#ad valorem court fee

The Madhya Pradesh High Court has ruled that the state amendment to the Court Fees Act imposes a hard cap of Rs. 1,50,000 on court fees for all civil suits, regardless of claim value - including high-value specific performance cases. This removes the burden of ad-valorem fees on litigants in high-stakes contract disputes and standardizes litigation costs across the state.

Madhya Pradesh High Court rules that plaintiffs challenging forged sale deeds-while denying their execution-need not pay ad-valorem court fees based on deed value. The judgment clarifies that fixed fees under Article 17(iii) suffice, easing financial burdens in property disputes involving forgery allegations.

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.

The Punjab & Haryana High Court ruled that a suit seeking only a declaration of invalidity of a sale deed-without any prayer for possession-does not attract ad valorem court fees. The decision reinforces that procedural compliance under Order VII Rule 11 CPC must align with the nature of relief sought, impacting plaintiffs and defendants in property disputes.