impacts the quantum of fee. Declaratory relief often attracts a fixed court fee, however, if consequntial reliefs have been sought for in the suit, ad-valorem court fees is required to be paid. For example, if one document is sought to be be cancelled by a person, who is not a party to the said document, then a fixed Court fees is payable, but if that person seeks cancellation of the said document and recovery or restoration of possession, he would have to pay the ad-valorem Court fees.
Monetary claims require an ad valorem fee (i.e., calculated as a percentage of the amount claimed).
Money Suits : Governed by Article 1 of Schedule I of the Act.Court Fee = Ad valorem on the amount claimed.
Example: If the plaintiff claims ₹10,00,000, the court fee is calculated based on slabs defined in the Schedule.
Suits for Injunctions
Typically attract a fixed fee, depending on the state rules.In Odisha, for an instance, it might be ₹100 or ₹110 for permanent injunction suits without paying the ad valorem court fees on the entire valuation.
Partition Suits
Fixed Fee is often leivable irrespective of the valuation of the suit.For an instance if the valuation of the property is Rs. 10,00,000/- or Rs. 1,00,00,000/-, a fixed court fees of Rs. 300/- is to be paid.
Suits for Declaration with Consequential Relief
Court Fees is not fixed and depends on the market value of the consequential relief.A declaratory suit without consequential relief may attract only a nominal fee.
State Amendments:
Several states have modified the structure of court fees. For example:
Maharashtra:
Governed by the Bombay Court Fees Act, 1959
Tamil Nadu:
Has its own Tamil Nadu Court Fees and Suits Valuation Act, 1955
Kerala:
Follows the Kerala Court Fees and Suits Valuation Act, 1959Each of these states has different slabs, valuation methods, and exemptions (e.g., for women, SC/ST litigants, or indigent persons).
Odisha:
Practical Tips for Calculation
- Use court fee calculators provided on high court websites or bar association portals.
- The website of IGR of respective states can be accessed to know the valuation of the suit lands
- Check local amendments before relying solely on the Court Fees Act, 1870.
- Always consult a lawyer to double-check the category and applicable relief.
- If you cannot afford the fee, consider applying as an indigent person under Order 33 of the CPC.
- In Odisha, if the valuation is Rs. 50,000/- then ad-valorem Court fees of Rs. 1789.50 along with 50% Surcharge is payable.
- If the amount exceeds Rs. 50,000/-, then for each Rs.5000/- thereafter of part thereof, additional Rs 100/- each is payable with the surcharge of 50%.
Illustrations:
- If an agreement is executed for sale of a land between A & B, wherein A is the owner and B is the intending buyer, and thereafter A is not performing his part of the Contract. Here B can sue A in a suit for specific performance of contract and the valuation of the Suit would be the total Consideration amount mentioned in the agreement to sale.
- If A has a brother namely C, who is a co-owner of the property and being his back A had executed the agreement with B. In that case, C can file a suit for declaration that the agreement so executed is void and for that there would be no ad-valorem Court fees, only Rs. 19.50 is payable as fixed Court fees.
- Considering illustration no.2, if C would have prayed for restoration of possession, then he would have to pay ad-valorem Court fees based upon the valuation of the Agreement.
- Suppose there are 5 siblings who have inherited the ancestral property worth more than 10 Crores. In this case, if any dispute arises between them, any one of them may sue other in a suit for partition and carving out his share. Here the fixed Court fees of Rs. 300 is payable, which is irrespective of the valuation of the case land.
- If the valuation of the suit is Rs. 50 lakhs and the person filing the suit for declaration is a woman. Then no Court fees needs to be paid in view of SRO of 1994, where women were exempted from paying Court Fees (For Odisha).
- Suppose the valuation of the suit is only Rs. 50,000/- then the advalorem Court fees would be Rs. 1789.50 + 50% Surcharge = Rs. 2684.25/-
- If the valuation of the suit is 5,00,000/- then the ad valorem court fees should be [1789.50(for first 50000)+ 100*90(Rs.100 for subsequent 5000s)]+Surcharge of 50% = 10,789.5 + 5,394.75= 16,184/-
Conclusion
Court fees are not merely a formality; they are essential to getting your case admitted. Calculating them correctly involves understanding the nature of the suit, the relief claimed, and the valuation method. While the Court Fees Act, 1870 provides the basic framework, state-specific rules must also be kept in mind. A small mistake in calculation can cause big procedural hurdles, so it’s always wise to verify your fee with professional guidance.
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