2010 (10) TMI 1223 - HC - Indian Laws

Summary

Issues Involved:
1. Whether the Plaintiff is required to pay ad valorem Court fee on the sale consideration shown in the sale deed.
2. Whether the sale deed is null and void due to non-payment of the full sale consideration.
3. Whether the Plaintiff's suit for declaration is maintainable without seeking cancellation of the sale deed.

Summary:

Issue 1: Ad Valorem Court Fee Requirement
The Plaintiff challenged the order directing the payment of ad valorem Court fee on the sale consideration shown in the sale deed. The trial court observed that since the Plaintiff is a party to the sale deed and received part of the sale consideration, he is required to pay ad valorem Court fee. The High Court upheld this view, stating that the Plaintiff is seeking relief of annulment of the sale deed in the garb of a declaration and thus must pay ad valorem Court fee.

Issue 2: Validity of Sale Deed Due to Non-Payment
The Plaintiff argued that the sale deed is null and void as the full sale consideration was not paid, citing Section 25 of the Indian Contract Act. The Defendant contended that the sale deed is not void even if part of the sale price is unpaid, referencing the judgments in Kaliaperumal v. Rajagopal and Vidhyadhar v. Mankikrao. The High Court agreed with the Defendant, noting that the sale deed did not contain any recital that it would be revoked upon dishonour of cheques. Thus, the sale transaction was deemed complete, and the sale deed was not void.

Issue 3: Maintainability of Suit for Declaration
The Plaintiff sought a declaration that the sale deed is null and void without seeking its cancellation. The High Court held that if the executant of a deed wants it annulled, they must seek cancellation. Since the Plaintiff's real relief was the annulment of the sale deed due to fraud and non-payment, the suit for declaration alone was not maintainable. The Plaintiff must pay ad valorem Court fee as the relief sought was essentially for cancellation of the sale deed.

Conclusion:
The High Court dismissed the petitions, affirming the trial court's order that the Plaintiff must pay ad valorem Court fee on the sale consideration shown in the sale deed. The sale deed was not void due to non-payment of the full consideration, and the Plaintiff's suit for declaration without seeking cancellation was not maintainable.