Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1951 under section 31 and 32 State Financial Corporations Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Bombay Court Fees Act, 1959 (36 of 1959) State Financial Corporations Act, 1951 (63 of 1951) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | State Financial Corporations Act (Act LXIII), 1951 - Nature of proceedings under Sections 31 and 32 - Court Fee payable on an application that may be made under Section 31(1) of the Act - Whether governed by Article 1 or 7 of Schedule I or by Article 1(c) of Schedule II of Bombay Court Fees Act, 1959. The appellant Corporation, which grants or guarantees the loan to be raised by industrial concerns either from the scheduled banks or state Cooperative Banks or those floated in public market, is entitled to make, for one or more of the reliefs set out in Section 31(1) of the State Financial Corporation Act, an application to the District Judge within the limits of whose jurisdiction the industrial concern carries on the whole or substantial part of its business, when any such concern defaults in repayment of loan or fails to comply with the terms of the agreement. The Corporation made several applications purporting to be under Section 31(1) of the Act in various district courts in the State of Gujarat. A question was raised in the District Courts about the proper court fee payable on such applications. The Corporation contended that the application would be governed by Article l(c) of Schedule II of the Bombay Court Fees Act, 1959 and a fixed court fee in the amount of 65 paise would be payable in respect of the application. But the. State contended that the application would be governed either by Article 1 of Schedule I or at any rate Article 7 of Schedule I and the court fee payable would be ad-valorem on the amount of value of the subject matter in dispute or on the amount of the monetary gain or loss to be prevented according to the scales prescribed under Article 1 of Schedule I. All the district courts except Broach accepted the contention of the State; but the Broach district court opined that the application under Section 31(1) was in the nature of an execution application and it would be governed by Article I (c) of Schedule II. Both the Corporation and State of Gujarat went in revision before the High Court. The High Court by a common judgment held that an application under Section 31(1) should bear an ad valorem court fee. In reaching this conclusion, the High Court treated the application under Section 31 (1) of the Act on par with a suit by a mortgagee to enforce the mortgage debt by sale of the mortgaged property which is being treated as a money suit falling within the purview of Article 1 of Schedule I. Alternatively, it was held that even if the application under Section 31(1) is not a plaint within the meaning of Article I of Schedule I it would fall within the purview of Article 7 of Schedule I. |
Judge | Hon'ble Mr. Justice D.A. Desai |
Neutral Citation | 1978 INSC 146 |
Petitioner | Gujarat State Financial Corporation |
Respondent | M/s. Natson Manufacturing Co. (p) Ltd. & Ors. |
SCR | [1979] 1 S.C.R. 372 |
Judgement Date | 1978-08-29 |
Case Number | 1553 |
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