Supreme Court of India
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS. & ORS.versusVISHAN DAYAL RAJPOOT & ANR.
- Citation
- 2018 INSC 970
- Decided
- 12 October 2018
- Disposal
- Appeal(s) allowed
- Bench
- A K SIKRI
Holding
The amendment makes small‑cause suits up to Rs.1 lakh cognizable only by Small Causes Courts presided by Civil Judges, rendering the ADJ without jurisdiction, but the High Court’s revision is barred by Section 21 CPC, so the ADJ’s decree stands.
Summary
The landlord filed a small‑cause suit for eviction, rent and damages against the tenant. The suit, originally valued at Rs.21,175, was later amended to Rs.27,775 and transferred to an Additional District Judge (ADJ) because its value exceeded the then pecuniary limit of Rs.25,000 for a Small Causes Court. While the suit was pending, the Uttar Pradesh Civil Laws (Amendment) Act, 2015 raised the pecuniary limit for Small Causes Courts to Rs.1 lakh, making the suit cognizable by a Civil Judge (Senior Division) and stripping the ADJ of jurisdiction. The tenant raised a revision before the High Court, which set aside the ADJ’s decree, holding the ADJ lacked jurisdiction. The Supreme Court held that the amendment indeed transferred jurisdiction to the Small Causes Court, but the High Court erred in entertaining the revision because, under Section 21 of the CPC, a party that did not raise a jurisdictional objection at the earliest opportunity cannot do so on revision unless a failure of justice is shown. Consequently, the ADJ’s judgment stands and the High Court’s order is set aside.
Issues considered
- Whether the Uttar Pradesh Civil Laws (Amendment) Act, 2015 is prospective only or also affects pending small‑cause suits, thereby depriving the Additional District Judge of jurisdiction over a suit valued below Rs.1 lakh.
- Whether a Court of Additional District Judge, even when invested with Small Causes jurisdiction, could validly decide a small‑cause suit of valuation less than Rs.1 lakh after the amendment.
- Whether, notwithstanding the ADJ’s lack of jurisdiction, the High Court could set aside its decree in revision, in view of Section 21 of the Code of Civil Procedure which bars jurisdictional objections not raised in the court of first instance.
Legislation cited
- Bengal, Agra and Assam Civil Courts Act, 1887s. 25
- Code of Civil Procedure, 1908s. 15, s. 21
- Provincial Small Cause Courts Act, 1887s. 15
- Suit Valuation Act, 1887s. 11
- Uttar Pradesh Civil Laws (Amendment) Act, 2015s. 1, s. 2, s. 3, s. 4
Subjects
jurisdictionsmall causes courtpecuniary jurisdictionsection 21 CPCstatutory interpretationcognizanceprospective legislationrevisioneviction suitlandlord‑tenant
Judgment
[2018] 13 S.C.R. 47 47
OM PRAKASH AGARWAL SINCE DECEASED A
THR. LRS. & ORS.
v.
VISHAN DAYAL RAJPOOT & ANR.
(Civil Appeal Nos. 9051-9052 of 2018) B
OCTOBER 12, 2018
[A. K. SIKRI AND ASHOK BHUSHAN, JJ.]
Jurisdiction:
Jurisdiction of Additional District Judge (as Small Causes C
Court) – To decide the cases pending before it – After amendment
by Uttar Pradesh Civil Laws (Amendment) Act, 2015 – Suit seeking
decree of eviction, rent and damages – Filed before Small Causes
Court [Civil Judge (Senior Division)] – Suit transferred to Additional
District Judge on the ground that value of the suit property being
D
Rs.27,775/- was more than the pecuniary jurisdiction of the Small
Causes Court i.e. Rs.25,000/- – During pendency of the suit before
Additional District Judge, by Amendment Act, pecuniary jurisdiction
of the Small Causes Court was raised from Rs.25,000 to Rs. One
lakh – Defendants did not raise any objection as to maintainability
of the suit before Addl. District Judge due to lack of jurisdiction in E
view of the Amendment Act – Suit was decided on merit and was
decreed – Defendants filed Revision – High Court allowed the
Revision holding that order passed by Addl. District Judge was
without jurisdiction – On appeal, held:In view of s. 15 of CPC read
with provisions of Provincial Small Cause Courts Act, 1887 and
F
Bengal, Agra Assam Civil Courts Act, 1887, legislative scheme is
clear that small cause cases upto value of Rs. 1 lakh should be
taken cognizance by Small Cause Courts presided by Civil Judge
and cases having value of more than Rs. 1 lakh by Disrtrict Judge/
Addl. District Judge having power of Small Cause Court – Section
15(2) of Provincial Small Cause Courts Act provides that suit shall G
be cognizable by Court of Small Causes – The word cognizable
takes into its fold institution, hearing and decision of a case
cognizable by it – The statement of objects and reasons explains
the reason for increase of pecuniary jurisdiction, but use of words
“for institution” therein cannot control the express language of the
H
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48 SUPREME COURT REPORTS [2018] 13 S.C.R.
A statutory provisions – Thus, Addl. District Judge did not have
jurisdiction to try the present case – However, in view of the provision
u/s. 21 of CPC and in view of the fact that no objection was taken
by defendant to the jurisdiction of Addl. District Judge before that
Court, he is precluded from raising such objection in Revision –
Therefore, even though Addl. District Judge was not competent to
B
decide the suit, no interference was called for in its judgment in
exercise of Revisional jurisdiction by High Court – Code of Civil
Procedure, 1908 – ss. 15 and 21 – Provisional Small Cause Courts
Act, 1887 – Bengal, Agra, Assam Civil Courts Act, 1887 – Uttar
Pradesh Civil Laws (Amendment) Act, 2015.
C Interpretation of Statutes:
Rules of interpretation – Held: Legislative provisions have to
be interpreted in a manner, which may advance the object and
purpose of the Act.
D Statement of objects and reasons – As an aid to interpret the
statute – Held: 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 statute by its ordinary language is obscure
and ambiguous – Words in statements of objects and reasons, cannot
control the express language of the statutory provisions.
E
Judicial Propriety:
Conflicting views by Single Judge Benches of High Court –
Propriety – Held: Instead of giving conflicting view, it is better to
achieve certainty by an authoritative opinion by High Court.
F Allowing the appeals, the Court
HELD: 1.1 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
following the procedure less cumbersome as compared to those
G applicable in the regular civil courts. By U.P. Act No. 37 of 1972,
the cases by a lessor 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
H
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 49
VISHAN DAYAL RAJPOOT & ANR.
in Section 25 of the Bengal, Agra & Assam Civil Courts Act, A
1887 by U.P. Act No. 37 of 1972 empowered the State Government
to confer upon any District Judge or Additional 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
B
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 C
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
Cause Suit”, a forum had to be created for deciding such cases
as small cause cases. [Para 30][72-A-E]
1.2 The expression “irrespective of their value” used in D
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 small causes cases and should be dealt as a
small cause case. By subsequent amendment, the Small Causes
Courts presided by Civil Judge became empowered to decide
cases of small cause upto twenty-five thousand rupees and cases E
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
presided by Civil Judge and those of small cause cases presided F
by District Judge or Additional District Judge. The dividing line
was only valuation of small cause cases relating to suits by lessor
against the lessee. 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 suits by G
lessor against the lessee of any valuation could be filed in any
Small Causes Court. [Para 30][72-E-H; 73-A]
1.3 It is true that District Judge or Additional District Judge
functioning as Small Causes Courts can take cognizance of all
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50 SUPREME COURT REPORTS [2018] 13 S.C.R.
A suits irrespective of their value. But use of the words
“irrespective of their value” was in contradiction of the pecuniary
value, which was given to Judge of Small Causes Courts presided
by Civil Judge. The 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
B
two courts in taking cognizance of small cause cases. This 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. [Para 31][73-B-C]
1.4 As per Section 15 of the Code of Civil Procedure, suit
C 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 legislative Scheme, the suit is not to be taken
cognizance by the District Judge or Additional District Judge,
D which has valuation upto Rs. 1 lakh. Even if Section 15 of 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
E cases 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 have been invested with the power
of Small Cause Courts. Unless the above legislative intent and
F Scheme is followed, there shall be confusion and inconsistency.
The legislative provisions have to be interpreted in a manner,
which may advance the object and purpose of the Act. When
clear dichotomy regarding taking cognizance of small causes suits
presided by Civil Judge and by District Judge or Additional
District Judge have been provided for, the said dichotomy and
G separation to take cognizance of cases has to be followed to further
the object and purpose of legislation. [Para 35][78-D-H]
1.5 When the Court of District Judge or Additional District
Judge could no longer take cognizance of small cause suits of
having less than Rs. 1 lakh valuation, it was no longer in the
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VISHAN DAYAL RAJPOOT & ANR.
competence of Small Cause Court presided by District Judge or A
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 decide the suits.
[Para 36][79-B-C]
1.6 Section 15 of the Provincial Small Cause Courts Act, B
1887 bears the title “Cognizance of Suits by Courts of Small
Causes”. Sub-section (1) of Section 15 provides that a Court of
Small Causes shall not take cognizance of the suits specified in
the Second Schedule as suit excepted from the cognizance of
Court of Small Causes. Sub-section (2)(as applicable in Uttar
Pradesh) provides that all suits of the civil nature of which the C
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 D
provision is “shall be cognizable by 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.
[Paras 38 and 42][79-E-G; 80-G]
Black’s Law Dictionary; Advanced Law Lexicon by P. E
Ramanatha Aiyar – referred to.
1.7 When the plain word in the statute i.e. Section 15(2)
uses the word “cognizable” “statements of objects and reasons”
which uses the word “institution” shall not whittle down, the word
‘cognizable’ as used in Section 15(2). It is true that statement of F
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 institution of civil
suits and appeals. The amendment has raised pecuniary limits in
Provincial Small Cause Courts Act, 1887. The statement of G
objects and reasons 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.
[Paras 42 and 43][81-A, E, F]
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52 SUPREME COURT REPORTS [2018] 13 S.C.R.
A 1.8 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 statute by its ordinary language is
obscure and ambiguous. [Para 44][81-G]
1.9 The statement of object of U.P. Civil Laws (Amendment)
B 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. [Para 46][82-F-G]
1.10 The expression ‘cognizance’ used in Section 15 shall
C mean and include institution, hearing and decision of the case.
When statute provides that cognizance of particular cause is to
be taken by a particular court, no other court can take cognizance
of the cause, since legislature never creates or provides for
parallel jurisdiction in two different courts for taking cognizance
of a cause. When Section 15 provides that all suits of civil
D 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.
[Para 46][82-G-H; 83-A]
1.11 The proviso to sub-section (2) provides that figure of
E 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. [Para 47][83-B-C]
F
1.12 Additional District Judge to whom small causes suit
in question was transferred since its valuation was more than
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
G i.e. Court of Civil Judge, Senior Division.[Para 47][83-C-D]
State of Himachal Pradesh v. M. P.Gupta (2004) 2 SCC
349 : 2003 (6) Suppl. SCR 541; S. S. Bola v. B. D.
Sardana, (1997) 8 SCC 522 : [1997] 2 Suppl. SCR
507; Subha Ram v. State of Maharashtra, (2003) 1 SCC
H 506 : [2002] 4 Suppl. SCR 65 ; Bhaiji v. Sub-Divisional
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 53
VISHAN DAYAL RAJPOOT & ANR.
Officer, (2003) 1 SCC 692 : [2002] 5 Suppl. SCR 116 A
– relied on.
Pankaj Hotel vs. Bal Mukund, (2018) 1 ALJ 2017 –
not approved.
Shobhit Nigam vs. Smt. Batulan and Another SCC
Revision No. 278 of 2016 – partly approved. B
M.P. Mishra vs. Sangam Lal Agarwal, AIR 1975
Allahabad 425 – referred to.
2.1 The policy underlying Section 21 of Code of Civil
Procedure is that when the case has been tried by a court on C
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. [Para 50][84-E-F]
D
2.2 It is apparent from the judgment 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 provides that no E
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. Sub-section (2) precludes the revisionist to
raise any objection regarding competence of the court and further F
revisional court ought not to have allowed such objection
regarding 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 G
had no jurisdiction to try the Small Cause Suit 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
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54 SUPREME COURT REPORTS [2018] 13 S.C.R.
A suit by Additional District Judge, the tenant has not proved
that there has been a consequent failure of justice.
[Para 56][88-G-H; 89-A-D]
2.3 The High Court in the impugned judgment has not
adverted to Section 21 of the Code of Civil Procedure. Section
B 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. [Para 57][89-E]
2.4 Section 21 is statutory recognition of the legislative
policy which cannot be ignored or given a go-by by the litigants
C who challenges an unfavourable decision. Therefore, High Court
committed error in allowing the Revision filed by the respondent
tenant without taking into consideration Section 21 of the Civil
Procedure Code. [Paras 59 and 61][90-B, D]
Kiran Singh v. Chaman Paswan AIR 1954 SC 340 :
D [1955] SCR 117; R.S.D.V. Finance Company Private
Limited v. Shree Vallabh Glass Works Ltd. (1993) 2 SCC
130 : [1993] 1 SCR 455; Harshad Chiman Lal Modi
v. DLF Universal Ltd. (2005) 7 SCC 791 : [ 2007] 4
SCR 150; Subhash Mahadevasa Habib v. Nemasa
Ambasa Dharmadas (2007) 13 SCC 650 : [2007]
E 4 SCR 150 – relied on.
Tejumal v. Mohd. Sarfraz, 2017 (121) ALR 392 – not
approved.
Hiralal v. Kalinath and AIR 1963 SC 634, Bahrain
F Petroleum Co. v. P. J. Pappu and Another AIR (1962)
SC 199 : [1962] SCR 747 – referred to.
3. Thus 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,
G
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.
[Para 62][90-E]
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VISHAN DAYAL RAJPOOT & ANR.
4. It is always better to achieve certainty by an authoritative A
opinion by the High Court instead of giving conflicting views by
different Single Judges which may confuse the litigants, lawyers
and sub-ordinate courts in applying the law. [Para 48][83-F]
Case Law Reference
B
SCC Revision No. 278 of 2016 partly approved Para 2
(2018) 1 ALJ 2017 not approved Para 2
AIR 1975 Allahabad 425 referred to Para 31
C
[2003] 6 Suppl. SCR 541 relied on Para 41
[1997] 2 Suppl. SCR 507 relied on Para 44
[2002] 4 Suppl. SCR 65 relied on Para 45
D
[2002] 5 Suppl. SCR 116 relied on Para 45
[1955] SCR 117 relied on Para 50
[1962] SCR 747 referred to Para 52
E
[1993] 1 SCR 455 relied on Para 53
[2007] 4 SCR 150 relied on Para 54
2017 (121) ALR 392 not approved Para 58
F
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 9051-
9052 of 2018
From the Judgment and Order dated 07.12.2016 of the High Court
of Judicature at Allahabad in S.C.C. Revision Nos. 404 and 407 of 2016
A. K. Singla, Sr. Adv., Siddharth Mittal, Nayan Nepal, K. Singhal, G
Pankaj Gupta, Advs. for the Appellants.
Kanhaiya Singhal, S. U. Khan, Praveen Jain, S. K. Tyagi, Advs.
for the Respondents.
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56 SUPREME COURT REPORTS [2018] 13 S.C.R.
A The Judgment of the Court was delivered by
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 respondents(tenant)
challenging the decree of eviction passed by Additional District Judge,
B Firozabad. The issue which has arisen in these appeals pertains 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 appeals
are:-
C The appellant, the landlord of premises in question filed Small
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
D 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 ground that
E 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, rent and
compensation was decreed. Aggrieved against the judgment of
Addl. District Judge, revision under Section 25 of the Provincial
F 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
G 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
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VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
without jurisdiction in view of Uttar Pradesh Civil Laws A
(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 in
SCC Revision No. 278 of 2016 – Shobhit Nigam Vs. Smt.
B
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 C
Revision. It is submitted that Uttar Pradesh Civil Laws (Amendment)
Act, 2015 w.e.f. 07.12.2015 has only enhanced the jurisdiction for
institution of small causes suit, which amendment shall have no effect
on the pending cases. In the Uttar Pradesh Civil Laws (Amendment)
Act, 2015, there was no stipulation that pending cases of having valuation D
of more than Rs.25,000/- before the Court of District Judge should be
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. E
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. F
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 G
by the High Court in Pankaj Hotel Vs. Bal Mukund, (2018) 1 ALJ
2017. The principles and objections of pecuniary jurisdiction as
contemplated in Section 21(2) is not attracted in the present 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
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58 SUPREME COURT REPORTS [2018] 13 S.C.R.
A 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:
B i. Whether the Uttar Pradesh Civil Laws (Amendment) Act,
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
C 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
D 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
E 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
F 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 relevant statutory
provisions relevant for the subject.
7. Two enactments namely (i) The Bengal, Agra, Assam Civil
G
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 enacted to
consolidate and amend the law relating to Civil Courts in Bengal, the
H
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 59
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
North-Western Provinces and Assam. Section 3 of the Act provides for A
Constitution of Civil Courts. Section 4 relates to number of District
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 or Subordinate
Judge (for the State of Uttar Pradesh, the word “Subordinate” was
B
substituted with the word “Civil”). Section 19 dealt with extent of
jurisdiction of Munsif. Section 19 as applicable in the State 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 C
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 jurisdiction
shall exceed to all like suits of such value not exceeding twenty
five thousand rupees as may be specified in the notification.” D
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 official E
Gazette, confer within such local limits as it thinks fit, upon
any Civil Judge or Munsif, the jurisdiction of a Judge of a
Court of Small Causes under the Provincial Small Cause
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 F
conferred:
Provided that in relation to suits of the nature referred 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 thousand G
rupees.]
[(2) The High Court 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
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60 SUPREME COURT REPORTS [2018] 13 S.C.R.
A under the Provincial Small Cause Courts Act, 1887, for the
trial of all suits(irrespective of their value), by the lessor for
the eviction of a lessee from a building after the 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
B
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 the same meaning as in Article (4)
C in the Second Schedule of the said Act.]
[(3)]x x x ]
[(4) Where the jurisdiction of a Judge of a Court of Small
Causes is conferred upon any District Judge of Additional
D District Judge by notification under section, then,
notwithstanding anything contained in section 15 of the
Provincial Small Cause Courts Act, 1887, all suits referred to
in sub-section (2) shall be cognizable by Court of Small
Causes.]”
E 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 suggests, the
Provincial Small Cause Courts Act 1887 was enacted to deal with “Small
Causes”. The Object of the Act was to create a separate court for
dealing with small causes. The object obviously was that small causes
F 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 in different areas
G with the same object, i.e., to deal with cases of small causes effectively
and summarily. The Statement of Objects and Reasons of Provincial
Small Cause Courts Act 1887 was to the following effect:-
“The suits cognizable in Courts of Small Causes are subject 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
H
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 61
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
property, or for the value of such property, or for damages, when A
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
B
subject-matter of the original suit does not exceed five hundred
rupees”. Since Section 6 of the Act of 1865 was enacted, a vast
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, C
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 the suit. It
appears to the Government of India that the conflicting
constructions placed on Section 6, of which some are due to the
D
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 E
exceptions. This Bill has accordingly been prepared, its primary
object being to remove the doubts now felt as to the effect of
Section 6, Act XI of 1865; and, as several sections and parts of
sections of that Act have, from time to time, been repealed and
other sections are obsolete as regards both expression and utility,
F
it has been considered desirable to repeal the Act and re-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:-
G
“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.”
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62 SUPREME COURT REPORTS [2018] 13 S.C.R.
A 11. The object as is delineated from Statements of Objects of
enactment was to provide for speedy machinery for small 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 rules and
orders of the C.P.C. for small causes cases. Order L of the C.P.C. is as
B
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 exercising the
C jurisdiction of a Court of Small Causes [under the said Act or
Law], [or to Courts in [any part of India to which the said Act
does not extend] exercising a corresponding jurisdiction] that is to
say-
(a) so much of this Schedule as relates to-
D
(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;
E (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);
F 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);
G Order XLVII, rules 2, 3, 5, 6, 7 (review);
Order LI.”
12. Section 5 provided for establishment of small causes courts
by the State Government. Chapter III of the Act deals with “Jurisdiction
of Courts of Small Causes”. Section 15 of the Act provides: -
H
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VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
15. Cognizance of suits by Courts of Small Causes-(1) A Court A
of Small Causes shall not take cognizance of the suits specified
in the Second Schedule as suits expected from the cognizance
of a Court of Small Causes.
(2) Subject to the exceptions specified in that Schedule and
to the provisions of any enactment for the time being in force, B
all suits of a civil nature of which the value does not exceed
five hundred rupees shall be cognizable by a Court of Small
Causes.
(3) Subject as aforesaid, the [State Government] may, by order
in writing, direct that all suits of a civil nature of which the C
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 D
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 E
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 amendment
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), F
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 cause G
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
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64 SUPREME COURT REPORTS [2018] 13 S.C.R.
A are governed by U. P. Act XIII of 1972, may be covered thereby.
It is further proposed that in respect of such suits the ordinary
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 that
cases of a higher value may be decided by District Judges sitting
B
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”
C
14. As per Section 15(1), a Court of Small Causes was not
competent to take cognizance of the suits specified in the Second
Schedule. Clause (4) of the Second Schedule of the Act was to the
following effect:-
D “(4) a suit for the possession of immoveable property or for the
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:-
E “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 as the
principal Act, in sub-section (3), the following proviso shall be
inserted, namely:
F “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
G
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.”
H
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VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
3. Amendment of Section 25 of Act IX of 1887.— In Section A
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 B
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 C
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. D
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 E
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:- F
“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, G
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
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66 SUPREME COURT REPORTS [2018] 13 S.C.R.
A 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 :
B “(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 lessor
C for the eviction of a lessee from a building after the
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.
D
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
E 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
F Civil Judge [now designated as Civil Judge (Senior Division)]. As noted
above, Court of Small Causes were empowered to take cognizance of
small causes having particular pecuniary jurisdiction only. Section 25 of
the Bengal, Agra and Assam Civil Courts Act, 1887 empowered the
State Government by notification to confer upon any Subordinate Judges
and Munsifs with jurisdiction of Small Cause Court for the trial of suits
G 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
H
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 67
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
District Judge or Additional District Judge the jurisdiction of a Judge of A
Small Causes Court for the trial of all suits(irrespective of their value),
by the lessor for the eviction of a lessee of a building 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 B
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 force,
all suits of a civil nature of which the value does not exceed
five thousand rupees shall be cognizable by a Court of Small C
Causes;
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 D
compensation for use and occupation thereof after the
determination of the lease, the reference in this sub-section
to five thousand rupees shall be construed as a reference to
twenty-five thousand rupees.
Explanation- For the purposes of this sub-section, the E
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 Procedure
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 F
(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
G
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:-
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68 SUPREME COURT REPORTS [2018] 13 S.C.R.
A CHAPTER – I
PRELIMINARY
1.(1) This Act may be called the Uttar Pradesh Civil Laws
(Amendment) Act, 2015,
(2) It shall extend to whole of Uttar Pradesh.
B
CHAPTER – II
Amendment of Bengal, Agra and Assam, Civil Courts Act-
1887.
2. Bengal, Agra and Assam, Civil Courts Act-1887 hereinafter
C 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 thousand
rupees” the words “five lakh rupees” shall be substituted.
D
3. In section 21 of the principal Act, in sub-section (1), in
clause (b)-
(a) for the words “one lakh rupees” the words “five lakh
rupees” shall be substituted; and
E (b) for the words “five lakh rupees” the words “twenty five
lakh rupees” shall be substituted.
CHAPTER - III
Amendment of the Provincial Small Cause Courts Act, 1887
F 4. In Section 15 of the Provincial Small Cause Courts Act,
1887,-
(a) in sub-section(2) for the words “five thousand rupees”
the words “twenty five thousand rupees” shall be substituted;
(b) in the proviso to sub-section (2) for the words “twenty
G 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
H
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 69
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
in the State of U.P. is senior-most Civil Judge, working in the district. A
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 suit 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 parties raised any
B
objection with regard to hearing of suit by Additional District 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. C
21. One of the grounds taken before the High Court was that in
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. D
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:- E
“...The controversy as to the jurisdiction of the Judge Small
Causes Court has been decided by this Court, vide judgment
dated 29.08.2016 passed in SCC Revision No.278 of 2016,
Shobhit Nigam Vs. Smt. Batulan and another. It has been
held that consequent to the amendment, in Section 15 of the F
Provincial Small Causes Court Act, an SCC Suit having a
valuation between Rs.25,000/- to Rs.1 lac shall lie before the
Small Cause Court presided over by a Civil Judge(Senior
Division). The suits having a valuation of more than Rs.1 Lac
would lie before the Additional District Judge/District Judge
constituting a Small Causes Court. G
Shri Satendra Kumar-I, who has filed their counter affidavit
in Court today, has not been able to effectively rebut the
submissions made by the counsel for the revisionist.
H
70 SUPREME COURT REPORTS [2018] 13 S.C.R.
A 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:-
B 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 after recovering
C 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 permitting the
D valuation to be enhanced to Rs.27,775/-. The suit thereafter 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
E was pending could still have pecuniary jurisdiction to decide the suit or
suit ought to have been transferred back to the court of Civil Judge,
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
F and another (supra).
27. In above case also the valuation of small causes suit was
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. Revision
filed in the High Court, the same very argument was pressed that the
G
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 taken
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
H
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 71
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
the objects and reasons does not confine to institution of civil suits only A
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. The High
Court in Shobhit Nigam’s Case held that assumption of jurisdiction of
B
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/ C
- 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. D
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 E
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. F
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 G
jurisdiction of Small Causes Court after amendment by Uttar 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. H
72 SUPREME COURT REPORTS [2018] 13 S.C.R.
A 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 following 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 lessor
for eviction of lessee and for recovery of rent in respect of the period of
B
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 Civil
Courts Act, 1887 by U.P. Act No. 37 of 1972 empowered the State
C Government to confer upon any District Judge or Additional 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.
D
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 Cause Suit”, a
E forum had to be created for deciding such cases as small cause 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 small causes
cases and should be dealt as a small cause case. By subsequent
amendment, the Small Causes Courts presided by Civil Judge become
F
empowered to decide cases of small cause upto twenty-five thousand
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 presided by
G 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 lessee. 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
H
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 73
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
suits by lessor against the lessee of any valuation could be filed in any A
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 “irrespective of their
value” was in contradiction of the pecuniary value, which was given to B
Judge of Small Causes Courts presided by Civil Judge. The 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 C
cognizance of cases, which, according to statutory Scheme can be taken
only by small causes courts presided by Civil Judge. It is relevant to
notice that the Allahabad High Court had occasion to consider 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. D
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 cause case is
more than five thousand rupees, hence Additional District Judge could
not have decided the case as small cause case rather it ought to have E
been decided as a normal civil suit. In the above context, provision 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 F
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 G
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) shall be
cognizable by Court of Small Causes.” H
74 SUPREME COURT REPORTS [2018] 13 S.C.R.
A 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
B noticed here. Notification No. 4111 (8)/VII-A-580/72, dated
September 22, 1972, published in Uttar Pradesh Gazette, dated
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
C 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
D 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
E Courts of Judge. Small Causes, Bareilly, Moradabad, Meerut,
Gorakhpur, Aligarh, Kanpur, Allahabad, Varanasi, Agra,
Lucknow, and the Court of additional Judge, Small Causes,
Lucknow.”
7. The State Government issued another notification on the same
F 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
G 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.”
H
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 75
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
8. By Notification No. 525 dated 25-10-1972 the High Court A
conferred “upon all the District Judges and Additional District
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).”
B
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:-
C
“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 lessees 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 could be D
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 lessor for
the eviction of a lessee from a building after the determination of E
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 F
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 G
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 Laws
H
76 SUPREME COURT REPORTS [2018] 13 S.C.R.
A 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, Meerut,
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 lessors
B
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
C for the trial of suits for eviction of lessees and for recovery 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 aforesaid
Notification dated 25-10-1972 issued by this Court.
D 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
E 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
F 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 by the
District Judge or the Additional District Judge will be contrary to
G the clear expression used in Sub-section (2) of Section 25
“irrespective of their value”. Learned counsel for the applicant
placed reliance on the pronouncement of the Supreme Court
reported in Raja Soap Factory v. S. P. Shantharaj [AIR (1965)
SC 1449. In my view, the said pronouncement does not support
H
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 77
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
the contention on behalf of the applicant. Counsel also sought to A
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
B
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 C
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
D
opinion this contention is not valid. In Mt. Sukha v. Raghunath
(AIR 1917 All. 62); D. D. Vidyarthi v. Ram Pearey Lal (AIR
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 E
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 F
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 G
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. H
78 SUPREME COURT REPORTS [2018] 13 S.C.R.
A 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 decide the
suit, whose valuation was less than Rs. 1 lakh? We may also 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
B
to try it. Section 15 of Code of Civil Procedure is as follows:-
“Every suit shall be instituted in the Court of the lowest grade
competent to try it.”
35. The purpose of Section 15 is obvious that even though more
C 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
D 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 legislative
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
E 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 cases should be taken
cognizance by Small Cause Courts presided by Civil Judge upto the
F valuation of Rs. 1 lakh and cases having valuation of more than Rs. 1
lakh by District Judge or Additional District Judge, who have been
invested with the power of Small Cause Courts. Unless the above
legislative intent and Scheme is followed, there shall be confusion and
inconsistency. The legislative provisions have to be interpreted in a
G manner, which may advance the object and purpose of the Act. When
clear dichotomy regarding taking cognizance of small causes 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.
H
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 79
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
36. In Pankaj Hotel case (supra), the Court took the view that A
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.
B
When the Court of District Judge or Additional District Judge could no
longer take cognizance of small cause suits of having less 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 decide the suits. C
It is a different matter that the Court of District Judge or Additional
District Judge when proceeded to decide the small cause suits 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 deal with
D
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 E
bears the title “Cognizance of Suits by Courts of Small Causes”. Sub-
section (1) of Section 15 provides that a Court of Small Causes shall not
take cognizance of the suits specified in the Second Schedule as suit
excepted from the cognizance of Court of Small Causes. Sub-section
(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 F
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 G
‘Cognizable by Court of Small Causes’?
39. The word ‘Cognizance’ has been defined in Black’s Law
Dictionary in following manner: -
H
80 SUPREME COURT REPORTS [2018] 13 S.C.R.
A “Cognizance-
(1) A court’s right and power to try and to determine cases;
Jurisdiction,
(2) The taking of judicial or authoritative notice.
B 40. Advanced Law Lexicon by P.Ramanatha Aiyar defines
‘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 largest
C import:embracing all power, authority and jurisdiction. The
word “cognizance” is used in the sense of “right to take notice
of and determine a cause.” Taking cognizance does not
involve any formal action, or indeed action of any kind, but
occurs as soon as a Magistrate, as such, applies his mind of
the suspected commission of an offence…..”
D
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: -
E
“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 taking notice
F of it or exercising jurisdiction if it is in respect of a public
servant who is accused of an offence alleged to have 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
G 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 (Amendment)
Act, 2015 and has given emphasis on word “for institution” and concluded
that amendment is prospective in nature and is applicable only to suits
H
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 81
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
and appeals being instituted after the amendment. When the plain word A
in the statute i.e. Section 15(2) uses the word “cognizable” whether
“statements of objects and reasons” which uses the word “institution”
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: -
B
“STATEMENT OF OBJECTS AND REASONS
WHEREAS the value of the subject matters brought to the
courts has increased substantially, the pecuniary jurisdiction
of the Civil Courts as well as those of Small Cause Courts in
the State of Uttar Pradesh requires to be raised for institution C
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 better
administration of Justice. D
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 E
jurisdiction of the Civil Courts as well those of Small Causes Courts in
State of Uttar Pradesh requires to be raised for the institution of civil
suits and appeals. The amendment has raised pecuniary limits in Provincial
Small Cause Courts Act, 1887. The statement of objects and reasons
explains the reason for increase of pecuniary jurisdiction but use of word
‘for institution’ in statement of object cannot control the express language F
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 statute by its ordinary G
language is obscure and ambiguous. In paragraph 176, following was
laid down: -
“176…..But it is a cardinal rule of interpretation that the
Statement of Objects and Reasons of a statute is to be looked
H
82 SUPREME COURT REPORTS [2018] 13 S.C.R.
A into as an extrinsic aid to find out the legislative intent only
when the meaning of the statute by its ordinary language is
obscure or ambiguous. But if the words used in a statute are
clear and unambiguous then the statute itself declares the
intention of the legislature and in such a case it would not be
permissible for a court to interpret the statute by examining
B
the Statement of Objects and Reasons for the statute in
question.”
45. In Subha Ram vs. state of maharashtra, (2003) 1 SCC
506, this court again laid down that statement of objects and reasons
can be looked into for limited purpose of ascertaining condition prevailing
C 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
D permissible for understanding the background, the antecedent
state of affairs, the surrounding circumstances in relation to
the statute, and the evil which the statute sought to remedy.
The weight of judicial authority leans in favour of the view
that the Statement of Objects and Reasons cannot be utilized
E for the purpose of restricting and controlling the plain meaning
of the language employed by the legislature in drafting a
statute and excluding from its operation such transactions
which it plainly covers. (See Principles of Statutory
Interpretation by Justice G.P. Singh, 8th Edn., 2001, pp. 206-
09.)”
F
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
G institution hearing and decision of the case. When statute provides that
cognizance of particular cause is to be taken by a particular court, no
other court can take cognizance of the cause, since legislature never
creates or provides for parallel jurisdiction in two different courts for
taking cognizance of a cause. When Section 15 provides that all suits of
H
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 83
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
civil nature of which the value does not exceed Rs.25,000/- “shall be A
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 B
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 lac is
cognizable by Court of Small Causes, obviously, no other court can take
cognizance. Additional District Judge to whom small causes suit in C
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 D
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 E
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 judgments 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 F
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
G
49. It is the submission of learned counsel for the appellant that
even if the Additional District Judge was not competent to decide 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
H
84 SUPREME COURT REPORTS [2018] 13 S.C.R.
A Civil Procedure relates to objection to jurisdiction. Section 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 Revisional
Court unless such objection was taken in the Court of first
B instance at the earliest possible opportunity and in all cases
where issues are settled at or before such settlement, and
unless there has been a consequent failure of justice.
[(2) No objection as to the competence of a Court with
reference to the pecuniary limits of its jurisdiction shall be
C allowed by any Appellate or Revisional Court unless such
objection was taken in the Court of first instance at the earliest
possible opportunity, and, in all cases where issues are settled,
at or before such settlement, and unless there has been a
consequent failure of justice.
D (3) No objection as to the competence of the executing Court
with reference to the local limits of its jurisdiction shall be
allowed by any Appellate or Revisional Court unless such
objection was taken in the executing Court at the earliest
possible opportunity, and unless there has been a consequent
failure of justice.]”
E
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
F 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: -
G “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 liable
to be reversed purely on technical grounds, unless it had
resulted in failure of justice, and the policy of the legislature
H
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 85
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
has been to treat objections to jurisdiction both territorial A
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 Section 11
B
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 C
of the District Judge in appeal should be ignored. The appeal in the High
Court be treated as first appeal. It was contended that appellant 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 D
of appeal is no doubt a substantive right, and its deprivation is a
serious prejudice; but the appellants have not been deprived 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 E
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 F
of appeal against the judgment of the Subordinate Court, which
they have not been, but that an appeal on the facts against that
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 G
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 H
86 SUPREME COURT REPORTS [2018] 13 S.C.R.
A Courts have considered the matter in Full Benches, and have come
to the conclusion that mere change of forum is not a prejudice
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………”
B
52. The above principle has been reiterated by this Court in AIR
(1962) SC 199, Hiralal vs. Kalinath and AIR 1963 SC 634, Bahrain
Petroleum Co. vs. P.J.Pappu and Another.
53. This court in (1993) 2 SCC 130, R.S.D.V. Finance Company
C 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
D had jurisdiction to entertain and decide the suit. Sub-section
(1) of Section 21 of the Code of Civil Procedure provides that
no objection as to the place of suing shall be allowed by any
appellate or revisional court unless such objection was taken
in the court of first instance at the earliest possible opportunity
and in all cases where issues are settled at or before such
E settlement and unless there has been consequent failure 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 following
conditions:
F (i) That such objection was taken in the court of 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.
G
8. In the present case though the first two conditions are
satisfied but the third condition of failure of justice is not
fulfilled. As already mentioned above there was no dispute
regarding the merits of the claim. The defendant has admitted
the deposit of Rs 10,00,000 by the plaintiff, as well as the
H
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 87
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
issuing of the five cheques. We are thus clearly of the view A
that there is no failure of justice to the defendant by decreeing
of the suit by the learned Single Judge of the Bombay High
Court, on the contrary it would be totally unjust and failure
of justice to the plaintiff in case such objection relating to
jurisdiction is to be maintained as allowed by the Division
B
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: -
C
“30…………The jurisdiction of a court may be classified into
several categories. The important categories are (i) territorial
or local jurisdiction; (ii) pecuniary jurisdiction; and (iii)
jurisdiction over the subject-matter. So far as territorial and
pecuniary jurisdictions are concerned, objection to such
jurisdiction has to be taken at the earliest possible opportunity D
and in any case at or before settlement of issues. The law is
well settled on the point that if such objection is not taken 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 E
no jurisdiction over the subject-matter of the suit by reason
of any limitation imposed by statute, charter or commission,
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 F
v. Nemasa Ambasa Dharmadas, this court held that there is distinction
between lack of inherent jurisdiction and objection to territorial 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 G
as to place of the suing can be allowed by even an appellate
or revisional court unless such objection was taken in the
court of first instance at the earliest possible opportunity and
unless there has been a consequent failure of justice. In 1976,
the existing section was numbered as sub-section (1) and sub-
H
88 SUPREME COURT REPORTS [2018] 13 S.C.R.
A section (2) was added relating to pecuniary jurisdiction by
providing that no objection as to competence of a court with
reference to the pecuniary limits of its jurisdiction 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
B
failure of justice………
37. As can be seen, Amendment Act 104 of 1976 introduced
sub-section (2) relating to pecuniary jurisdiction and put it
on a par with the objection to territorial jurisdiction and the
competence to raise an objection in that regard even in an
C appeal from the very decree. This was obviously done in the
light of the interpretation placed on Section 21 of the 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.
D Pappu4. Therefore, there is no justification in understanding
the expression “objection as to place of suing” occurring in
Section 21-A as being confined to an objection only in the
territorial sense and not in the pecuniary sense. Both could
be understood, especially in the context of the amendment to
Section 21 brought about by the Amendment Act, as objection
E 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 earliest
F opportunity and a failure of justice or prejudice was shown.
Obviously therefore, it could not be collaterally challenged.
That too not by the plaintiffs therein, but by a defendant whose
alienation was unsuccessfully challenged by the plaintiffs in
that suit.”
G 56. Now, reverting back to facts of this case it is apparent 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
H the Civil Procedure Code comes into play. Sub-section (2) of Section 21
OM PRAKASH AGARWAL SINCE DECEASED THR. LRS.v. 89
VISHAN DAYAL RAJPOOT & ANR. [ASHOK BHUSHAN, J.]
provides that no objection as to the competence of the Court with A
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 revisionist to
raise any objection regarding competence of the court and further
B
revisional court ought not to have allowed such objection regarding
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 Suit and the C
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
D
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 E
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 under F
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 G
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.
H
90 SUPREME COURT REPORTS [2018] 13 S.C.R.
A 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
B 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 challenges an
unfavourable decision.
C 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 filed by the
D 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
E 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
F Court dated 07.12.2016 is set aside. Parties shall bear their own costs.
Kalpana K. Tripathy Appeals allowed.
G
H
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