TaxTMI 
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2018 (10) TMI 2059
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....e (Senior Division), Small Cause Court, Firozabad praying for decree of eviction, rent and damages. By order dated 05.04.2010 passed by District Judge, the suit was transferred to the Court of Additional 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 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 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 s....
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.... competent to decide Small Causes Suit, which has valuation upto Rs. 1 lakh. To the view taken by the High Court in Shobhit Nigam's case (supra), there is a contrary view taken by the High Court in Pankaj Hotel Vs. Bal Mukund, (2018) 1 ALJ 2017. The principles and objections of pecuniary 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 of Rs. 1 lakh to the Civil Judge (Senior Division). He submits that special leave petition deserves to be dismissed. 5. From the above submissions of learned counsel for the parties and the pleadings on record, following are the issues, which arise for consideration in this appeal: (i) Whether the Uttar Pradesh Civil Laws (Amendment) 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 the valuation of Rs. 1 lakh pending in the Court of District Judge/Additional District J....
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....hat his jurisdiction shall exceed to all like suits of such value not exceeding twenty five thousand rupees as may be specified in the notification." 8. Section 25 deals with power to invest Subordinate Judges and Munsifs with Small Cause Court Jurisdiction. Section 25 of the Act as applicable in the State of Uttar Pradesh is as follows: "[25.[1] The High Court may by notification in the official 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 conferred: Provided that in relation to suits of the nature referred to in the proviso to subsection (2) of Section 15 of the said Act, the reference in this subsection to five thousand rupees shall be construed as reference to twenty-five thousand 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 un....
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....lance of account or otherwise" and Sec. 586 of the Code of Civil Procedure provides that "no second appeal shall lie in any suit of the nature cognizable in Courts of Small Causes, when the amount or value of the subject matter of the original suit does not exceed five hundred rupees". Since Section 6 of the Act of 1865 was enacted, a vast quantity of caselaw has grown up around it, and, as the rulings of the Courts have not been uniform, doubts constantly arise on the question whether a suit is or is not a suit of the nature cognizable by a Court of Small Causes, and, consequently, whether or not, where the suit is of value not exceeding five hundred rupees and the original decree made in it was not final but was open to appeal, an appeal will also lie from the appellate decree in the suit. It appears to the Government of India that the conflicting constructions placed on Section 6, of which some are due to the progress of legislation during the last twenty years (ILR 3 All 66), render a more accurate definition necessary of the suits of which Courts of Small Causes may take cognizance, and that legislation to this end should follow Sections 18 and 19 of the Presidency Small Cause....
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....ce); Orders XLI to XLV (appeals); Order XLVII, rules 2, 3, 5, 6, 7 (review); Order LI." 12. Section 5 provided for establishment of small causes courts by the State Government. Chapter III of the Act deals with "Jurisdiction of Courts of Small Causes". Section 15 of the Act provides: 15. Cognizance of suits by Courts of Small Causes- (1) A Court 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, 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 value does not exceed one thousand rupees shall be cognizable by a Court of Small Causes mentioned in the order." 13. The Uttar Pradesh Civil Laws (Amendment) Act, 1972 (U.P. Act No. 37 of 1972) was enacted by Uttar Pradesh Legislature with the Presidential assent. The Statement of Objects and Reaso....
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.... provides as follows:- "2. Amendment of Section 15 of Act IX of 1887.-- In Section 15 of the Provincial Small Cause Courts Act, 1887, as amended in its application to Uttar Pradesh, hereinafter referred to as the principal Act, in subsection (3), the following proviso shall be inserted, namely: "Provided that in relation to suits by the lessor for the eviction of a lessee from a building after the determination of his lease, or for recovery from him of rent in respect of the period of occupation thereof during the continuance of the lease, or of compensation for the use and occupation thereof after such determination of lease, the reference in this sub-section to two thousand rupees shall be construed as a reference to five thousand rupees. Explanation.--For the purposes of this sub-section, the expression 'building' has the same meaning as in Article (4) in the Second Schedule." 3. Amendment of Section 25 of Act IX of 1887.-- In Section 25 of the principal Act the following proviso thereto shall be inserted, namely : "Provided that in relation to any case decided by a District Judge or Additional District Judge exercising the jurisdiction of Judge of Small Causes....
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....inuance 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 subsection, the expression 'building' has same meaning as in Article (4) in the Second Schedule to the said Act. (3) The State Government may by notification in the official Gazette delegate to the High Court its powers under this section." 17. As noted above, the jurisdiction of Small Causes Court in so far as State of Uttar Pradesh was concerned was to be vested in both in the Court of Munsifs [now known as Civil Judge (Junior Division)] and Civil Judge [now designated as Civil Judge (Senior Division)]. As noted above, Court of Small Causes were empowered to take 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 and cognizance of such suits upto the value as fixed in the Act. Section 25 of the Bengal, Agra and Assam Civil Courts Ac....
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....ngal, Agra and Assam, Civil Courts Act 1887. 2. Bengal, Agra and Assam, Civil Courts Act 1887 hereinafter in this chapter referred to as the principal Act, (a) in subsection (1) for the words "ten thousand rupees" the words "one lakh rupees" shall be substituted; (b) in subsection (2) for the words "twenty five thousand rupees" the words "five lakh rupees" shall be substituted. 3. In section 21 of the principal Act, in subsection (1), in clause (b)- (a) for the words "one lakh rupees" the words "five lakh rupees" shall be substituted; and (b) for the words "five lakh rupees" the words "twenty five lakh rupees" shall be substituted. CHAPTER III Amendment of the Provincial Small Cause Courts Act, 1887 4. In Section 15 of the Provincial Small Cause 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 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 f....
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....t the order impugned is without jurisdiction and is hereby set aside. The SCC revision is allowed..." 23. Now we proceed to consider the issues which have arisen in the present appeals: ISSUE No. 1 & 2 24. Prior to Uttar Pradesh Civil Laws (Amendment) Act, 2015, as per Section 15 (2) of Provincial Small Cause Court, 1887 as applicable in the State of Uttar Pradesh in relation to suits by lessor for eviction of lessee from building after determination of his lease after recovering from him of rent, the Court of Small Causes would have taken cognizance of suits value of which does not exceed Rs. 25,000/- . The suit was filed with the valuation of Rs. 21,175/-. The Suit was initially filed in the Court of Civil Judge, Senior Division, Small Cause Court, Firozabad. Plaintiff filed a application for amendment which was allowed permitting the valuation to be enhanced to Rs. 27,775/-. The suit thereafter was transferred to the Court of District Judge and renumbered as S.C.C. Suit No. 1 of 2010. 25. The main issue to be answered is as to whether after 07.12.2015, the court of Additional District Judge where the suit in question was pending could still have pecuniary jurisdiction to de....
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....trary view and held that U.P. Civil Laws (Amendment) Act, 2015 is only prospective in nature and was applicable with regard to institutions of fresh suits only. In the suits pending, the Court of District Judge/Additional District Judge continued to have pecuniary jurisdiction to decide Small Causes Suits upto the valuation of Rs. 1 lac even after U.P. Civil Laws (Amendment) Act, 2015 enforced w.e.f. 07.12.2015. Learned Single Judge referred to an earlier judgment in S.C.C. Revision defective No. 76 of 2017, Sanjay Sharma alias Pintu vs. Anil Dua alias Titu, decided on 13.07.2017 where learned Singe Judge had taken a contrary view to the judgment of learned Single Judge in Shobhit Nigam's Case (Supra). 29. One of the issues, which has to be answered is as to whether the Court of Additional District Judge, which has been invested with the jurisdiction of Small Causes Court after amendment by 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 Sma....
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....rict 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 lessor against the lessee of any valuation could be filed in any Small Causes Court. 31. It is true that District Judge or Additional District Judge functioning as Small Causes Courts can take cognizance of all suits irrespective of their value. But use of the words "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 two courts in taking cognizance of small cause cases. The mere fact that District Judge or Additional District Judge can take cognizance of suits of unlimited value will not empower them to take cognizance of cases, which, according to statutory S....
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....otification No. 1 (8) 69 Nyaya (KaII), dated September 23, 1969, the Governor is pleased to direct, that subject to the exceptions specified in the Second Schedule to the first mentioned Act, and to the Provisions of any enactment for the time being in force, all suite referred to in the proviso to the said subsection of which the value does not exceed five thousand rupees, shall, with effect from the date of publication of this notification, be cognizable by the Courts of Judge. Small Causes, Bareilly, Moradabad, Meerut, Gorakhpur, Aligarh, Kanpur, Allahabad, Varanasi, Agra, Lucknow, and the Court of additional Judge, Small Causes, Lucknow." 7. The State Government issued another notification on the same day i.e. Sep. 22, 1972 dated September 22, 1972, published in Uttar Pradesh Gazette, Part I, dated October 7, 1972 (page No. 5973), which lays down as under : "In exercise of the powers under Subsection (3) of Section 25 of the Bengal, Agra and Assam Civil Courts Act, 1887 (Act XII of 1887) as amended by the Uttar Pradesh Civil Laws (Amendment) Act, 1972, (U.P. Act No. 37 of 1972) and in supersession of all earlier notifications issued in this behalf, the Governor is pleased t....
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....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 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 and the lessees for the latter's eviction from buildings whose value does not exceed Rs. 5,000. In view of the addition of Subsection (2) to Section 25 of the Bengal, Agra and Assam Civil Courts Act it became possible to confer upon the District Judge or Additional District Judge the jurisdiction of a Judge of a Court of Small Causes for the trial of suits for eviction of lessees and for 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 25101972 issued by this Court. 12. In view of the aforesaid a....
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....ial Small Causes Court and officers who are invested with the powers of a Judge of Court of Small Causes. In my opinion this contention is not valid. In Mt. Sukha v. Raghunath (AIR 1917 All. 62); D. D. Vidyarthi v. Ram Pearey Lal (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 are conferred shall also be deemed to be Courts of Small Causes. Section 4 of the Provincial Small Cause Courts Act lays down as under:- "In this Act, unless there is something repugnant in the subject or context, "Court of Small Causes" means a Court of Small Causes constituted under this Act. and includes any person exercising jurisdiction under this Act in any such Court." It is clear that the expression "Court of Small Causes" has to be interpreted in the context in which the said expression is used. In my view, the expression 'Court of Small Causes' used at the end of subsection (4) of Section 25 really means and refers to a District Judge or Additional District Judge on whom the jurisdiction o....
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....ct 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. 36. In Pankaj Hotel case (supra), the Court took the view that since the Court of District Judge or Additional District Judge, which have been invested with the power of small causes Court had unlimited pecuniary jurisdiction, they can validly adjudicate small causes suits having valuation of less than Rs. 1 lakh even after amendment by Uttar Pradesh Civil Laws (Amendment) Act, 2015, we do not approve the above view. When the Court of District Judge or Additional District Judge could no longer take cognizance of small cause suits of having 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. It is a different ma....
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....had occasion to consider the expression 'Cognizance'. The definition of word 'Cognizance' as given in Black's Law Dictionary was quoted with approval. In paragraph 10 of the judgment, following was stated: "10......According to Black's Law Dictionary the word "cognizance" means "jurisdiction" or "the exercise of jurisdiction" or "power to try and determine causes". In common parlance, it means taking notice of. A court, therefore, is precluded from entertaining a complaint or taking notice 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 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 n....
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....e 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 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 at the time which prompted or actuated the proposal of bill to introduce the same and the extent of existing evil of the society. Further, in Bhaiji vs. Sub-Divisional Officer, (2003) 1 SCC 692, this court again reiterated the following principles of statutory interpretation in paragraph 11:- "11. Reference to the Statement of Objects and Reasons is permissible for understanding the background, the antecedent state of affairs, the surrounding circumstances in 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 for the purpose of restricting and controlling the plain meaning of the language ....
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....aving 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 subordinate courts in the State. It is always better to achieve certainty by an authoritative opinion by the High Court instead of giving conflicting views by different learned Single Judges which may confuse the litigants, lawyers and subordinate courts in applying the law. ISSUE No. 3 49. It is the submission of learned counsel for the appellant that even if the Additional District Judge was not competent to 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 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 ....
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....51. One more submission which was raised in the said appeal was considered by this Court. One of the submission of the appellant who had instituted the suit in the subordinate court was that as per the revised valuation, the appeal against the decree of subordinate judge did not lay before the District Court but to the High Court, hence, the judgment of the District Judge in appeal should be ignored. The appeal in the High Court be treated as first appeal. It was contended that 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 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 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 corre....
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....ection 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. 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 issuing of the five cheques. We are thus clearly of the view 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 Bench of the High Court in its appellate jurisdiction." 54. In (2005) 7 SCC 791, Harshad Chiman Lal Modi vs. DLF Universal Ltd., this court had again considered Section 21 and other provisions of Code of Civil Procedure. In paragraph 30, following has been laid down: "30.........
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....and Section 11 of the Suits Valuation Act by this Court in Kiran Singh v. Chaman Paswan5 followed by Hiralal Patni v. Kali Nath6 and Bahrein Petroleum Co. Ltd. v. P.J. Pappu4. Therefore, there is no justification in understanding the expression "objection as to place of suing" occurring in Section 21A 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 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 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." 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 obj....