Valuation of Lawsuits
Valuation of lawsuits is one of the most confusing matter. Value of lawsuits for the pecuniary jurisdiction of court and Court Fee can be same; and sometimes different also. Separate laws deal with each type of value. Court Fee Act, 1870 (CFA) charges court fee on lawsuit in order to collect revenue for the state. Whereas the Suit Valuation Act, 1887 (SVA) fixes the value of lawsuit for pecuniary jurisdiction of the court. It is not necessary that the court fee value and the jurisdiction value of the lawsuit should be the same. However, there are certain suits wherein valuation of lawsuits for both purposes would be same. Section 8 of Suit Valuation Act prescribes such certain lawsuits where the valuation of the lawsuits for purpose of court fee and the jurisdiction would be same.
Meaning of Jurisdiction
Jurisdiction means the authority of the court to administer justice in accordance with the rules stated by law and within the limits imposed by law. It is a general rule that in value of all suits for the purpose of jurisdiction would be the same as for the purpose of court fee. However, there are exceptions to this general rule. Value for jurisdiction and court fee would be different in cases falling under:-
- Section 8 of the Suit Valuation Act and
- Section 7 of the Suit Valuation Act
Scope of Section 8
This section serves as a means to determine valuation of lawsuit for pecuniary jurisdiction of the court.
Essentials To Attract Section 8
In order to attract section 8, following essentials must be present:-
- Suit must not fall under exceptions. For the applicability of section 8, it is necessary that suit must not fall under exceptions enumerated under Section 7 of CFA. Those exceptions are as under:-
- Section 7 (V)
- Section 7 (VI)
- Section 7 (IX)
- Section 7 (10)(d)
- Suit must not fall under exceptions. For the applicability of section 8, it is necessary that suit must not fall under exceptions enumerated under Section 7 of CFA. Those exceptions are as under:-
- Ad Valorem court fee is payable
Procedure for Determining the Value for Jurisdiction
Under this section, value for court fee is determined first and then the same valuation is adopted for pecuniary jurisdiction.
Principles for Determining the Valuation
Principles for determining the valuation. The following principles are observed in determining the valuation:-
- Allegation in the plaint
- Relief claimed.
- Aggregate of two or more reliefs.
- Value of subject matter.
- Value as a preliminary issue. The question of valuation should be determined as a preliminary issue.
Determination of Jurisdiction Value of Lawsuit
For the purpose of jurisdiction, the valuation given by plaintiff is accepted as correct prima facie unless it is deliberately overvalued or undervalued. In cases of undervaluation or overvaluation, the court determines the true value.
Categories of Suits of Same Valuation
The below mentioned categories of suits shall contain same valuation:-
- Accounts suit
- Administration suit
- Partnership suits
- Suit for injunction
- Specific performance suit
- Cancellation of documents
From the preceding discussion, it is clear that objectives of Court Fee Act and Suit Valuation Acts are different but both are related to each other as well. It is not necessary that the court fee value and the jurisdiction value of the lawsuit should be the same. However, in certain cases the value of the suit for purpose of court fee and the pecuniary jurisdiction can be same.
