Suit Valuation for the Purpose of Jurisdiction is Different from its Valuation for Fiscal Purpose of court fee
Court fee Act is instrument for the purpose of collection of revenue for state & suit valuation act fixes value of suit for the purpose of jurisdiction. It is not necessary that both should be same.
Suit Valuation: Generally the value of subject matter of the suit is called the value of suit or suit value.
Object of Suit Valuation: The objects of suit valuation act are as under;
To determine the jurisdiction of court in certain suits.
In order to attain the objective, the act prescribes mode of valuing.
From reading of the preamble, it is evident that the ibid act intention is to determine the value of all types of suits whereby the plaintiff may determine proper forum for adjudication upon his case. After adjudication the hierarchy of courts & their pecuniary jurisdiction, specified in law, it becomes easier to ascertain which court can hear cases involving what amount or value of subject matter.
Meaning of Fiscal Enactment: Fiscal enactment is such a law which has the primary purpose is collection of revenue of govt.
Court Fee is a form of Taxation: The object of the act is to lay down rules for collection of one form of taxation & this is regard to be the-scop of enactment.
Objects of Court Fees: objects of court fee are as under:
Revenue Collection: The main object is to secure & collect revenue for the benefit of state.
Regulate & Ascertainment of Court fee: Another object of Court fee is to regulate, ascertain and recover amount from litigants.
Multiplicity of suits: Its object imposition of certain amount of court fee. It curtain unnecessary litigations & also controls the multiplicity of suits.
Interpretation of court fee: interpretation of court fee are as under:
A fiscal statute like court fees Act must be strictly followed.
In case of doubt, Court Fee Act should be construed in favor of state.
If two constructions are equally possible or reasonable, the construction most favorable to subject must be enforced.
Difference between valuation for Jurisdiction & for Court Fees: main object of Court Fee Act is to determine the court fee while the purpose of Suit Valuation Act is to determine the court jurisdiction.
Valuation for the purposes of court fee should be determined first & for that purposes of jurisdiction must follow on the same.
Explanation: The Suit Valuation Act and Court Fee Act are not same; former determines jurisdiction while the later determines fees for court.
The Suit Valuation A depends on value of subject matter and Court Fee Act on the certain value fixed by statutory rules.
So from the above few points, it is evident that SVA and CFA are two different acts, with determining different things i.e. court fees & Jurisdiction.
Valuation for the Purpose of Court Fee and Jurisdiction is same
It is instrument for the purpose of collection of revenue for state, & suit valuation Act fixes the value of suit for the purposes of jurisdiction. It is not necessary that court fee value & the jurisdiction value should be the same. Section 8 of the Suit Valuation Act 1887 enumerates certain cases where valuation of suit for the purpose of jurisdiction & for the purpose of court fee would be same.
Meaning of Jurisdiction: The term refers to the authority of court to administer justice in accordance with rules prescribed by law within limits set by law.
Provisions: Section 8 and 9 of Suit Valuation Act, 1887.