17. Local limits of jurisdiction of Court.—The local limits of the jurisdiction of each of
the Small Cause Courts shall be the local limits for the time being of the ordinary original civil
jurisdiction of the High Court.
18. Suits in which Court has jurisdiction.—Subject to the exceptions in section 19,
the Small Cause Court shall have jurisdiction to try all suits of a civil nature—
when the amount or value of the subject-matter does not exceed two thousand rupees; and
(a) the cause of action has arisen, either wholly or in part, within the local limits of the
jurisdiction of the Small Cause Court, and the leave of the Court has, for reasons to be recorded
by it in writing, been given before the institution of the suit; or
(b) all the defendants, at the time of the institution of the suit, actually and voluntarily reside,
or carry on business or personally work for gain, within such local limits; or
(c) any of the defendants at the time of the institution of the suit, actually and
voluntarily resides, or carries on business or personally works for gain, within such local
limits, and either the leave of the Court has been given before the institution of the suit, or
the defendants who do not reside, or carry on business, or personally work for gain, as
aforesaid, acquiesce in such institution:
3
[Provided that where the cause of action has arisen wholly within the local limits aforesaid, and the
Court refuses to give leave for the institution of the suit, it shall record in writing its reason for such
refusal.]
Explanation I.—When in any suit the sum claimed is, by a set-off admitted by both parties, reduced to
a balance not exceeding two thousand rupees, the Small Cause Court shall have jurisdiction to try such
suit.
Explanation II.—Where a person has a permanent dwelling at one place and also a lodging at
another place for a temporary purpose only, he shall be deemed to reside at both places in respect of
any cause of action arising at the place where he has such temporary lodging.
Explanation III.—A Corporation or Company shall be deemed to carry on business at its sole
or principal office in 4
[India], or, in respect of any cause of action arising at any place where it
has also a subordinate office, at such place.
1. Subs. by the A.O. 1950, for certain words.
2. Subs. by the A.O. (No. 2) 1956, for “Act of the Legislature of a Part A State or a Part C State”.
3. Added by Act 1 of 1895, s. 7.
4. Subs. by the A.O. (No. 2) 1956, for “a Part A State or a Part C State”.
10
STATE AMENDMENT
Maharashtra
Amendment of section 18 of Act XV of 1882.—In section 18 of the Presidency Small Cause
Court Act, 1882 (XV of 1882), in its application to the State of Maharashtra (hereinafter referred
to as the “Principal Act”) after the first proviso, the following proviso shall be, and shall be
deemed to have been, inserted with effect from the 3rd July 1975, namely:--
“Provided further that the Chief Judge may, subject to the direction and control of the High
Court and to such conditions and limitations as he deems fit to impose, empower the Registrar to
entertain and dispose of applications for the purpose of giving such leave under clauses (a) and
(c) and, when so empowered, the Registrar shall be deemed to be the Court for that purpose.”
[Vide Maharashtra Act XXVI of 1987, s. 2]
1
[18A. Plaintiff may abandon suit against defendant resident out of jurisdiction.—The Small
Cause Court may allow a plaintiff at or before the first hearing of a suit in which a joint and several
liability is alleged on a cause of action arising either wholly or in part within the local limits of the
jurisdiction of the Court to abandon the suit as against any defendant who does not reside or carry on
business or personally work for gain within such local limits, and to sue for a decree against such
defendants only as do so reside, carry on business or personally work for gain.]
19. Suits in which Court has no jurisdiction.—The Small Cause Court shall have no jurisdiction
in—
(a) suits concerning the assessment or collection of the revenue;
2
[(b) suits concerning any act done by or by order of the Central Government, 3*** or the State
Government;]
(c) suits concerning any act ordered or done by any Judge or judicial officer in the execution of his
office, or by any person in pursuance of any judgment or order of any Court or any such Judge or
judicial officer;
(d) suits for the recovery of immovable property;
(e) suits for the partition of immovable property;
(f) suits for the foreclosure or redemption of a mortgage of immovable property;
(g) suits for the determination of any other right to or interest in immovable property;
(h) suits for the specific performance or rescission of contracts;
(i) suits to obtain an injunction;
(j) suits for the cancellation or rectification of instruments;
(k) suits to enforce a trust;
(l) suits for a general average loss and suits on policies of insurance on sea going vessels;
(m) suits for compensation in respect of collisions on the high seas;
(n) suits for compensation for the infringement of a patent, copyright or trade-mark;
(o) suits for a dissolution of partnership or for an account of partnership-transactions;
(p) suits for an account of property and its due administration under the decree of the Court;
(q) suits for compensation for libel, slander, malicious prosecution, adultery or breach of promise
of marriage;
1. Added by Act 1 of 1895, s. 8.
2. Subs. by the A.O. 1937.
3. The words “the Crown Representative” omitted by the A.O. 1950.
11
(r) suits for the restitution of conjugal rights,
1*** or for a divorce;
(s) suits for declaratory decrees;
(t) suits for possession of a hereditary office;
(u) suits against Sovereign Princes or Ruling Chiefs, or against Ambassadors or Envoys of Foreign
States;
(v) suits on any judgment of a High Court;
(w) suits the cognizance whereof by the Small Cause Court is barred by any law for the time being
in force.
2
[19A. Return of plaint.—Whenever the Court finds that for want of jurisdiction it cannot
finally determine the question at issue in the suit, it may at any stage of the proceedings return the
plaint to be presented to a Court having jurisdiction to determine the question. When the Court so
returns a plaint, it shall comply with the provisions of the second paragraph of section 57 of the
3Code of Civil Procedure (14 of 1882) and make such order with respect to costs as it may think
just, and the Court shall for the purposes of the Indian Limitation Act, 1877 (15 of 1877) be
deemed to have been unable to entertain the suit by reason of defect of jurisdiction. When a plaint
so returned is afterwards presented to a High Court, credit shall be given to the plaintiff for the
amount of the court-fee paid in the Small Cause Court in respect of the plaint in the levy of any
fees which according to the practice of the High Court are credited to the Government.]
20. Court may by consent try suits beyond pecuniary limits of jurisdiction.—When the
parties to a suit, which, if the amount or value of the subject-matter thereof did not exceed two
thousand rupees, would be cognizable by the Small Cause Court, have entered into an agreement in
writing that the Small Cause Court shall have jurisdiction to try such suit, the Court shall have
jurisdiction to try the same, although the amount or value of the subject-matter thereof may exceed
two thousand rupees.
Every such agreement shall be filed in the Small Cause Court, and, when so filed, the parties to
it shall be subject to the jurisdiction of the Court, and shall be bound by its decision in such suit.
21. Suits by and against officers of Court.—All suits to which an officer of the Small Cause
Court is, as such, a party, except suits in respect of property taken in execution of its process,
or the proceeds or value thereof 4
[and all suits whereof the amount or value of the subjectmatter exceeds one thousand rupees] may be instituted in the High Court at the election of the
plaintiff as if this Act had not been passed.
22. Costs when plaintiff sues in High Court in other cases cognizable by Small Cause
Court.—If any suit cognizable by the Small Cause Court other than a suit to which section 21
applies, is instituted in the High Court, and if in such suit the plaintiff obtains, in the case of a
suit founded on contract, a decree for any matter of an amount or value less than 5
[one
thousand] rupees, and in the case of any other suit a decree for any matter of an amount or
value of less than three hundred rupees, no costs shall be allowed to the plaintiff;
and if in any such suit the plaintiff does not obtain a decree, the defendant shall be entitled to his costs
as between attorney and client.
The foregoing rules shall not apply to any suit in which the Judge who tries the same certifies that it
was one fit to be brought in the High Court.