Section 12 of Court Fees Act 1870 - Decision of Questions as to Valuation
Section 12 deals with who decides a dispute about valuation when that valuation determines the court fee payable on a plaint or memorandum of appeal. It also provides a mechanism for correction when an appellate, reference or revisional court finds that the valuation question was wrongly decided to the detriment of revenue.
In brief: the court in which the plaint or memorandum of appeal is filed decides the valuation question for court-fee purposes. The decision is final between the parties, but an appellate, reference or revisional court may require payment of additional court fee where the earlier decision caused loss of revenue.
Meaning and Scope of Section 12
The expression valuation in this context means the value attributed to the subject matter for determining the amount of court fee chargeable under the relevant provisions of the Court-Fees Act. Section 12 concerns the determination of that court-fee valuation and the consequences of an erroneous determination.
The provision should be read with the applicable court-fee law and State amendments in force in the State or Union Territory concerned. Court-fee legislation has been amended or replaced in several States, so the locally applicable enactment and amendment must be checked before relying on the central text.
Text of Section 12 - Court-Fees Act, 1870
(i) Every question relating to valuation for the purpose of determining the amount of any fee chargeable under this Chapter on a plaint or memorandum of appeal shall be decided by the Court in which such plaint or memorandum, as the case may be, is filed, and such decision shall be final as between the parties to the suit.
(ii) Whenever such suit comes before a Court of appeal, reference or revision, if that Court considers that the question has been wrongly decided to the detriment of the revenue, it shall require the party by whom the fee has been paid to pay the additional fee that would have been payable had the question been rightly decided, and the applicable consequence under Section 10 follows.
How Section 12 Operates
1. Initial decision by the court where the proceeding is filed
The court receiving the plaint or memorandum of appeal determines a question of valuation insofar as that question affects the court fee payable. The statutory purpose is to permit the filing court to settle the court-fee valuation issue at the relevant stage of the proceeding.
2. Finality between the parties
Sub-section (i) states that the valuation decision is final as between the parties to the suit. This finality is specifically expressed in relation to the parties and must be understood together with sub-section (ii), which preserves scrutiny at the appellate, reference or revisional stage where revenue has been prejudiced.
3. Correction where revenue is prejudiced
If the matter reaches a court of appeal, reference or revision and that court considers the earlier valuation decision wrong to the detriment of revenue, Section 12(ii) authorises recovery of the additional court fee that ought to have been paid.
Odisha State Amendment to Section 12
The uploaded page records the amendment originally described as the Orissa amendment under Orissa Act 5 of 1939, Section 13. The official 1939 Gazette text substitutes paragraph (ii) and deals expressly with deficient court fee as well as refund where excess fee has been levied.
Under the substituted paragraph (ii), when a suit comes before a court of appeal, reference or revision and the court considers that the valuation question was wrongly decided:
- If the decision is detrimental to revenue, the party who paid the fee may be required to pay the additional amount that would have been payable on a correct decision.
- If that party is the appellant or petitioner, the appeal or petition may be stayed until the additional fee is paid, and may be dismissed if payment is not made within the time fixed by the court.
- If the liable party is the respondent or opposite party, the court may fix a date for payment and, on default, the amount may be recovered as an arrear of land revenue.
- If excess court fee was levied, the court may direct refund of the excess amount that would not have been payable had the valuation question been correctly decided.
Explanation: for the purpose of the Odisha amendment, a question relating to classification of a suit with reference to Section 7 is not treated as a question relating to valuation.
Official Legal Sources
For authoritative verification, consult the official text of the Court-Fees Act, 1870 on India Code and, for the Odisha amendment reproduced above, the official Odisha Law Department Gazette publication.
Page reviewed and redrafted: 22 September 2026.