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AN ASSIGNMENT

ON
THE SOLUTIONS OF BJSC QUESTIONS

COURSE TITLE: COURT FEES, SUIT VALUATION & STAMP ACT

DATE OF SUBMISSION: 1 SEP 2016

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CONTENT

TITLE PAGE NO.

Solution of question no. 1 of the 5-7


BJSC exam 2014

Solution of question no. 2 of the 8


BJSC exam 2014

Bibliography 9

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Preface

Determination of court fee is one of the important factors of the legal world. You can’t file a
single suit without paying the court fees. In our course of court fees Act we have learned lots of
things for the determination of court fees and also the book of our dearest course teacher helped
us very much to make the assignment. So specially I want to give thanks to my honorable course
teacher for giving us such an assignment and helped us by his book.

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1. A) What are the distinction between fixed court fees and ad valorem court fees?
B) “Section 7 of the Court fees Act contemplates three modes of valuation of the subject
matter of a suit”. Discuss with the illustration of those 3 types of valuation with reference
to the relevant provisions of law.

Answer to the question no. 1(A)

According to section 7 and the first and second schedule of the Court Fees Act, court fee is
determined by mainly two ways:

•when the court fees has to be paid accoding to


1) Ad valorem court the value of the subject matter that is known
fees as the Ad valorem court fees.

•when the court fee is to be paid according to


the prescribed amount fixed by the
2) Fixed court fees government, is called fixed court fees.

However the differences between the ad valorem and fixed court fee is discussing below:

Ad valorem Court fee Fixed Court fee

It has been enumerated in the first schedule. It has been enumerated in the second
schedule.

Highest ad valorem fee is 50000 tk. Highest fixed court fee is 1000 tk.

Lowest ad valorem court fee is 200 tk. Lowest fixed court fee is 5 tk.

To determine this, valuation of the suit is an To determine this valuation of suit is not
important factor. necessary.

Variation of rate is applicable Variation of rate is not applicable.

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Answer to the question no. 1(B)
Section & of the Court Fees Act contemplates three modes of valuation of the subject matter of a
suit:

1. By valuing it according to its market value (iii,ivd,,etc).


2. By ascribing to the subject matter an artificial value based simply on certain fixed rules
of calculation (v)
3. By requiring the plaintiff himself to value the relief he seeks.

The detail about this is discussing below:

By valuing it according to its market value:


Section 7(iii,ivd,ive,etc) has discussed about the valuating system of court fees according to the
market value. So the abovementioned sections are discussing below:

Section 7(iii) : For movable property having a market value_ This section is applicable upon
all types of movable property except money.

How computed: According to the market value at the time of presenting the plaint.

Example: cost of acquisition of an movable property is 200000 and the market value of that
property is 220000. So the court fees shall be determined according to the amount of 220000
which is the market value.

Section 7(ivd): If any suit come for the right of injunction than such a case may be dealt by
considering the court fee under this section.

In the case of AIR 1955 Mys 65(FB), AIR 1952 Mad 41 it was held that, suit for
mere injunction without declaration, section 7 iv applies.

However if any such case come than for that reason it will calculated by the market value.

Section 7(ive): For establishing any easement right court fees has to determine under this
section which shall be valuated according to the market value.

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By ascribing to the subject matter an artificial value based simply on certain
fixed rules of calculation:

Section 7(v): For possession of land, building or garden: if any suit come regarding the
followed subject matter than the court fees for such a suit shall be computed according to the
subject matter and it differ in the circumstance.

 Normally the court fees shall be determined according to 15 times the net profit during
the years next before the date of presenting the plaint.
 If the court sees reason to think that the profit was wrongly estimated than the court fees
will be 15 times of the amount as the net profit assessed by the court or according to the
market value whichever is higher.

By requiring the plaintiff himself to value the relief he seeks:

Section 7(iv): For movable property having no market value- for such a case the court fees
shall be determined according to the amount at which the relief sought.

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2)When a court is to give the finding that a sufficient court fee has been paid? What stapes are to
be taken by the court in case of insufficient court fee? What are the consequences of non-
payment of deficit court fees?

Answer to the question no. 2


According to section 8B of the Court Fees Act,1870 the court shall record a finding-

 On the date fixed for the appearance of the opposite party


 As soon as possible
 Before proceeding to deliver judgment

Steps are to be taken:


When the court find that insufficient court fees has been paid, the court shall-

a) Stay all further proceeding until


 Determination of proper amount of court fee payable
 The plaintiff or appellant has paid such amount
 The date referred to in clause (b)

Provided that the court may proceed with the proceedings if the plaintiff or appellant gives
security for the payment of additional amount within the allowed time.

b) Fix a date for payment of court fee due to him.

Consequence of non-payment of deficit court fee:


The court shall dismiss the suit if-

 Plaintiff or appellant fails to give the security under clause (a)


 Plaintiff or appellant fails to pay the amount under clause (b) within the time allowed or
before the date fixed by the court.

Case references:
8DLR (HC) 100: the court has a right to correct valuation if a wrong valuation is put on the
plaint.

21 DLR (HC) 507: the court is competent to enter into the matter of court fees after appearance
of the parties and framing of issues.

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BIBLIOGRAPHY

Handbook of Court Fees, Suit Valuation And Stamp Act


By Mehedi Hassan

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