Om Prakash Agarwal Since Deceased Thr. Lrs. & Ors. v. Vishan Dayal Rajpoot & Anr.
ASHOK BHUSHAN, J. 1. These appeals have been filed by
the appellant (landlord), questioning the judgment of Allahabad High Court
in Small Causes Court Revision filed by the respond ents(tenant)
challenging the decree of eviction passed by Additional District Judge,
Firozabad. The issue which has arisen in these appeals pert ains to the
jurisdiction of Court of Additional District Judge in deciding Small Causes
Suit on 22.10.2016.
2. The facts necessary to be noticed for deciding these appea ls
are:-
The appellant, the landlord of premises in question filed S mall
Causes Suit No. 1 of 2008 in the Court of Civil Judge (Senior
Division), Small Cause Court, Firozabad praying for decree of
eviction, rent and damages. By order dated 05.04.2010 passed by
Additional District Judge, the suit was transferred to the Court of
District Judge, Firozabad and was registered as S.C.C. Suit No. 1
of 2010. The pecuniary jurisdiction of a Judge, Small Cause Court,
which at the time of filing of the suit was Rs.25,000/- was raised
from Rs.25,000/- to Rs. 1 lakh w.e.f. 07.12.2005 vide Uttar Pradesh
Civil Laws (Amendment) Act, 2015. The Additional District Judge
to whom the suit was transferred earlier on the groun d that
pecuniary jurisdiction of the suit is more than Rs.25,000/- i.e.
Rs.27,775/-, proceeded to decide the suit vide its judgment and
order dated 22.10.2016 and the suit for eviction, r ent and
compensation was decreed. Aggrieved against the judgment of
Addl. District Judge, revision under Section 25 of the Provincial
Small Cause Courts Act, 1887 was filed by the tenant (respondents
to this appeal). One of the grounds taken in the revision was that
after enactment of Uttar Pradesh Civil Laws (Amendment) Act,
2015, the Court of Additional District Judge ceased to have any
jurisdiction to try the suit between lessor and lessee of a value
upto Rs. 1 lakh. The assumption subsequent thereto of the
jurisdiction by the Additional District Judge is without jurisdiction.
Some other grounds were also taken for challenging the
judgment dated 22.10.2016. The High Court vide its impugned
judgment dated 07.12.2016 allowed the Small Cause Court revision
taking a view that order passed by Additional District Judge was
57
without jurisdiction in view of Uttar Pradesh Civil Laws
(Amendment) Act, 2015 w.e.f. 07.12.2015, after which date, such
case of valuation of Rs.27,775/- could have been decided by Civil
Judge (Senior Division) working as Judge Small Causes Court.
The High Court relied on the earlier judgment of High Court i n
SCC Revision No. 278 of 2016 – Shobhit Nigam Vs. Smt.
Batulan and another decided on 29.08.2016. The High Court
remanded back the Revision for a fresh decision by Small Causes
Court presided over by a Civil Judge (Senior Division). The landlord
aggrieved by said judgment has come up in this appeal.
3. Shri A.K. Singla, learned senior counsel appearing for the
appellant contended that High Court committed an error in allowing the
Revision. It is submitted that Uttar Pradesh Civil Laws ( Amendment)
Act, 2015 w.e.f. 07.12.2015 has only enhanced the jurisdicti on for
institution of small causes suit, which amendment shall have no effect
on the pending cases. In the Uttar Pradesh Civil Laws (Ame ndment)
Act, 2015, there was no stipulation that pending cases of having valuation
of more than Rs.25,000/- before the Court of District Judge should b e
transferred. He submits that no objection to the pecuniary jurisdiction of
Additional District Judge was taken by the respondents before the
Additional District Judge, hence by virtue of Section 21 of the Civil
Procedure Code, they were estopped from taking any such objection in
the Revision.
4. Shri S.U. Khan, learned counsel appearing for the respondents
refuting the submission of the appellant contends that the Uttar Pradesh
Civil Laws (Amendment) Act, 2015 w.e.f. 07.12.2015, uses the word
“cognizance”. If a suit is cognizable by a Court then the Court has got
the jurisdiction not only to receive the plaint but also to decide the suit.
After the amendment by Uttar Pradesh Civil Laws (Amendment) Act,
2015, the Court of Additional District Judge was not only debarred from
receiving plaints but was also not competent to decide Small Causes
Suit, which has valuation upto Rs. 1 lakh. To the view taken by the High
Court in Shobhit Nigam ’s case (supra) , there is a contrary view taken
by the High Court in Pankaj Hotel Vs. Bal Mukund, (2018) 1 ALJ
2017. The principles and objections of pecuniary jurisdic tion as
contemplated in Section 21(2) is not attracted in the prese nt case. In
Shobhit Nigam ’s case (supra) High Court had issued a general direction
for transferring of Regular Judge Small Causes Court Suits upto valuation
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
of Rs. 1 lakh to the Civil Judge (Senior Division). He submits that special
leave petition deserves to be dismissed.
5. From the above submissions of learned counsel for the parties
and the pleadings on record, following are the issues, which arise for
consideration in this appeal:
i. Whether the Uttar Pradesh Civil Laws (Amendment) Ac t,
2015 is only prospective in nature and confined only to the
fresh institution of suits in the Court of Civil Judge (Senior
Division) w.e.f. 07.12.2015 upto valuation of Rs. 1 lakh and
shall not affect the cognizance/hearing of pending suits upto
the valuation of Rs. 1 lakh pending in the Court of District
Judge/Additional District Judge?
ii. Whether the Court of District Judge/Additional District Judge,
which Court was vested with the jurisdiction of Small Causes
suit of the valuation of more than Rs.25,000/- w.e.f. 08.02.1991
shall cease to have or could have still exercised the pecuniary
jurisdiction on the Small Causes Suits of Valuation upto Rs. 1
lakh?
iii. Whether respondents (tenants) having not raised any objection
regarding jurisdiction of the Court of Additional District Judge
where the suit was pending after amendments made by Uttar
Pradesh Civil Laws (Amendment) Act, 2015, the respondent
(tenant) is precluded to question the competence of the Court
of Additional District Judge to decide the suit vide his judgment
dated 22.10.2016 in view of Section 21 of Code of Civil
Procedure, 1908 in revision filed under Section 25 of the
Provincial Small Causes Court Act?
6. Before we proceed to consider the issues, which has arisen for
consideration in this appeal, it is useful to refer the r elevant statutory
provisions relevant for the subject.
7. Two enactments namely (i) The Bengal, Agra, Assam Civil
Courts Act, 1887 and (ii) The Provincial Small Causes Courts Act, 1887,
were passed with regard to constitution, jurisdiction of Civil Courts in
the then North-Western Provinces both being enforced w.e.f. 01.07.1887.
The Bengal, Agra and Assam Civil Courts Act, 1887 was enacte d to
consolidate and amend the law relating to Civil Courts in Benga l, the
59
North-Western Provinces and Assam. Section 3 of the Act provides for
Constitution of Civil Courts. Section 4 relates to number of Di strict
Judges, Subordinate Judges and Munsifs. Section 17 dealt with
continuance of proceeding of Courts ceasing to have jurisdiction. Section
18 dealt with extent of original jurisdiction of District o r Subordinate
Judge (for the State of Uttar Pradesh, the word “Subordina te” was
substituted with the word “Civil”). Section 19 dealt wi th extent of
jurisdiction of Munsif. Section 19 as applicable in the Stat e of Uttar
Pradesh was substituted by U.P. Act No. 17 of 1991 was to the following
effect:-
“19(1) Save as aforesaid, and subject to the provisions of sub-
section(2), the jurisdiction of a Munsif extends to all like suits of
which the value does not exceed ten thousand rupees.
(2) The High Court may direct by notification in the official Gazette,
with respect to any munsif named therein, that his jurisdicti on
shall exceed to all like suits of such value not exceeding twenty
five thousand rupees as may be specified in the notification.”
8. Section 25 deals with power to invest Subordinate Judges and
Munsifs with Small Cause Court Jurisdiction. Section 25 of the Act as
applicable in the State of Uttar Pradesh is as follows: -
“[25.[1] The High Court may by notification in the of ficial
Gazette, confer within such local limits as it thinks fit, upon
any Civil Judge or Munsif, the jurisdiction of a Jud ge of a
Court of Small Causes under the Provincial Small Ca use
Courts Act, 1887 for the trial of suits cognizable by such
Courts up to such value not exceeding five thousand rupees
as it thinks fit, and may withdraw any jurisdiction so
conferred:
Provided that in relation to suits of the nature referre d to
in the proviso to sub-section (2) of Section 15 of the said
Act, the reference in this sub-section to five thousand rupees
shall be construed as reference to twenty-five thou sand
rupees.]
[(2) The High Court may, by notification in the Off icial
Gazette, confer upon any District Judge or Additional Dist rict
Judge the jurisdiction of a Judge of a Court of Small Cause s
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
under the Provincial Small Cause Courts Act, 1887, fo r the
trial of all suits(irrespective of their value), by the lessor for
the eviction of a lessee from a building after the determ ination
of his lease, or for the recovery from him of rent in re spect of
the period of occupation thereof during the continu ance of
the lease or of compensation for the use and occupa tion
thereof during the continuance of the lease or of compensati on
for the use and occupation thereof after such determi nation
of lease, and may withdraw any jurisdiction so confer red.
Explanation – For the purposes of this sub-section, the
expression ‘building’ has the same meaning as in Arti cle (4)
in the Second Schedule of the said Act.]
[(3)]x x x ]
[(4) Where the jurisdiction of a Judge of a Court o f Small
Causes is conferred upon any District Judge of Addi tional
District Judge by notification under section, then,
notwithstanding anything contained in section 15 of the
Provincial Small Cause Courts Act, 1887, all suits referre d to
in sub-section (2) shall be cognizable by Court of Small
Causes.]”
9. The Provincial Small Cause Courts Act, 1887 was enacted to
consolidate and amend the law relating to courts of small causes
established beyond the Presidency town. AS the name suggest s, the
Provincial Small Cause Courts Act 1887 was enacted to deal with “Small
Causes”. The Object of the Act was to create a separ ate court for
dealing with small causes. The object obviously was that small causes
may be dealt with expeditiously. A summary procedure was also
envisaged for dealing with small causes. The Presidency Small Cause
Courts Act, 1882 was already in place in Calcutta, Bombay and Madras.
In this country, before the Provincial Small Cause Courts Act 1887 was
enacted, there were different legislations applicable i n different areas
with the same object, i.e., to deal with cases of small causes effectively
and summarily. The Statement of Objects and Reasons of Provinci al
Small Cause Courts Act 1887 was to the following effect:-
“The suits cognizable in Courts of Small Causes are subjec t to
certain provisos, described in Section 6, Act XI of 1865, as “claims
for money due on bond or other contract, or for rent, or for personal
61
property, or for the value of such property, or for damages, when
the debt, damage or demand does not exceed in amount or value
the sum of five hundred rupees whether on balance of account or
otherwise” and Sec. 586 of the Code of Civil Procedure provides
that “no second appeal shall lie in any suit of the nature cognizable
in Courts of Small Causes, when the amount or value of the
subject-matter of the original suit does not exceed five hundr ed
rupees”. Since Section 6 of the Act of 1865 was enacted, a v ast
quantity of case-law has grown up around it, and, as the rulings of
the Courts have not been uniform, doubts constantly arise on the
question whether a suit is or is not a suit of the nature cognizable
by a Court of Small Causes, and, consequently, whether or not,
where the suit is of value not exceeding five hundred rupees and
the original decree made in it was not final but was open to appeal,
an appeal will also lie from the appellate decree in t he suit. It
appears to the Government of India that the conflic ting
constructions placed on Section 6, of which some are due to the
progress of legislation during the last twenty years (ILR 3 All 66),
render a more accurate definition necessary of the suits of which
Courts of Small Causes may take cognizance, and that legislation
to this end should follow Sections 18 and 19 of the Presidency
Small Cause Courts Act, 1882, in declaring the jurisdiction of those
Courts to extend to all suits of a civil nature, subject to specified
exceptions. This Bill has accordingly been prepared, its primary
object being to remove the doubts now felt as to the effec t of
Section 6, Act XI of 1865; and, as several sections and part s of
sections of that Act have, from time to time, been repeale d and
other sections are obsolete as regards both expression and utility,
it has been considered desirable to repeal the Act and r e-enact
the substance of the extant portions of it……….” — Gazette of
India, 1886, Part V, page 8.”
10. Black’s Law Dictionary has referred to “Small Claims Court”,
which explained it in following manner:-
“A court that informally and expeditiously adjudicates claims that
seek damages below a specified monetary amount, usu. claims to
collect small accounts or debts.— Also termed small-debts court;
conciliation court.”
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
11. The object as is delineated from Statements of Objects of
enactment was to provide for speedy machinery for smal l claims.
Although, Code of Civil Procedure is applicable by virtue of Section 17
of Small Causes Courts Act, but the Code of Civil Procedure itself in
Order L provides a simplified procedure excluding various rule s and
orders of the C.P.C. for small causes cases. Order L of the C.P.C. is as
follows:-
“1. Provincial Small Cause Courts - The provisions hereinafter
specified shall not extend to Courts constituted under the Provincial
Small Cause Courts Act, 1887 (9 of 1887)[or under the Berar
Small Cause Courts Law, 1905] or to Courts exercisin g the
jurisdiction of a Court of Small Causes[under the said Ac t or
Law],[or to Courts in[any part of India to which the said Ac t
does not extend] exercising a corresponding jurisdiction] that is to
say-
(a) so much of this Schedule as relates to-
(i) suits excepted from the cognizance of a Court of Small
Causes or the execution of decrees in such suits;
(ii) the execution of decrees against immovable property or the
interest of a partner in partnership property;
(iii) the settlement of issues; and
(b) the following rules and orders:-
Order II, rule 1 (frame of suit);
Order X, rule 3 (record of examination of parties);
Order XV, except so much of rule 4 as provides for the
pronouncement at once of judgement;
Order XVIII, rules 5 to 12 (evidence);
Orders XLI to XLV (appeals);
Order XLVII, rules 2, 3, 5, 6, 7 (review);
Order LI.”
12. Section 5 provided for establishment of small causes court s
by the State Government. Chapter III of the Act deals with “Jurisdiction
of Courts of Small Causes”. Section 15 of the Act provides: -
63
15. Cognizance of suits by Courts of Small Causes-(1) A Court
of Small Causes shall not take cognizance of the suits specif ied
in the Second Schedule as suits expected from the cognizance
of a Court of Small Causes.
(2) Subject to the exceptions specified in that Sched ule and
to the provisions of any enactment for the time being in for ce,
all suits of a civil nature of which the value does not ex ceed
five hundred rupees shall be cognizable by a Court of Sm all
Causes.
(3) Subject as aforesaid, the [State Government] may, by or der
in writing, direct that all suits of a civil nature of wh ich the
value does not exceed one thousand rupees shall be
cognizable by a Court of Small Causes mentioned in the
order.”
13. The Uttar Pradesh Civil Laws (Amendment) Act, 1972 (U.P.
Act No. 37 of 1972) was enacted by Uttar Pradesh Legislature with the
Presidential assent. The Statement of Objects and Reasons of U.P. Act
No. 37 of 1972, which are relevant for understanding the Scheme and
purpose of the amendment are to the following effect:-
“Prefatory Note—Statement of Objects and Reasons .—(1)
The Provincial Small Cause Courts Act, 1887, provides for a
summary procedure in the trial of suits. Moreover, the decisions
of such courts are not appealable, and only one revision is provided.
However such courts cannot take cognizance of suits for
possession of immovable property. By a recent amend ment
contained in Section 20(6) of the U.P. Urban Buildings (Regulation
of Letting, Rent and Eviction) Act, 1972 (U. P. Act XIII of 1972),
eviction suits against the tenant after the expiration of his tenancy
have been taken out from the purview of this exception and have
been made cognizable by the small cause courts. This has been
done because in such suits the issues are usually simple. In cases
where the question of title comes to be in issue, a small c ause
court has power to return the plaint for presentation to a regular
court. It is now proposed to delete the aforesaid amendment from
U. P. Act XIII OF 1972, and instead, to incorporate a wider
amendment directly in the Provincial Small Causes Court Act ,
1887, so that all buildings, and not merely those buildings which
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
are governed by U. P. Act XIII of 1972, may be covered thereby.
It is further proposed that in respect of such suits the ordi nary
small cause courts may be conferred jurisdiction to decide cases
of a value up to Rs. 5,000 (instead of only Rs. 2,000 in some
districts and Rs.1,000 in most districts, as at present) and tha t
cases of a higher value may be decided by District Judges sitting
as Judges of Small Causes, and revisions against such decisions
of District Judge shall lie to the High Court, while revision against
decisions of other Courts of Small Causes may continue to lie to
the District Judge.
xxxxxxxxxxxxxxxxxxxxxxxxxxxx”
14. As per Section 15(1), a Court of Small Causes wa s not
competent to take cognizance of the suits specified i n the Second
Schedule. Clause (4) of the Second Schedule of the Act was to the
following effect:-
“(4) a suit for the possession of immoveable property or for t he
recovery of an interest in such property;”
15. By Act No. 37 of 1972 amendments were made in Section 15,
Section 25 and Second Schedule of the Act. Sections 2, 3 and 4 of the
U.P. Act No. 37 of 1972 provides as follows:-
“2. Amendment of Section 15 of Act IX of 1887.— In Section
15 of the Provincial Small Cause Courts Act, 1887, as amended in
its application to Uttar Pradesh, hereinafter referred to a s the
principal Act, in sub-section (3), the following proviso s hall be
inserted, namely:
“Provided that in relation to suits by the lessor for the eviction
of a lessee from a building after the determination of his lease,
or for recovery from him of rent in respect of the period of
occupation thereof during the continuance of the lease, or of
compensation for the use and occupation thereof after such
determination of lease, the reference in this sub-section to two
thousand rupees shall be construed as a reference to five
thousand rupees.
Explanation.—For the purposes of this sub-section, the
expression ‘building’ has the same meaning as in Article (4) in
the Second Schedule.”
65
3. Amendment of Section 25 of Act IX of 1887.— In Section
25 of the principal Act the following proviso thereto shall be
inserted, namely :
“Provided that in relation to any case decided by a District
Judge or Additional District Judge exercising the jurisdiction of
Judge of Small Causes, the power of revision under this section
shall vest in the High Court.”
4. Amendment of the Second Schedule to Act IX of 1887.—
In the Second Schedule to the principal Act, for Article (4) the
following Article shall be substituted, namely :
“(4) a suit for the possession of immovable property or for the
recovery of an interest in such property, but not including a suit
by a lessor for the eviction of a lessee from a building after the
determination of his lease, and for the recovery from him of
compensation for the use and occupation of that building after
such determination of lease.
Explanation.—For the purposes of this Article, the expression
‘buildings, means a residential or non-residential roofed
structure, and includes any land (including any garden), garages
and out-houses, appurtenant to such building, and also includes
any fittings and fixtures affixed to the building for the more
beneficial enjoyment thereof.”
16. One more amendment, which was affected by U.P. Act No.
37 of 1972 was amendment in Section 25 of Bengal, Agra and Assam
Civil Courts Act, which was made by Section 5 of the Act, which is to
the following effect:-
“5. Amendment of Section 25 of Act XII of 1887.— Section
25 of the Bengal, Agra and Assam Civil Courts Act, 1887, as
amended in its application to Uttar Pradesh shall be re-numbered
as sub-section (1) thereof, and—
(i) in sub-section (1), as so re-numbered, for the existing proviso,
the following proviso shall be substituted, namely :
“Provided that in relation to suits of the nature referred to
in the proviso to sub-section (3) of Section 15 of the said
Act the references in this sub-section to one thousand rupees
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
and five hundred rupees shall be construed respectively as
references to five thousand rupees and one thousand
rupees.”
(ii) after sub-section (1) as so re-numbered, the following sub-
section shall be inserted, namely :
“(2) The State Government may by notification in the official
Gazette, confer upon any District Judge or Additional District
Judge the jurisdiction of a Judge of a Court of Small Causes
under the Provincial Small Cause Courts Act, 1887, for the
trial of all suits (irrespective of their value), by the l essor
for the eviction of a lessee from a building after t he
determination of his lease, or for the recovery from him of
rent in respect of the period of occupation thereof during
the continuance of the lease or of compensation for the use
and occupation thereof after such determination of lease,
and may withdraw any jurisdiction so conferred.
Explanation—For the purposes of this sub-section, the
expression ‘building’ has same meaning as in Article (4) in
the Second Schedule to the said Act.
(3) The State Government may by notification in the official
Gazette delegate to the High Court its powers under this
section.”
17. As noted above, the jurisdiction of Small Causes Court in so
far as State of Uttar Pradesh was concerned was to be vested in both in
the Court of Munsifs [now known as Civil Judge (Junior Division)] and
Civil Judge [now designated as Civil Judge (Senior Division)]. As noted
above, Court of Small Causes were empowered to take cogniz ance of
small causes having particular pecuniary jurisdiction only. Section 25 of
the Bengal, Agra and Assam Civil Courts Act, 1887 empowered t he
State Government by notification to confer upon any Subordinate Judges
and Munsifs with jurisdiction of Small Cause Court for the trial of suits
and cognizance of such suits upto the value as fixed in the Act. Section
25 of the Bengal, Agra and Assam Civil Courts Act, 1887 as applicable
in the State of Uttar Pradesh has been amended as has been noticed
above, where the High Court exercising power under Section 25(2) of
the Bengal, Agra & Assam Civil Courts Act, 1887 can confer upon any
67
District Judge or Additional District Judge the jurisdiction of a Judge of
Small Causes Court for the trial of all suits(irrespective of their value),
by the lessor for the eviction of a lessee of a bui lding after the
determination of his lease.
18. In Section 15 of Provincial Small Cause Courts Act, for sub-
section (2) and (3), following was substituted by U.P. Act 17 of 1991
w.e.f. 15.01.1991:-
“(2) Subject to the exceptions specified in that Schedule and
to the provisions of any enactment for the time being in for ce,
all suits of a civil nature of which the value does not ex ceed
five thousand rupees shall be cognizable by a Court of Small
Causes;
Provided that in relation to suits by the lessor for the e viction
of a lessee from a building after the determination of his lease
or for recovery from him of rent in respect of the period of
occupation thereof during the continuance of the lease, or of
compensation for use and occupation thereof after t he
determination of the lease, the reference in this sub -section
to five thousand rupees shall be construed as a referenc e to
twenty-five thousand rupees.
Explanation- For the purposes of this sub-section, the
expression ‘building’ has the same meaning as in Art.( 4) in
the Second Schedule.”
19. Section 17 of the Act makes the Code of Civil Procedur e
applicable to the Court of Small Causes in all suits cognizable by it and
all proceedings arising out of all such suits. By Uttar Pradesh Civil Laws
(Amendment) Act, 2015 w.e.f. 07.12.2015, Section 19, Section 21 of the
Bengal, Agra and Assam Civil Courts Act, 1887 and Section 15 of
Provincial Small Cause Courts Act, 1887, were amended . The act
contains only four sections which is to the following effect: -
“AN ACT further to amend the Bengal, Agra and Assam Civil
Courts Act, 1887 and the Provincial Small Cause Courts Act
-1887 in their application to Uttar Pradesh.
IT IS HEREBY enacted in the Sixty-sixth year of Republic of
India as follows:-
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
CHAPTER – I
PRELIMINARY
1.(1) This Act may be called the Uttar Pradesh Civi l Laws
(Amendment) Act, 2015,
(2) It shall extend to whole of Uttar Pradesh.
CHAPTER – II
Amendment of Bengal, Agra and Assam, Civil Courts A ct-
1887.
2. Bengal, Agra and Assam, Civil Courts Act-1887 hereinafter
in this chapter referred to as the principal Act,-
(a) in sub-section (1) for the words “ten thousand rupees”
the words “one lakh rupees” shall be substituted;
(b) in sub-section (2) for the words “twenty five t housand
rupees” the words “five lakh rupees” shall be substitut ed.
3. In section 21 of the principal Act, in sub-secti on (1), in
clause (b)-
(a) for the words “one lakh rupees” the words “five lakh
rupees” shall be substituted; and
(b) for the words “five lakh rupees” the words “twen ty five
lakh rupees” shall be substituted.
CHAPTER - III
Amendment of the Provincial Small Cause Courts Act, 1887
4. In Section 15 of the Provincial Small Cause Cour ts Act,
1887,-
(a) in sub-section(2) for the words “five thousand rupees”
the words “twenty five thousand rupees” shall be substitut ed;
(b) in the proviso to sub-section (2) for the words “twenty
five thousand rupees” the words “one lakh rupees” shall be
substituted.”
20. By the above amendment in the Provincial Small Cause Courts
Act, 1887 the limit of pecuniary jurisdiction of small causes court was
increased from Rs.25,000/- to Rs.1 Lakh. The Judge, Small Causes Court
69
in the State of U.P. is senior-most Civil Judge, working in the district.
Although the Court of Small Causes was empowered to take cognizance
of a suit upto the valuation of Rs.1 lakh w.e.f. 07.12.2015, the sui t in
question namely Small Causes Suit No.1 of 2010 which was pending in
the Court of Additional District Judge, Firozabad continued to proceed in
the court of Additional District Judge. None of the partie s raised any
objection with regard to hearing of suit by Additional Distr ict Judge,
consequently, the Additional District Judge heard the parties and by
judgment dated 22.10.2016 decreed the suit for eviction and due rent &
compensation. The tenant aggrieved by the judgment of Additional District
Judge filed a revision under Section 25 of Provincial Small Cause Courts
Act, 1887, before the High Court.
21. One of the grounds taken before the High Court was that i n
view of the U.P. Civil Laws (Amendment) Act, 2015, the Court of
Additional District Judge ceased to have jurisdiction to try suit between
lessor and lessee of value upto Rs.1 Lac w.e.f. 07.12.2015, assumption
of jurisdiction subsequent thereto, is without jurisdiction.
22. The High Court accepted the above submissions raised by
learned Counsel for the respondent vis-a-vis and allowed the revision
by remanding the suit for fresh decision before Small Causes Court
presided by Civil Judge, Senior Division. Following are the reasons given
by the High Court for allowing the revision:-
“...The controversy as to the jurisdiction of the Judg e Small
Causes Court has been decided by this Court, vide judgment
dated 29.08.2016 passed in SCC Revision No.278 of 2 016,
Shobhit Nigam Vs. Smt. Batulan and another. It has been
held that consequent to the amendment, in Section 15 of the
Provincial Small Causes Court Act, an SCC Suit havi ng a
valuation between Rs.25,000/- to Rs.1 lac shall lie before the
Small Cause Court presided over by a Civil Judge(Se nior
Division). The suits having a valuation of more than Rs.1 Lac
would lie before the Additional District Judge/Distric t Judge
constituting a Small Causes Court.
Shri Satendra Kumar-I, who has filed their counter affidavi t
in Court today, has not been able to effectively re but the
submissions made by the counsel for the revisionist.
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
Under the circumstances, this Court finds that the order
impugned is without jurisdiction and is hereby set aside. The
SCC revision is allowed...”
23. Now we proceed to consider the issues which have arisen in
the present appeals:-
ISSUE NO.1 & 2
24. Prior to Uttar Pradesh Civil Laws (Amendment) Act, 2015,
as per Section 15(2) of Provincial Small Cause Court, 1887 as applicable
in the State of Uttar Pradesh in relation to suits by lessor for eviction of
lessee from building after determination of his lease aft er recovering
from him of rent, the Court of Small Causes would have taken cognizance
of suits value of which does not exceed Rs.25,000/-. The suit was filed
with the valuation of Rs.21,175/-. The Suit was initially filed in the Court
of Civil Judge, Senior Division, Small Cause Court, Firozabad. Plaintiff
filed a application for amendment which was allowed permitti ng the
valuation to be enhanced to Rs.27,775/-. The suit th ereafter was
transferred to the Court of District Judge and re-numbered as S.C.C.Suit
No.1 of 2010.
25. The main issue to be answered is as to whether after
07.12.2015, the court of Additional District Judge where the suit in question
was pending could still have pecuniary jurisdiction to decide the suit or
suit ought to have been transferred back to the court of Civil J udge,
Senior Division.
26. The High Court while allowing the revision has relied on an
earlier judgment of the High Court in Shobhit Nigam vs. Smt.Batulan
and another (supra) .
27. In above case also the valuation of small causes suit wa s
Rs.44,000/- and the suit was pending in the court of Additional District
Judge who after U.P. Civil Laws (Amendment) Act, 2015 proceeded to
decide the suit wide its judgment dated 24.05.2016. S.C.C. Revis ion
filed in the High Court, the same very argument was pressed that the
order of Additional District Judge is without jurisdiction. The High Court
noticed the provisions of Section 15 of the Provincial Small Causes Courts
Act, the U.P. Civil Laws (Amendment) Act, 2015 and had also take n
note of the objects and reason of U.P. Civil Laws (Amendment) Act,
2015. The High Court held that the phrase “institution” as occurring in
71
the objects and reasons does not confine to institution of civil suits only
and after the amendment w.e.f. 07.12.2015, rather, District Judge and
Additional District Judge could have no jurisdiction to decide suits having
valuation of less than Rs.1 lac and their jurisdiction shall be only with
regard to those cases which has valuation of over Rs.1 lac. Th e High
Court in Shobhit Nigam’s Case held that assumption of jurisdiction of
Additional District Judge deciding the suit having valuation of Rs.44,000/
- is illegal and set aside the judgment. In Shobhit Nigam’s case , the
High Court also directed that copy of judgment be circulated to all District
Judges of U.P. for necessary compliance to ensure that all pending suits
of rent and eviction from a building after determination of lease falling
under proviso to Section 15(2) of the Act upto the valuation of Rs.1,00,000/
- be transferred to the Small Causes Court presided over by the senior
most Civil Judge, Senior Division of the district irrespective of the date
of their institution.
28. Learned Counsel appearing for the respondent submitted that
judgment of Shobhit Nigam’s case does not lay down the correct law.
He has relied on another judgment of learned Single Judge decided on
30.08.2017 in S.C.C. Revision No.171 and 172 of 2017, Pankaj Hotel
and others vs. Bal Mukund and others . Learned Single Judge who
decided the case of Pankaj Hotel and others took the contrary view
and held that U.P. Civil Laws (Amendment) Act, 2015 is only prospective
in nature and was applicable with regard to institutions of fresh suits
only. In the suits pending, the Court of District Judge/Additional District
Judge continued to have pecuniary jurisdiction to decide Small Causes
Suits upto the valuation of Rs.1 lac even after U.P . Civil Laws
(Amendment) Act, 2015 enforced w.e.f. 07.12.2015. Learned Single
Judge referred to an earlier judgment in S.C.C. Revision defective No.
76 of 2017, Sanjay Sharma alias Pintu vs. Anil Dua alias Titu , decided
on 13.07.2017 where learned Singe Judge had taken a contrary view to
the judgment of learned Single Judge in Shobhit Nigam’s Case (Supra) .
29. One of the issues, which has to be answered is as to whether
the Court of Additional District Judge, which has been invested with the
jurisdiction of Small Causes Court after amendment by Utta r Pradesh
Civil Laws (Amendment) Act, 2015 could still have proceeded to decide
the Small Causes Suit w.e.f. 07.12.2015, which suits became cognizable
by a Judge Small Causes Court, i.e., a Court presided by a Civil Judge.
For answering the above issue, we need to find out the Scheme of Small
Cause Courts Act.
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
30. As noticed above, Small Cause Courts were envisaged to be
Courts, which may expeditiously dispose of small causes. Small causes
were contemplated to be disposed of by the Courts by follow ing the
procedure less cumbersome as compared to those applicable in the
regular civil courts. By U.P. Act No. 37 of 1972, the cases by a les sor
for eviction of lessee and for recovery of rent in respect of the period of
occupation was also taken in fold of small causes, which could be taken
cognizance by Small Causes Court after amendment of Clause (4) of
Second Schedule of the Provincial Small Cause Courts Act, 1887. The
amendment made in Section 25 of the Bengal, Agra & Assam Civi l
Courts Act, 1887 by U.P. Act No. 37 of 1972 empowered the State
Government to confer upon any District Judge or Additiona l District
Judge power of Judge of Small Causes Court “for the trial of suits
irrespective of their value by the lessor for the eviction of lessee…..”
The above amendment was necessitated since the Court of Small Causes
presided by Civil Judge could have entertained small causes suits having
value of only five thousand rupees. As per amendment by U.P. Act No.
37 of 1972 cases by lessor for the eviction of lessee having valuation of
more than five thousand rupees could not have been taken cognizance
by Civil Judges, who were designated as Judges of Small Causes Court
to take up such cases. When Legislature treated all suits by the lessor
for the eviction of lessee from a building as a “Small Ca use Suit”, a
forum had to be created for deciding such cases as small cau se cases.
The expression “irrespective of their value” used in Section 25 as amended
was with clear intention that irrespective of the value, the cases filed by
the lessor for the eviction of lessee should be treated as sm all causes
cases and should be dealt as a small cause case. By subsequent
amendment, the Small Causes Courts presided by Civil Judge become
empowered to decide cases of small cause upto twenty-five t housand
rupees and cases above twenty-five thousand rupees by lessor against
lessee were to be taken cognizance by Court of Additional District Judges.
The legislative Scheme contains a clear dichotomy between cases, which
could have been taken cognizance by small causes courts presi ded by
Civil Judge and those of small cause cases presided by District Judge or
Additional District Judge. The dividing line was only valuation of small
cause cases relating to suits by lessor against the less ee. Necessity to
empower the District Judge/Additional District Judge to decide small
cause cases relating to eviction by lessor against lessee was with the
above intent. The Legislature never intended that all cases pertaining to
73
suits by lessor against the lessee of any valuation could be filed in any
Small Causes Court.
31. It is true that District Judge or Additional District Judge
functioning as Small Causes Courts can take cognizance of all suits
irrespective of their value. But use of the words “irresp ective of their
value” was in contradiction of the pecuniary value, which was given to
Judge of Small Causes Courts presided by Civil Judge. T he fact that
District Judge or Additional District Judge can take cognizance of all
suits irrespective of their value shall not whittle down or dilute the line of
separation between two courts in taking cognizance of small cause cases.
The mere fact that District Judge or Additional District Judge can take
cognizance of suits of unlimited value will not empower them to take
cognizance of cases, which, according to statutory Scheme can be taken
only by small causes courts presided by Civil Judge. It is r elevant to
notice that the Allahabad High Court had occasion to c onsider the
provisions of the Provincial Small Cause Courts Act, 1887 as applicable
in the State of Uttar Pradesh. A reference is made to M.P. Mishra Vs.
Sangam Lal Agarwal, AIR 1975 Allahabad 425. In the above case
before the Allahabad High Court, a small cause suit was decided by the
Additional District Judge, which had valuation of more than five thousand
rupees. Arguments were raised that valuation of small cau se case is
more than five thousand rupees, hence Additional District Judge could
not have decided the case as small cause case rather it o ught to have
been decided as a normal civil suit. In the above context, p rovision of
U.P. Act No. 37 of 1972 and U.P. Act No. 19 of 1973 by which Section
25 of Bengal, Agra and Assam Civil Courts Act, 1887 was amended by
adding another sub-section, i.e. sub-section(4), and the notifications issued
by the High Court in above respect were noticed. Paragraph Nos. 5 to
8, which are relevant are as follows:-
“5. By the U.P. Civil Laws Amendment Act of 1973 (President’s
Act No. 19 of 1973) another sub-section, namely, Sub-section (4)
was added to Section 25. The said Sub-section (4) reads as follows :
“Where the jurisdiction of a Judge of a Court of Small Causes
is conferred upon any District Judge or Additional District Judge
by notification under this section, then, notwithstanding anything
contained in Section 15 of the Provincial Small Cause Courts
Act, 1887 all suits referred to in Sub-section (2) shal l be
cognizable by Court of Small Causes.”
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
By virtue of Section 1 (3) of the said Act of 1973 it shall be deemed
that the said Sub-section (4) came into force on the 20th September,
1972, i.e. the date on which the U.P. Civil Laws Amendment Act
of 1972 came into force.
6. Certain notifications which have been issued may also be
noticed here. Notification No. 4111 (8)/VII-A-580/72 , dated
September 22, 1972, published in Uttar Pradesh Gazette, date d
30-9-72, Part I (Page 5252), issued by the State Government lays
down as under :
“In exercise of the powers conferred by Sub-section (3) of
Section 15 of the Provincial Small Cause Courts Act, 1887
(Act IX of 1887) as amended by the U.P. Civil Laws
Amendment Act, 1972 (U.P. Act No. 37 of 1972) and in
continuation of Government Notification No. 1 (8) 69-Nyaya
(Ka-II), dated September 23, 1969, the Governor is pleased to
direct, that subject to the exceptions specified in the Second
Schedule to the first mentioned Act, and to the Provisions of
any enactment for the time being in force, all suite referred to
in the proviso to the said sub-section of which the value does
not exceed five thousand rupees, shall, with effect from the
date of publication of this notification, be cognizable by the
Courts of Judge. Small Causes, Bareilly, Moradabad, Meerut,
Gorakhpur, Aligarh, Kanpur, Allahabad, Varanasi, Agr a,
Lucknow, and the Court of additional Judge, Small Causes,
Lucknow.”
7. The State Government issued another notification on the same
day i.e. Sep. 22, 1972 dated September 22, 1972, published in
Uttar Pradesh Gazette, Part I, dated October 7, 1972 (page No.
5973), which lays down as under :
“In exercise of the powers under Sub-section (3) of Section
25 of the Bengal, Agra and Assam Civil Courts Act, 1887 (Act
XII of 1887) as amended by the Uttar Pradesh Civil Laws
(Amendment) Act, 1972, (U.P. Act No. 37 of 1972) and in
supersession of all earlier notifications issued in this behalf, the
Governor is pleased to delegate to the High Court of Judicature
at Allahabad the powers of the State Government under the
said section.”
75
8. By Notification No. 525 dated 25-10-1972 the High Court
conferred “upon all the District Judges and Additional Distric t
Judges, the jurisdiction of a Judge of a Court of Small Causes
under the Provincial Small Cause Courts Act, 1887 (Act IX of
1887), for the trial of all suits (irrespective of their value) of the
nature referred to in the said Sub-section (2).”
32. The High Court also noticed the object and purpose of Uttar
Pradesh Civil Laws (Amendment) Act, 1972 and High Court held that
Additional District Judge had jurisdiction to take cognizance of cases of
valuation of more than five thousand rupees. In Paragraph Nos. 11 and
12, following was stated:-
“11. The amendments which were effected by the U.P. Civil Laws
Amendment Act of 1972 were motivated by a consideration that
the suits for eviction filed by the lessors against the le ssees of
buildings took an unduly long time to be finally decided and,
therefore, it was thought advisable that such suits should be tried
as suits of the nature of small causes suits so that they c ould be
disposed of expeditiously and there could be no appeal against the
decision of the trial Court. This change was sought to be brought
about by amending Article 4 of the Second Schedule of the
Provincial Small Cause Courts Act so that a suit by a le ssor for
the eviction of a lessee from a building after the determination of
his lease and for the recovery from him of compensation for the
use and occupation of the buildings after such determination of
lease was no longer excepted from the cognizance of the court of
small causes. Such suits, therefore, became triable by the Courts
of Judge, Small Causes and by virtue of Section 16 of the Provincial
Small Cause Courts Act they became exclusively triable by such
courts. Of course, the limitation on account of the valuation of the
suit remained, This limitation was contained in Section 15(2) and
in Section 15(3). Ordinarily, the jurisdiction of the Small Causes
Court stretched up to Rs. 1,000 under Section 15(2) of the
Provincial Small Cause Courts Act. But under Section 15(3) the
State Government was empowered to raise the pecuniary limit of
such jurisdiction to Rs. 5,000 in respect of suits between the lessors
and the lessees for eviction of the latter after the determination of
their tenancy from buildings. This result was brought about by the
addition of the proviso to Section 15(3) by the U.P. Civil Law s
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
Amendment Act, 1972. As has been stated, the State Government
issued a Notification dated Sept. 22, 1972, whereby the Court of
Judge, Small Causes situated at Bareilly, Moradabad, Mee rut,
Gorakhpur, Aligarh, Kanpur, Allahabad, Varanasi, Agra, Lucknow
and the Court of Additional Judge, Small Causes, Lucknow were
empowered to take cognizance of the suits between the lesso rs
and the lessees for the latter’s eviction from buildings whose value
does not exceed Rs. 5,000. In view of the addition of Sub-section
(2) to Section 25 of the Bengal, Agra and Assam Civil Courts Act
it became possible to confer upon the District Judge or Additional
District Judge the jurisdiction of a Judge of a Court of Small Causes
for the trial of suits for eviction of lessees and for re covery of
rents and damages (disregarding some minor aspects of the
matter). Such a jurisdiction has been conferred upon the District
Judges and the Additional District Judges by the af oresaid
Notification dated 25-10-1972 issued by this Court.
12. In view of the aforesaid amendments, in the district of Allahabad
(from where this revision has arisen) the Court of Judge of Small
Causes had a jurisdiction to take cognizance of the suits between
the lessors and the lessees in respect of the latter’s eviction from
buildings provided the valuation of such suits does not exceed Rs.
5,000. If the valuation exceeds Rs. 5,000 then the court of the
District Judge and the Additional District Judge who have been
empowered to take cognizance of such suits can try the same in
the manner in which suits of the Small Cause Court nature are
tried. In Section 25(2), it is clearly stated that the District Judge or
the Additional District Judge will have the jurisdiction of a Judge
of a Court of Small Causes for the trial of the aforesaid variety of
suits irrespective of their value. In my view, if the contention on
behalf of the applicant were to be accepted then it will be doing
violence to the said expression. Any interpretation which seeks to
put a limitation on the valuation of the Suits cognizable b y the
District Judge or the Additional District Judge will be contrary to
the clear expression used in Sub-section (2) of Sec tion 25
“irrespective of their value”. Learned counsel for the appli cant
placed reliance on the pronouncement of the Supreme Cour t
reported in Raja Soap Factory v. S. P. Shantharaj [AIR (196 5)
SC 1449. In my view, the said pronouncement does not support
77
the contention on behalf of the applicant. Counsel also sought to
support his contention by inviting my attention to Sub-section (4)
added to Section 25 by the U.P. Civil Laws Amendment Act of
1973. The said Sub-section (4) has been reproduced above and in
the concluding portion thereof the words used are “......... all suits
referred to in Sub-section (2) shall be cognizable by court of Small
Causes”. It is urged that if the legislative intention were that the
District Judge or the Additional District Judge on whom the powers
of a Judge of a Court of Small Causes have been conferred should
take cognizance of the aforesaid variety of suits between the lessor
and the lessee then in the concluding portion of Sub-section (4)
the legislature would not have used the words “Court of Small
Causes” but would have used the expression “District Judge or
Additional District Judge,” counsel contended that there is a
distinction between a Court of Small Causes established under
the Provincial Small Causes Court and officers who are invested
with the powers of a Judge of Court of Small Causes. In my
opinion this contention is not valid. In Mt. Sukha v. Raghunath
(AIR 1917 All. 62); D. D. Vidyarthi v. Ram Pearey Lal (AI R
1935 All 690); Badal Chandra v. Srikrishna Dey (AIR 1929 Cal
354); Bhagwan Das v. Keshwar Lal (AIR 1923 Pat 49) and
Narayan Sitaram v. Bhagu [(1907) ILR 31 Bom 314)] it has been
laid down that the Courts on which Small Cause Court’s powers
are conferred shall also be deemed to be Courts of Small Causes.
Section 4 of the Provincial Small Cause Courts Act lays down as
under:—
“In this Act, unless there is something repugnant in the subject
or context, “Court of Small Causes” means a Court of Small
Causes constituted under this Act. and includes any person
exercising jurisdiction under this Act in any such Court.”
It is clear that the expression “Court of Small Causes” has to be
interpreted in the context in which the said expression is used. In
my view, the expression ‘Court of Small Causes’ used at the end
of subsection (4) of Section 25 really means and refers to a District
Judge or Additional District Judge on whom the jurisdiction of a
Judge of Small Causes has been conferred.”
33. The Allahabad High Court has followed the above judgment
in several cases subsequently.
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
34. Whether the Additional District Judge, in the facts of the present
case, had jurisdiction to take cognizance of small causes suits having
valuation upto Rs. 1 lakh and could still have proceeded to dec ide the
suit, whose valuation was less than Rs. 1 lakh? We may als o notice
provision of Section 15 of the Code of Civil Procedure, which provides
that suits shall be instituted in the Court of the lowest grade competent
to try it. Section 15 of Code of Civil Procedure is as follows:-
“Every suit shall be instituted in the Court of the lowest gra de
competent to try it.”
35. The purpose of Section 15 is obvious that even though more
than one court has jurisdiction to try the suit, it should be instituted in the
Court of lowest grade. For example, a small cause case can be instituted
in Court of Small Cause presided by Civil Judge having valuation of upto
Rs. 1 lakh as on date and small cause suit having valuation of more than
Rs. 1 lakh can be instituted in the Court of District Judge or Additional
District Judge. As per Section 15 of the Code of Civil Procedure, suit of
less than Rs. 1 lakh valuation has to be instituted in Small Causes Court
presided by Civil Judge. Although, District Judge or Additional District
Judge has unlimited pecuniary jurisdiction but under the legi slative
Scheme, the suit is not to be taken cognizance by the District Judge or
Additional District Judge, which has valuation upto Rs. 1 lakh. Even if
Section 15 of the C.P.C. is a provision, which regulates the institution of
suits and does not affect the jurisdiction of Courts, reading the provision
of Section 15 alongwith relevant provisions of the Provincial Small Cause
Courts Act, 1887 and the Bengal, Agra, Assam Civil Courts Act, 1887,
the legislative Scheme is clear that small cause case s should be taken
cognizance by Small Cause Courts presided by Civil Judge upto the
valuation of Rs. 1 lakh and cases having valuation of more than Rs. 1
lakh by District Judge or Additional District Judge, who hav e been
invested with the power of Small Cause Courts. Unless th e above
legislative intent and Scheme is followed, there shall be confusion and
inconsistency. The legislative provisions have to be interpr eted in a
manner, which may advance the object and purpose of the Act. Whe n
clear dichotomy regarding taking cognizance of small cause s suits
presided by Civil Judge and by District Judge or Additional District Judge
have been provided for, the said dichotomy and separation to take
cognizance of cases has to be followed to further the object and purpose
of legislation.
79
36. In Pankaj Hotel case (supra) , the Court took the view that
since the Court of District Judge or Additional District Judge, which
have been invested with the power of small causes Court had unlimited
pecuniary jurisdiction, they can validly adjudicate small causes suits having
valuation of less than Rs. 1 lakh even after amendment by Uttar Pradesh
Civil Laws (Amendment) Act, 2015, we do not approve the above view.
When the Court of District Judge or Additional District Judge could no
longer take cognizance of small cause suits of having le ss than Rs. 1
lakh valuation, it was no longer in the competence of Small Cause Court
presided by District Judge or Additional District Judge to proceed to
decide the suit of having valuation of less than Rs. 1 lakh. Proper course
was to transfer the cases before a competent court to deci de the suits.
It is a different matter that the Court of District Judge or Additional
District Judge when proceeded to decide the small cause suit s after
07.12.2015 of valuation of less than Rs. 1 lakh and neither any objection
was raised by either of the parties nor attention of the Court was drawn
towards the amendment, Section 21 of the C.P.C. is there to d eal with
such eventuality, which provision we shall hereinafter deal separately.
37. Learned Single Judge in Pankaj Hotels’ Case(Supra) has
referred to and relied on various judgments of this Court which shall be
referred to hereinafter.
38. Section 15 of the Provincial Small Cause Courts Act, 1887
bears the title “Cognizance of Suits by Courts of Small Caus es”. Sub-
section (1) of Section 15 provides that a Court of Small Causes shall not
take cognizance of the suits specified in the Second Sch edule as suit
excepted from the cognizance of Court of Small Causes. Sub-se ction
(2)(as applicable in Uttar Pradesh) provides that all suits of the civil
nature of which the value does not exceed Rs.5,000/- shall be cognizable
by Court of Small Causes. As per the proviso to sub-section (2) in relation
to suits by lessor for the eviction of lessee from building after determination
of lease, the reference of Rs.5,000/- shall be construed as a reference
to Rs.25,000/-. The keyword in the provision is “ shall be cognizable
by Court of Small Causes.” What is the meaning of the phrase
‘Cognizable by Court of Small Causes’?
39. The word ‘Cognizance’ has been defined in Black’s Law
Dictionary in following manner: -
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
“ Cognizance-
(1) A court’s right and power to try and to determine c ases;
Jurisdiction,
(2) The taking of judicial or authoritative notice.
40. Advanced Law Lexicon by P.Ramanatha Aiyar defin es
‘Cognizance’ in the following manner: -
“Cognizance. - Judicial notice or knowledge; the judicial
recognition or hearing of a cause; jurisdiction, or right to
try and determine causes. It is a word of the large st
import:embracing all power, authority and jurisdiction. The
word “cognizance” is used in the sense of “right to take noti ce
of and determine a cause.” Taking cognizance does n ot
involve any formal action, or indeed action of any k ind, but
occurs as soon as a Magistrate, as such, applies his min d of
the suspected commission of an offence…..”
41. This Court in (2004) 2 SCC 349, State of Himachal Pradesh
vs. M.P.Gupta, had occasion to consider the expression ‘Cognizance’.
The definition of word ‘Cognizance’ as given in Black’s Law Dictionary
was quoted with approval. In paragraph 10 of the judgment, following
was stated: -
“10……According to Black’s Law Dictionary the word
“cognizance” means “jurisdiction” or “the exercise of
jurisdiction” or “power to try and determine causes ”. In
common parlance, it means taking notice of. A court, therefore,
is precluded from entertaining a complaint or takin g notice
of it or exercising jurisdiction if it is in respect of a public
servant who is accused of an offence alleged to hav e been
committed during discharge of his official duty.
42. The statutory provisions of Section 15(2) of Provincial Small
Cause Courts Act, 1887 uses the expression “shall be cognizable by the
Court of Small Causes”. The word ‘Cognizable’ is a word of wide import.
It takes into its fold institution, hearing and decision of a case cognizable
by it. In Pankaj Hotels Case, learned Single Judge of the High Court
had noted the statement of objects of U.P. Civil Laws (Am endment)
Act, 2015 and has given emphasis on word “for institution” and concluded
that amendment is prospective in nature and is applicable only to suits
81
and appeals being instituted after the amendment. When the plain word
in the statute i.e. Section 15(2) uses the word “cognizable” whether
“statements of objects and reasons” which uses the word “institut ion”
shall whittle down, the word ‘cognizable’ as used in Section 15(2). The
statement of objects and reasons of U.P. Civil Laws (Amendment) Act,
2015, are to the following effect: -
“STATEMENT OF OBJECTS AND REASONS
WHEREAS the value of the subject matters brought to the
courts has increased substantially, the pecuniary jurisdic tion
of the Civil Courts as well as those of Small Cause C ourts in
the State of Uttar Pradesh requires to be raised for instituti on
of Civil Suits and appeals. It has, therefore, become necessary
to amend the Bengal, Agra and Assam Civil Courts Act, 1887
and Provincial Small Cause courts Act, 1887 to increase the
pecuniary jurisdiction of Civil Courts and those of small
Cause Courts in the State of Uttar Pradesh for securing be tter
administration of Justice.
The Uttar Pradesh Civil Laws (Amendment) Bill, 2015 is
introduced accordingly.”
43. It is true that statement of objects noticed that value of subject
matters brought to the courts has increased substantially, hence, pecuniary
jurisdiction of the Civil Courts as well those of Small Causes Courts in
State of Uttar Pradesh requires to be raised for the institu tion of civil
suits and appeals. The amendment has raised pecuniary limits in Provincial
Small Cause Courts Act, 1887. The statement of objects and re asons
explains the reason for increase of pecuniary jurisdiction but use of word
‘for institution’ in statement of object cannot control the express language
of the statutory provisions.
44. A three-Judge Bench of this Court in S.S. Bola v. B.D.
Sardana , (1997) 8 SCC 522 , has held that statement of objects and
reasons of the statute can be looked into only as extrinsic aid to find out
the legislative intent only when the meaning of statut e by its ordinary
language is obscure and ambiguous. In paragraph 176, following was
laid down: -
“176…..But it is a cardinal rule of interpretation t hat the
Statement of Objects and Reasons of a statute is to be looked
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
into as an extrinsic aid to find out the legislative intent only
when the meaning of the statute by its ordinary lang uage is
obscure or ambiguous. But if the words used in a statute are
clear and unambiguous then the statute itself decla res the
intention of the legislature and in such a case it would not be
permissible for a court to interpret the statute by examining
the Statement of Objects and Reasons for the statut e in
question.”
45. In Subha Ram vs. state of maharashtra, (2003) 1 SCC
506 , this court again laid down that statement of objects and rea sons
can be looked into for limited purpose of ascertaining condition prevailing
at the time which prompted or actuated the proposal of bill to introduce
the same and the extent of existing evil of the society. Further, in Bhaiji
vs. Sub-Divisional Officer,(2003) 1 SCC 692 , this court again reiterated
the following principles of statutory interpretation in paragraph 11:-
“11. Reference to the Statement of Objects and Reasons is
permissible for understanding the background, the antecedent
state of affairs, the surrounding circumstances in relat ion to
the statute, and the evil which the statute sought to remedy.
The weight of judicial authority leans in favour of t he view
that the Statement of Objects and Reasons cannot be utilize d
for the purpose of restricting and controlling the plain meaning
of the language employed by the legislature in draf ting a
statute and excluding from its operation such trans actions
which it plainly covers. (See Principles of Statuto ry
Interpretation by Justice G.P. Singh, 8th Edn., 2001, pp. 20 6-
09.)”
46. The statement of object of U.P. Civil Laws (Amendment)
Act, 2015 thus explains the reason for bringing the amendment for
increasing the pecuniary jurisdiction but the word ‘institution’ used in
statement of object shall not control the expressed language of Section
15. The expression ‘cognizance’ used in Section 15 shall mean and include
institution hearing and decision of the case. When statute provides that
cognizance of particular cause is to be taken by a parti cular court, no
other court can take cognizance of the cause, since legislat ure never
creates or provides for parallel jurisdiction in two diffe rent courts for
taking cognizance of a cause. When Section 15 provides that all suits of
83
civil nature of which the value does not exceed Rs.25,000/- “shall be
cognizable by the Courts of Small Causes”, the cognizance shall be taken
by that very Court and no other Court.
47. As noted above, the proviso to sub-section (2) provides that
figure Rs.5,000/- shall be construed to Rs.25,000/-. By U.P. Civil Laws
(Amendment) Act, 2015, the figure of Rs.25,000/- stood substituted by
Rs.1 lac. Reading sub-section(2) read with proviso and U.P. Civil Laws
(Amendment Act), 2015 clearly means that Small Cause suits with
valuation not exceeding Rs.1 lac shall be cognizable by Court of Small
Causes. When a Small Cause suit not exceeding value of Rs.1 la c is
cognizable by Court of Small Causes, obviously, no other court can take
cognizance. Additional District Judge to whom small causes suit in
question was transferred since its valuation was more than of Rs.25,000/
- was not competent to take cognizance of the suit after U.P. Civil Laws
(Amendment Act), 2015 w.e.f.07.12.2015, when the suit in question
became cognizable by Small Causes Court i.e. Court of Civil Judge,
Senior Division. To the above extent, the judgment of learned Single
Judge in Shobhit Nigam’s Case has to be approved and judgment of
Single Judge in Pankaj Hotels (Supra) laying down that even after
07.12.2015, the Additional District Judge had jurisdiction to decide the
suit in question cannot be approved.
48. We further observe that learned Single Judge in Pankaj Hotels
case having noticed an earlier view of learned Single Judge in Shobhit
Nigam’s case , and he being of the opinion that judgment does not lay
down the correct law, appropriate course open for Single Judge was to
refer the matter for consideration by a larger bench. The judgme nts of
the High Court are relied on and followed by all sub-ordinate courts in
the State. It is always better to achieve certainty by an authoritative
opinion by the High Court instead of giving conflicting views by different
learned Single Judges which may confuse the litigants, lawyers and sub-
ordinate courts in applying the law.
ISSUE NO.3
49. It is the submission of learned counsel for the appellant that
even if the Additional District Judge was not competent to d ecide the
small causes suit on 22.10.2016, the judgment of the Additional District
Judge was not liable to be interfered with by the revisional court in view
of Section 21 of the Code of Civil Procedure. Section 21 of the Code of
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
Civil Procedure relates to objection to jurisdiction. Secti on 21 of the
Code of Civil Procedure is as follows:-
“21. Objections to jurisdiction. — [(1)] No objection as to the
place of suing shall be allowed by any Appellate or Revisio nal
Court unless such objection was taken in the Court of first
instance at the earliest possible opportunity and in all c ases
where issues are settled at or before such settleme nt, and
unless there has been a consequent failure of justice.
[(2) No objection as to the competence of a Court w ith
reference to the pecuniary limits of its jurisdicti on shall be
allowed by any Appellate or Revisional Court unless such
objection was taken in the Court of first instance at the ear liest
possible opportunity, and, in all cases where issues are se ttled,
at or before such settlement, and unless there has been a
consequent failure of justice.
(3) No objection as to the competence of the executing Court
with reference to the local limits of its jurisdicti on shall be
allowed by any Appellate or Revisional Court unless such
objection was taken in the executing Court at the e arliest
possible opportunity, and unless there has been a consequent
failure of justice.]”
50. The policy underlying Section 21 of Code of Civil Procedure
is that when the case has been tried by a court on merits and the judgment
rendered, it should not be liable to be reversed purely on technical grounds,
unless it has resulted in failure of justice. The provisions akin to Section
21 are also contained in Section 11 of the Suit Valuation Act, 1887 and
Section 99 of Code of Civil Procedure. This Court had occasion to consider
the principle behind Section 21, Code of Civil Procedure and Section 11
of the Suit Valuation Act, 1887 in AIR 1954 SC 340 , Kiran Singh v.
Chaman Paswan . In paragraph 7 of the judgment following was laid
down: -
“7……The policy underlying Sections 21 and 99 of the Civil
Procedure Code and Section 11 of the Suits Valuation Act is
the same, namely, that when a case had been tried by a court
on the merits and judgment rendered, it should not be liabl e
to be reversed purely on technical grounds, unless it had
resulted in failure of justice, and the policy of the leg islature
85
has been to treat objections to jurisdiction both t erritorial
and pecuniary as technical and not open to consideration by
an appellate court, unless there has been a prejudice on the
merits. The contention of the appellants, therefore, that the
decree and judgment of the District Court, Monghyr, should
be treated as a nullity cannot be sustained under Secti on 11
of the Suits Valuation Act.”
51. One more submission which was raised in the said appeal
was considered by this Court. One of the submission of the appellant
who had instituted the suit in the subordinate court was that as per the
revised valuation, the appeal against the decree of subordinate judge did
not lay before the District Court but to the High Court, hence, the judgment
of the District Judge in appeal should be ignored. The appeal in the High
Court be treated as first appeal. It was contended that a ppellant has
been prejudiced in the above manner. Rejecting the above submissions,
this court laid down following in paragraphs 11 and 12:-
“11 .………This argument proceeds on a misconception. The right
of appeal is no doubt a substantive right, and its deprivation is a
serious prejudice; but the appellants have not been depriv ed of
the right of appeal against the judgment of the Subordinate Court.
The law does provide an appeal against that judgment to the District
Court, and the plaintiffs have exercised that right. Indeed, the
undervaluation has enlarged the appellants’ right of appeal, because
while they would have had only a right of one appeal and that to
the High Court if the suit had been correctly valued, by reason of
the undervaluation they obtained right to two appeals, one to the
District Court and another to the High Court. The complaint of
the appellants really is not that they had been deprived of a right
of appeal against the judgment of the Subordinate Court, which
they have not been, but that an appeal on the facts against tha t
judgment was heard by the District Court and not by the High
Court. This objection therefore amounts to this that a change in
the forum of appeal is by itself a matter of prejudice for the purpose
of Section 11 of the Suits Valuation Act.
12. The question, therefore, is, can a decree passed on appeal by
a court which had jurisdiction to entertain it only by reason of
undervaluation, be set aside on the ground that on a true valuation
that court was not competent to entertain the appeal? Three High
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
Courts have considered the matter in Full Benches, and have come
to the conclusion that mere change of forum is not a pr ejudice
within the meaning of Section 11 of the Suits Valuation Act. Vide
Kelu Achan v. Cheriya Parvathi Nethiar Mool Chand v. Ram
Kishan and Ramdeo Singh v. Raj Narain . In our judgment, the
opinion expressed in these decisions is correct………”
52. The above principle has been reiterated by this Court in AIR
(1962) SC 199, Hiralal vs. Kalinath and AIR 1963 SC 634, Bahr ain
Petroleum Co. vs. P.J.Pappu and Another.
53. This court in (1993) 2 SCC 130, R.S.D.V. Finance Company
Private Limited vs. Shree Vallabh Glass Works Ltd. had again
considered Section 21 of the Code of Civil Procedure. In paragraphs 7
and 8, following has been laid down: -
“7………It may be further noted that the learned Single Judge
trying the suit had recorded a finding that the Bombay Court
had jurisdiction to entertain and decide the suit. Sub-sec tion
(1) of Section 21 of the Code of Civil Procedure provides th at
no objection as to the place of suing shall be allowed by any
appellate or revisional court unless such objection was tak en
in the court of first instance at the earliest possibl e opportunity
and in all cases where issues are settled at or bef ore such
settlement and unless there has been consequent fai lure of
justice. The above provision clearly lays down that such
objection as to the place of suing shall be allowed by the
appellate or revisional court subject to the follow ing
conditions:
(i) That such objection was taken in the court o f first
instance at the earliest possible opportunity;
(ii) in all cases where issues are settled then at or before
such settlement of issues;
(iii) there has been a consequent failure of justice.
8. In the present case though the first two condition s are
satisfied but the third condition of failure of jus tice is not
fulfilled. As already mentioned above there was no dispute
regarding the merits of the claim. The defendant has admitt ed
the deposit of Rs 10,00,000 by the plaintiff, as we ll as the
87
issuing of the five cheques. We are thus clearly of the view
that there is no failure of justice to the defendant by decr eeing
of the suit by the learned Single Judge of the Bombay High
Court, on the contrary it would be totally unjust and fa ilure
of justice to the plaintiff in case such objection relating to
jurisdiction is to be maintained as allowed by the Di vision
Bench of the High Court in its appellate jurisdiction.”
54. In (2005) 7 SCC 791,Harshad Chiman Lal Modi vs. DLF
Universal Ltd., this court had again considered Section 21 and other
provisions of Code of Civil Procedure. In paragraph 30, following has
been laid down: -
“30…………The jurisdiction of a court may be classified into
several categories. The important categories are (i) ter ritorial
or local jurisdiction; (ii) pecuniary jurisdiction; and (iii)
jurisdiction over the subject-matter. So far as territor ial and
pecuniary jurisdictions are concerned, objection to such
jurisdiction has to be taken at the earliest possible opport unity
and in any case at or before settlement of issues. The la w is
well settled on the point that if such objection is not tak en at
the earliest, it cannot be allowed to be taken at a subsequent
stage. Jurisdiction as to subject-matter, however, is totally
distinct and stands on a different footing. Where a court has
no jurisdiction over the subject-matter of the suit b y reason
of any limitation imposed by statute, charter or commi ssion,
it cannot take up the cause or matter. An order passed by a
court having no jurisdiction is a nullity.”
55. Again in (2007) 13 SCC 650, Subhash Mahadevasa Habib
v. Nemasa Ambasa Dharmadas , this court held that there is distinction
between lack of inherent jurisdiction and objection to territo rial and
pecuniary jurisdiction. This court noticed the amendments made in Section
21 in the year 1976. Following was stated in paragraph 34, 37 and 41:-
“34. It may be noted that Section 21 provided that no objection
as to place of the suing can be allowed by even an appellat e
or revisional court unless such objection was taken in the
court of first instance at the earliest possible opportuni ty and
unless there has been a consequent failure of justice. In 1976,
the existing section was numbered as sub-section (1) and su b-
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
section (2) was added relating to pecuniary jurisdi ction by
providing that no objection as to competence of a court with
reference to the pecuniary limits of its jurisdicti on shall be
allowed by any appellate or revisional court unless such
objection had been taken in the first instance at the earliest
possible opportunity and unless there had been a consequent
failure of justice………
37. As can be seen, Amendment Act 104 of 1976 introduced
sub-section (2) relating to pecuniary jurisdiction a nd put it
on a par with the objection to territorial jurisdiction and the
competence to raise an objection in that regard even in an
appeal from the very decree. This was obviously done in t he
light of the interpretation placed on Section 21 of th e Code
as it existed and Section 11 of the Suits Valuation Act by this
Court in Kiran Singh v. Chaman Paswan5 followed by Hiralal
Patni v. Kali Nath6 and Bahrein Petroleum Co. Ltd. v. P.J.
Pappu4 . Therefore, there is no justification in understanding
the expression “objection as to place of suing” occurri ng in
Section 21-A as being confined to an objection only in the
territorial sense and not in the pecuniary sense. Both c ould
be understood, especially in the context of the amendment to
Section 21 brought about by the Amendment Act, as objection
to place of suing.
41. In the light of the above, it is clear that no objection to
the pecuniary jurisdiction of the court which tried OS No. 61
of 1971 could be raised successfully even in an appeal against
that very decree unless it had been raised at the e arliest
opportunity and a failure of justice or prejudice was shown.
Obviously therefore, it could not be collaterally cha llenged.
That too not by the plaintiffs therein, but by a defendant whose
alienation was unsuccessfully challenged by the plaint iffs in
that suit.”
56. Now, reverting back to facts of this case it is ap parent from
the judgment dated 22.10.2016 of Additional District Judge, that no
objection to the competence of Additional District Judge to decide the
case was taken by any of the parties. No objection having been taken to
the pecuniary jurisdiction of the Additional District Judge, Section 21 of
the Civil Procedure Code comes into play. Sub-section (2) of Section 21
89
provides that no objection as to the competence of the Court with
reference to the pecuniary limits of the jurisdiction shall be allowed by
any Appellate or Revisional Court unless conditions mentioned therein
are fulfilled. No objection has been raised by respondent tenant regarding
competence of the Court. Sub-section (2) precludes the revisi onist to
raise any objection regarding competence of the court an d further
revisional court ought not to have allowed such objection regardi ng
competence of Court of Additional District Judge to decide the suit. The
respondent tenant did not raise any objection regarding competence of
the Court and took a chance to obtain judgments in his favour on merits,
he cannot be allowed to turn-round and contend that the court of Additional
District Judge had no jurisdiction to try the Small Cause Su it and the
judgment is without jurisdiction and nullity. Section 21 has been enacted
to thwart any such objection by unsuccessful party who did not raise
any objection regarding competence of court and allowed the matter to
be heard on merits. Further, in deciding the small cause suit by Additional
District Judge, the tenant has not proved that there has been a consequent
failure of justice.
57. The High Court in the impugned judgment has not adverted to
Section 21 of the Code of Civil Procedure. In judgment of Shobhit
Nigam(Supra) also, affect of Section 21 was neither considered nor
raised. Section 21 contains a legislative policy which policy has an object
and purpose. The object is also to avoid retrial of cases on merit on basis
of technical objections.
58. There is another judgment of Single Judge of the High Court
referred to by the learned counsel for the respondent i.e. SCC Revision
No.305 of 2016, Tejumal vs. Mohd. Sarfraz, 2017 (121) ALR 392 . In
the above case, learned Single Judge had allowed the revision unde r
Section 25 against the judgment dated 12.08.2016 passed by Additional
District and Sessions Judge on the ground that the judgment of Additional
District Judge was without jurisdiction. In paragraph 6 of the judgment,
High Court had noticed judgment of this court in R.S.D.V. Finance
Company Private Limited vs. Shree Vallabh Glass Works Ltd . where
it was held that in view of Section 21(1) of the Code of Civil Procedure,
objection as to the place of suing should be taken by the party concerned
in the court of first instance at the earliest possible opportunity and the
objection to this effect shall not be allowed by the Appellate or Revisional
Court but relying on the judgment of this Court in Kiran Singh Vs.
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v.
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
Chaman Paswan , learned Single Judge held that defect of jurisdiction
whether pecuniary or territorial or to the subject matter cannot be cured
and can be set up at any stage of the proceeding.
59. We are of the view that the above view of the learned Single
Judge is neither in consonance with the judgment of this Court in Kiran
Singh’s case nor with R.S.D.V. Finance Company Private Limited
(supra) which has been noted and referred to by learned Single Judge.
Section 21 is statutory recognition of the legislative policy which cannot
be ignored or given a go-by by the litigants who ch allenges an
unfavourable decision.
60. We thus of the view that the view of the learned Single Judge
in Tejumal Vs. Mohd. Sarfraj does not lay down the correct law and
cannot be approved.
61. In the foregoing discussion, we are of the view that High
Court committed error in allowing the S.C.C. Revision file d by the
respondent tenant without taking into consideration Section 21 of the
Civil Procedure Code.
62. We thus hold that even when the court of Additional District
Judge was not competent to decide the Small Causes Suit in question on
the ground that the pecuniary jurisdiction is vested in Court of Small
Causes i.e. Civil Judge, Senior Division w.e.f. 07.12.2015, no interference
was called in the judgment of Additional District Judge in the exercise of
Revisional Jurisdiction by High Court in view of the provisions of Section
21 of Civil Procedure Code.
63. In result, the appeals are allowed. The judgment of the High
Court dated 07.12.2016 is set aside. Parties shall bear their own costs.
Kalpana K. Tripathy Appeals allowed.