Pecuniary Jurisdiction under CPC
Pecuniary Jurisdiction under the Code of Civil Procedure, 1908
Meaning of Pecuniary Jurisdiction:
Pecuniary jurisdiction refers to the monetary limit within which a civil court can entertain and decide suits. It means the jurisdiction of a civil court based on the value or amount of money involved in the suit.
It limits a court’s power to adjudicate cases according to the financial value of the subject matter.
Courts of different levels (e.g., District Court, Subordinate Courts) have limits on the pecuniary value of suits they can entertain.
Provision in CPC:
The CPC itself does not define the pecuniary jurisdiction of courts explicitly.
Pecuniary jurisdiction is generally determined by state laws or rules framed under the CPC, such as the State Civil Courts Act, Court Fees Act, and other local laws.
Section 15 of the CPC confers jurisdiction on the Civil Courts to try all suits of civil nature except where their jurisdiction is barred or excluded by the Constitution, Parliament, or State Legislature.
The Code distinguishes jurisdiction into three types: territorial, pecuniary, and subject-matter jurisdiction.
Importance of Pecuniary Jurisdiction:
It prevents lower courts from hearing cases involving large amounts of money, which may require more experienced judges.
It ensures proper distribution of workload among courts.
It avoids injustice or procedural inefficiency due to wrong court jurisdiction.
Determination of Pecuniary Jurisdiction:
The value of the suit or the subject matter is assessed to determine pecuniary jurisdiction.
The court’s jurisdiction is valid only if the value of the claim falls within its pecuniary limits.
If the suit value exceeds the pecuniary jurisdiction of the court, the suit should be filed in the appropriate court.
Consequences of Lack of Pecuniary Jurisdiction:
If a court tries to entertain a suit beyond its pecuniary jurisdiction, the suit is liable to be dismissed.
The objection regarding pecuniary jurisdiction can be taken at any stage.
The suit can be transferred or dismissed for want of jurisdiction.
The parties may refile the suit in a court having proper pecuniary jurisdiction.
Key Case Laws on Pecuniary Jurisdiction:
1. Brahma Prakash Sharma v. State of Rajasthan, AIR 1955 SC 326
The Supreme Court emphasized that jurisdiction is the power conferred by law to decide a matter.
Without jurisdiction (including pecuniary), any order or decree passed is null and void.
Pecuniary jurisdiction is a condition precedent for entertaining a suit.
2. Shiv Shankar Poddar v. Municipal Corporation of Delhi, AIR 1959 SC 115
The Supreme Court held that the pecuniary limit is mandatory and a suit filed in a court without the required pecuniary jurisdiction is liable to be dismissed.
It highlighted that territorial and pecuniary jurisdiction are fundamental and courts must ensure their jurisdiction before proceeding.
3. T. Arivandandam v. T.V. Satyapal, AIR 1977 SC 2069
Clarified that even if the parties consent to the jurisdiction of the court, lack of pecuniary jurisdiction cannot be waived.
Jurisdiction is a matter of law and cannot be conferred by agreement.
4. K.K Verma v. Union of India, AIR 1965 SC 845
The Supreme Court held that jurisdictional facts must exist at the time of institution of the suit.
If pecuniary jurisdiction does not exist, the suit is not maintainable.
Types of Pecuniary Jurisdiction:
Unlimited Pecuniary Jurisdiction: Some courts (like High Courts) have no pecuniary limit and can entertain suits of any value.
Limited Pecuniary Jurisdiction: Lower courts or district courts have a fixed monetary ceiling (varies by state).
Illustration:
If a District Court has pecuniary jurisdiction up to ₹10 lakhs, and the suit claims ₹12 lakhs, the suit cannot be entertained by that court.
The plaintiff must file the suit in a court having jurisdiction for claims above ₹10 lakhs, e.g., High Court or a court with higher pecuniary limits.
Summary:
| Aspect | Explanation |
|---|---|
| Definition | Jurisdiction of court based on monetary value of suit |
| Determined by | State laws/rules under CPC |
| Purpose | Proper allocation of cases; court competency |
| Violation Consequence | Suit liable to be dismissed or transferred |
| Key Cases | Brahma Prakash Sharma, Shiv Shankar Poddar, T. Arivandandam |
Conclusion:
Pecuniary jurisdiction under the CPC is a vital component of civil court jurisdiction, ensuring suits are filed and tried in courts with appropriate authority over the monetary value involved. The principle safeguards the legal process by allocating cases based on their financial magnitude and maintains judicial efficiency and fairness. Lack of pecuniary jurisdiction renders a suit non-maintainable and void.
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