Case Law Analysis
|Punjab and Haryana High Court
Ad Valorem Court Fee Limited to Earnest Money in Agreement-to-Sell Suits Where Possession Not Transferred | Order VII Rule 11 CPC : Punjab & Haryana HC
The Punjab & Haryana High Court has ruled that in suits seeking declaration of ownership after forfeiture of earnest money under an agreement to sell, the court fee must be calculated only on the earnest money amount, not the full sale consideration, if possession has not been transferred. This clarifies a critical cost threshold for property litigants and prevents disproportionate fee burdens in cases where no transfer of title or possession has occurred.