Valuation for the purpose of court fees determines both the fee payable and, in many cases, the forum before which the suit lies. For a suit for money, the plaintiff declares the amount claimed, and ad valorem fee follows that amount. For a suit for possession of land or for a declaration coupled with consequential relief, valuation may be based on the market value or the value fixed under special provisions of the civil procedural rules.
The plaint itself contains the plaintiff's valuation, but the defendant or the court can question whether it is arbitrary, collusive, or not in good faith. The Civil Court has power to examine the valuation, and where the plaintiff undervalues a claim simply to bring it within the pecuniary jurisdiction of a lower court or to pay lesser fee, the court may require the true value to be disclosed and the deficit fee to be paid.
Under the provisions of the Court Fees Act and the Civil Procedure Code, the issue of valuation is decided by the court and such a decision is generally considered final against the plaintiff. It is prudent, therefore, to be realistic about value from the outset. An inflated claim increases fee liability unnecessarily, while a deliberate undervaluation risks rejection and wasted costs, so the valuation should be defensible and supported by the relief sought.