1999 (10) TMI 754 - HC - Indian Laws

Summary

Issues Involved:
1. Pecuniary jurisdiction of the City Civil Court.
2. Valuation of the suit for Court fees purposes.
3. Determination of the appropriate section of the Bombay Court Fees Act applicable.
4. Jurisdiction of the City Civil Court versus the Bombay High Court.

Detailed Analysis:

1. Pecuniary Jurisdiction of the City Civil Court:
The primary issue revolves around whether the City Civil Court has the pecuniary jurisdiction to entertain the suit. The defendants contended that the City Civil Court lacked jurisdiction due to the high value of the shares involved, which exceeded Rs. 4 crores. The plaintiffs argued that the suit was not susceptible to monetary evaluation and therefore fell under Section 6(iv)(j) of the Bombay Court Fees Act.

2. Valuation of the Suit for Court Fees Purposes:
The plaintiffs initially valued their claim at Rs. 600 under Section 6(iv)(j) of the Bombay Court Fees Act, paying a fixed Court fee of Rs. 60. The defendants argued that the shares, being movable property with a market value of more than Rs. 4 crores, should be valued under Section 6(iii) of the Act. Alternatively, they suggested that the suit should be governed by Schedule 1 Article 7 of the Act, which deals with suits preventing monetary loss.

3. Determination of the Appropriate Section of the Bombay Court Fees Act:
The Court examined whether Section 6(iii) or Article 7 of Schedule 1 of the Bombay Court Fees Act applied. The shares were deemed movable property with a market value, thus falling under Section 6(iii). The Court rejected the plaintiffs' argument that the suit was for a relief not susceptible to monetary evaluation under Article 23(f) of Schedule II.

4. Jurisdiction of the City Civil Court versus the Bombay High Court:
The Court concluded that the City Civil Court did not have jurisdiction to entertain the suit due to the high value of the shares involved. The appropriate forum for the suit was the Bombay High Court under its Original Side jurisdiction, as per Clause 12 of the Letters Patent.

Conclusion:
The Court quashed the City Civil Court's order, holding that it lacked jurisdiction to try the suit. The plaint was ordered to be returned to the plaintiffs for presentation to the Bombay High Court. The injunction orders were to remain in effect for two weeks, allowing the plaintiffs time to refile in the appropriate Court. The order was stayed for eight weeks to permit the plaintiffs to seek further legal remedies. Costs were made cost in the cause.