Polamrasetti Manikyam and Another v. Teegala Venkata Ramayya and Another
Background
Plaintiffs in Andhra Pradesh sought cancellation of a sale deed they alleged was fraudulently obtained. They valued the suit using the one lakh rupees stated in the deed. The appellate court and High Court instead required valuation by the property's current market value for court fees and jurisdiction.
Decision Breakdown
The Supreme Court allowed the appeals and directed the trial court to proceed under the correct valuation rule. Section 37 provided a special rule for cancellation suits that used the value for which the disputed document was executed. Its text did not say current market value, unlike provisions governing other kinds of suits. The contrary High Court approach was therefore rejected, without deciding whether the alleged fraud or cancellation claim would ultimately succeed.
Lesson Learnt
The court fee for this kind of cancellation suit follows the amount in the challenged deed under the relevant Andhra Pradesh provision. Litigants should identify the rule for their particular relief instead of assuming every property case uses current market value.