1950 (4) TMI 24 - HC - Indian Laws

Summary

Issues Involved:
1. Applicability of Section 15, Civil Procedure Code (CPC) to Chartered High Courts.
2. Competence of the City Civil Court to try suits filed in the High Court below Rs. 10,000 in value prior to the enhancement of its jurisdiction.

Issue-wise Detailed Analysis:

1. Applicability of Section 15, Civil Procedure Code (CPC) to Chartered High Courts:

The first question addressed whether Section 15, CPC, which mandates that every suit should be instituted in the court of the lowest grade competent to try it, applies to Chartered High Courts. The High Court of Madras has unlimited original jurisdiction under Clause 12 of the Letters Patent, except for cases within the jurisdiction of the Small Cause Court at Madras where the debt or damage does not exceed Rs. 100. The City Civil Court Act (VII of 1892) established the City Civil Court with jurisdiction over suits not exceeding Rs. 2,500, later increased to Rs. 10,000 by a notification effective from 1st December 1948.

The judgment emphasized that Section 15, CPC, lays down a rule of procedure, not of jurisdiction, and does not oust the jurisdiction of a higher-grade court even if a suit could have been instituted in a lower-grade court. The practice has been that Section 15 does not apply to the original jurisdiction of the High Court, and the proviso (1) to Section 16 of the City Civil Court Act, which imposes a penalty on the plaintiff for instituting a suit in the High Court that should have been filed in the City Civil Court, is inconsistent with Section 15, CPC.

The conclusion was that Section 15, CPC, does not apply to the High Court exercising original jurisdiction when there is a conflict between the High Court and the City Civil Court. Therefore, the answer to the first question was in the negative.

2. Competence of the City Civil Court to try suits filed in the High Court below Rs. 10,000 in value prior to the enhancement of its jurisdiction:

The second question addressed whether the City Civil Court could try suits filed in the High Court below Rs. 10,000 in value before the jurisdictional enhancement. The judgment noted that the power of transfer under Section 16, proviso (2), of the City Civil Court Act, allows the High Court to transfer suits to the City Civil Court if, at the time of transfer, the suit is within the jurisdiction of the City Civil Court. The expression "arising within the City of Madras" in Section 3A and the notification was interpreted to denote the class of suits, not the time of their institution.

The judgment emphasized that a suitor's right to have a suit tried in a particular court is subject to the power of transfer recognized in the statute. The vested right to continue an action in the court where it was instituted can be made subject to a power of transfer by the very Act that constituted and established the court. The High Court has the power to transfer suits to the City Civil Court under the second proviso to Section 16, even if the suits were instituted before the jurisdictional enhancement.

The conclusion was that suits instituted before 1st December 1948, and valued below Rs. 10,000, can be transferred to the City Civil Court, and the City Civil Court is competent to try such suits when transferred. The transfer of suits can legally be made either under Section 16, proviso (2), of the City Civil Court Act or under Section 24(1), CPC.

Separate Judgments:
Subba Rao, J., expressed agreement with the conclusions without adding a separate judgment. Viswanatha Sastri, J., provided a detailed analysis, concurring with the conclusions and emphasizing the legislative intent and statutory provisions supporting the power of transfer and the non-applicability of Section 15, CPC, to the original jurisdiction of the High Court.

Conclusion:
The High Court of Madras held that Section 15, CPC, does not apply to the High Court exercising original jurisdiction, and suits valued below Rs. 10,000 instituted before the jurisdictional enhancement can be transferred to the City Civil Court, which is competent to try them. The transfer can be made under Section 16, proviso (2), of the City Civil Court Act or Section 24(1), CPC.