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Gobardhan Lal Soneja v. Binod Kumar Sinha And Others Opposite Parties.

Patna High Court
Oct 31, 1991
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Smart Summary (Beta)

Structured Summary of the Opinion (Satyeshwar Roy, J.)

Factual and Procedural Background

The plaintiff filed Title Suit No. 31 of 1985 in the court of the Subordinate Judge, Begusarai seeking declaration of title, confirmation of possession and permanent injunction in respect of the suit property; the suit was valued at Rs. 10,025. Opposite parties No. 1–7 filed written statements. Opposite parties No. 8–10 applied under Order I Rule 10 CPC to be added as parties; that application was allowed. The addendum order was challenged in Civil Revision No. 131 of 1987, which was disposed of on 31.10.1987 directing that the suit be disposed within three months from receipt of the order.

The suit was pending in the court of the Munsif (Second, Begusarai) from 30.10.1987. By order of the District Judge (after an amendment raising pecuniary limits), the court of Munsif received on transfer another related suit (Title Suit No. 51 of 1983) and the matter was re-numbered as Title Suit No. 120 of 1985. The Munsif heard the suit and the parties closed evidence there. The suit was subsequently transferred to the court of the Subordinate Judge-I. On 31.8.1989 opposite party No. 1 petitioned that the Munsif had no pecuniary jurisdiction when the suit was filed and therefore the evidence recorded by the Munsif was without jurisdiction and all orders passed by him were void. The court below (by order dated 4.1.1990) accepted that contention relying on Kartik Nath Jha (supra) and held actions by the Munsif void. The petitioner filed the present civil revision challenging that order. The matter was referred to a Division Bench / special Bench of three judges for determination.

Legal Issues Presented

  1. Whether, in the circumstances of this case, the District Judge could transfer a suit valued at Rs. 10,025 to the court of the Munsif after the pecuniary jurisdiction of the Munsif had been raised by amendment (effective from 8.8.1987).
  2. Whether actions (including recording of evidence) taken by the Munsif were void on the ground that, at the time of filing of the suit (in 1983/1985), the Munsif did not have jurisdiction to entertain a suit of that value.
  3. Whether the amendment raising the pecuniary jurisdiction of the Munsif operates retrospectively so as to empower the Munsif to hear suits that were filed earlier but were pending when the amended jurisdiction came into force.

Arguments of the Parties

Opposite Party No. 1's Arguments

  • When the suit was originally filed (1983/1985), the Munsif did not have pecuniary jurisdiction to entertain a suit valued at Rs. 10,025 (the Munsif's pecuniary limit in 1985 was Rs. 5,000).
  • Therefore, even if the Munsif heard the suit after the pecuniary jurisdiction was later increased, the hearing and all actions taken by the Munsif were without jurisdiction and void.
  • The court below accepted this contention by relying on the decision in Kartik Nath Jha (supra).

Petitioner's (Appellant's) Arguments / Position

  • The suit was originally filed before a court (the Subordinate Judge) that had pecuniary jurisdiction; thus there was no fault in filing the suit in that forum.
  • At the time the District Judge ordered transfer of the suit to the Munsif (after amendment effective 8.8.1987), the Munsif then had the pecuniary jurisdiction to entertain the suit (jurisdiction as of the date of transfer/hearing is decisive).
  • No party had objected to the Munsif's jurisdiction before the Munsif while the matter was being heard; hence the Munsif's proceedings and recorded evidence should not be declared void.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kartik Nath Jha v. Smt. Seela Thakur… : 1988 B.B.C.J 767 : 1987 PLJR 1126 Held (by the single Judge in that case) that where a suit of a certain value was filed before amendment but decided thereafter, appeal/venuedetermination should follow the pre-amendment position (i.e., appeal to High Court rather than District Judge) — supporting the proposition that jurisdiction should be determined by the date of filing. The court below relied on this decision to hold that the Munsif's actions were void. The present Bench did not accept the correctness of Kartik Nath Jha (see analysis and later authorities).
Bhim Singh v. M.L. Agarwala : 1991 BBCJ 459 : 1991 (1) PLJR 325 Considered the correctness of Kartik Nath Jha (supra) and reviewed the judgments relied upon there. The Division Bench in Bhim Singh held that the judgments relied upon in Kartik Nath Jha did not support the legal position laid down there and, relying on New India Insurance, did not approve Kartik Nath Jha. The present Bench refers to this treatment and treats Kartik Nath Jha as not correctly laying down the law.
New India Insurance Co. Ltd. v. Smt. Shanti Misra, Adult : AIR 1976 S.C. 237 Held that a statutory change which constitutes a new forum (section creating Claims Tribunals) affected forum/procedure (adjectival law) and not substantive rights; such changes operate retrospectively so that causes of action accruing before the change may still be required to be pursued in the new forum — vested right of action is not a vested right of forum. The Bench relied on this Supreme Court principle to conclude that the amendment raising the pecuniary jurisdiction of the Munsif is a change of forum/adjectival law and applies to pending suits. On that basis the court held the Munsif acquired jurisdiction to hear suits of the higher value once the amendment came into effect.

Court's Reasoning and Analysis

The court examined the chronological statutory changes to the Bengal, Agra & Assam Civil Courts Act, 1887 (the "1887 Act") relevant to the pecuniary jurisdiction of Munsifs and Subordinate Judges. Key points of the analysis, drawn strictly from the opinion, are:

  1. Statutory background:
    • Earlier amendments (1959, 1960) progressively increased pecuniary limits for Munsifs.
    • An Ordinance (Bihar Ordinance 15 of 1987) came into force on 25.5.1987 increasing limits; it was replaced by the Bengal, Agra & Assam Civil Courts (Bihar Amendment) Act, 1987 which came into force on 8.8.1987 and set the pecuniary jurisdiction of the class of Munsifs at Rs. 30,000 and Additional Munsifs at Rs. 20,000.
  2. The legal question: whether the Munsif could validly hear a suit of value Rs. 10,025 where the suit had been filed earlier (when the Munsif's pecuniary limit was lower) but the hearing and evidence-taking occurred after the amendment increasing the Munsif's pecuniary jurisdiction.
  3. Evaluation of precedent:
    • The court reviewed Kartik Nath Jha (supra), where it was held that jurisdiction should be determined by reference to the filing date; however, this Bench noted that the correctness of that decision was considered in Bhim Singh v. M.L. Agarwala and not approved in light of the Supreme Court decision in New India Insurance Co. Ltd. v. Shanti Misra.
    • The Supreme Court in New India Insurance had held that a change of forum effected by statute (constituting claims tribunals) was a change of forum/adjectival law and applied retrospectively to pending suits — a person has a vested right of action but not a vested right of forum.
  4. Application of principle:
    • The court applied the New India Insurance principle to the amendments in section 19 of the 1887 Act: the raising of pecuniary jurisdiction is not a substantive change to rights but a change of forum/adjectival law, and therefore applies to pending suits.
    • The court articulated the decisive test: whether, on the date when the hearing of the suit was taken up (and/or when the suit was transferred), the forum then had the pecuniary jurisdiction to entertain the suit. If it did, its actions (including recording evidence) are valid.
    • Concretely, when the District Judge transferred the suit to the Munsif (after 8.8.1987), the Munsif then had jurisdiction up to Rs. 30,000. Accordingly, the Munsif had jurisdiction to hear the suit valued at Rs. 10,025 and to record evidence; actions taken by the Munsif were not void.
  5. Conclusion of analysis:
    • The court held that the order of the court below (which had set aside the Munsif's actions as void relying on Kartik Nath Jha) was incorrect in law. The crucial question is jurisdiction at the time of hearing/transfer (not solely at filing), and the statutory amendment operated to confer jurisdiction retrospectively upon pending matters.

Holding and Implications

Holding: This civil revision application is allowed and the impugned order of the court below (which had held the Munsif's actions void) is set aside.

Implications / Consequences:

  • The Munsif had jurisdiction to hear the suit and to record evidence because, on the date the suit was transferred/heard, the pecuniary jurisdiction of the Munsif had been increased (to Rs. 30,000 for that class of Munsif) by the 1987 amendment.
  • The actions taken and evidence recorded by the Munsif are therefore valid and not void.
  • Practical directions to the court below: because evidence had been closed before the Munsif, the court below shall fix dates for hearing arguments of the parties and shall dispose of the suit in accordance with law. The court below is directed to dispose of the suit within three months from the date of receipt of a copy of this judgment.
  • Legal principle affirmed by this opinion (as applied in this case): an amendment raising pecuniary jurisdiction that changes the forum is to be treated as a change in forum/adjectival law and applies to pending suits (i.e., the decisive test is the pecuniary jurisdiction of the forum on the date of hearing/transfer). This Court applied the principle from New India Insurance to reach that conclusion in the context of amendments to the 1887 Act.
Show all summary ...

Satyeshwar Roy, J.:— The plaintiff filed Title Suit No. 31 of 1985 in the court of Subordinate Judge, Begusarai for declaration of his title, confirmation of possession and permanent injunction with regard to the suit property. The value of the suit was Rs. 10,025/-. Opposite parties No. 1 to 7 filed their written statement contesting the suit. Opposite parties No. 8 to 10 filed an application under Order I Rule 10 of the Code of Civil Procedure for adding them as parties in that suit. That was allowed. The order was challenged by the petitioner in Civil Revision No. 131 of 1987 which was disposed of on 31.10.1987 with the direction that the suit be disposed of within three months from the date of receipt of the order. The suit was pending in the court of Munsif, Second, Begusarai, from 30.10.1987 It was ordered that the title Suit No. 219 of ??? filed by the opposite parties no. 8 to 10 should be heard analogous with the Title Suit No. 31 of 1985.

2. By order of the District Judge, the court of Munsif received on transfer the Title Suit No. 51 of 1983, as his pecuniary jurisdiction was raised to Rs. 30,000/- by an Amendment in the Bengal, Agra, Assam Civil Courts Act, 1887 (hereinafter referred to as the 1887 Act) with effect from 8.8.1987 In the court of the Munsif, the suit was re-numbered as title suit No. 120 of 1985. The Munsif took up hearing of the suit and the parties closed their evidence. At that stage, the suit was transferred to the court of the Subordinate Judge-I. On 31.8.1989, the opposite party No. 1 filed a petition in that Court that as the Munsif had no pecuniary jurisdiction to try the suit when it was filed, the evidence recorded by him was without jurisdiction and all orders passed by him were void. The petitioner filed rejoinder. The court below by order dated 4.1.1990 relying on Kartik Nath Jha… v. Smt. Seela Thakur….: 1988 B.B.C.J 767 : 1987 PLJR 1126: held that as 1887 Act was amended with effect from 8.8.1987 and as the Munsif had then the pecuniary jurisdiction to entertain the suit valued at Rs. 5000/- all actions taken by the Munsif were void. This order has been challenged by the petitioner in this civil revision application. The case was listed for admission before a learned single Judge. He was of the opinion that the case be heard by a Division Bench. The learned single Judge also observed that the records be placed before the Hon'ble the Chief Justice, who, if thinks fit, may constitute a larger Bench. The Chief Justice ordered for listing of this case before a special Bench of three judges and this is how the case has been listed before this Bench.

3. The admitted facts are that the suit valued at Rs. 10,025/- was filed in the court of the Sub-Judge in 1983. The suit was filed before a court having pecuniary jurisdiction, in 1985, the pecuniary jurisdiction of the Munsif was Rs. 5000/-. With effect from 8.8.1987, she pecuniary jurisdiction of the Munsif was raised to Rs. 30,000/- by Bihar Amendment of 1887 Act. On 16.9.1987, the District Judge ordered for transfer of the case to the court of the Munsif. When the order was passed by the District Judge, the pecuniary jurisdiction of the Munsif was Rs. 30,000/-. None of the parties filed any application before the Munsif that he had no jurisdiction to hear the suit. The hearing of the suit was taken up by the Munsif. The parties closed their evidence before that court. The suit was (hereafter transferred to the court of Subordinate Judge. In the court of the Subordinate Judge, opposite party No. 1 took an objected that as in 1985, the Munsif had no pecuniary jurisdiction to entertain a suit valued at Rs. 10,000/-, the hearing of the suit by him, even if it was after 8.8.1987, was without jurisdiction. As noticed above, the court below accepted the contention of the opposite party No. 1 relying on Kartik Nath Jha (supra) and held that all action taken by the Munsif was void.

4. A number of points were framed by the learned single Judge. The point involved in this case is whether on the basis of the admitted facts as noticed above, the District Judge could have transferred the suit valued at Rs. 10,025/- to the court of the Munsif after 8.8.1987, the date from which the pecuniary jurisdiction of the Munsif has been raised to Rs. 30,000/- and the Munsif had the jurisdiction to hear such suits. As will appear from the facts stated hereinafter, the legal position is that prior to 25.5.1987, the Munsif had no jurisdiction to entertain and hear a suit valued at more than Rs. 5,000/- and if such a suit was filed in the court of Munsif and was beard by him, it was without jurisdiction. In this case, the suit was filed before the Subordinate Judge, who had the pecuniary jurisdiction to entertain the suit. Therefore, there was nothing wrong in the filing of the suit.

5. It appears that there is some confusion with regard to the recent amendments made in 1887 Act with effect from 25.5.1987 Relevant portion of original section 21 of 1887 Act reads as follows:—

Section 21: “Appeals from Subordinate Judges and Munsifs:—(1) Save as aforesaid an appeal from a decree or order of a Subordinate Judge shall lie—

(a) to the District Judge where the value of the original suit in which or in any proceeding arising out of which the decree or order was made did not exceed rupees five thousand and

(b) to the High Court in any other case.

(2) Save as aforesaid, an appeal from a decree or order of a Munsif shall lie to the District Judge;

(3) ………

(4) ………

6. This section was amended by the Bengal. Agra & Assam Civil Courts (Bihar Amendment) Act, 1959 with effect from 25.11.1959 and the District Judge was embowered to entertain appeal valued less than Rs. 10,000/-.

7. By the Bengal, Agra and Assam Civil Courts (Bihar Amendment) Act, 1960, section 19(1) and (2) and section 21 were amended. The pecuniary jurisdiction of the Munsifs mentioned in section 19(1) was raised to Rs. 2000/- and Munsifs of the class mentioned in section 19(2) was raised to Rs. 5000/-. By the Bengal, Agra and Assam Civil Courts (Bihar Amendment) Ordinance, 1987 (Bihar Ordinance 15 of 1987) which came into force with effect from 25.5.1987, section 19 and 21 of 1887 Act were amended. Section 19 after amendment in 1922 read as follows:—

8. Section 19: Extent of jurisdiction of Munsif:—

(1) Save as aforesaid and subject to the provisions of sub-section (2), the jurisdiction of a Munsif extends to all like suits of which the value does not exceed rupees one thousand;

(2) The State Government may, on the recommendation of the High Court, direct by notification in the Official Gazette, with respect to any Munsif named therein, that his jurisdiction shall extend to all like suits of such Value not exceeding rupee four thousand, as may be specified in the notification:

Provided that the State Government may, by notification in the official Gazette, delegate to the High Court its powers under this section.”

9. Pecuniary jurisdiction of the Munsif mentioned in section 19(1) was raised to Rs. 10,000/- and Munsif of the class mentioned in section 19(2) was raised to Rs. 25,000/-. By amending section 21 of 1887 Act, the District Judge was empowered to entertain appeal valued less than Rs. 50,000/-. The Bihar Ordinance 15 of 1987 was replaced by Bengal, Agra & Assam Civil Courts (Bihar Amendment) Act, 1987. In 1987 Act, the pecuniary jurisdiction of the Munsif under section 19(i) of 1887 Act was raised to Rs. 20,000/- and Munsifs of the class mentioned in section 19(2) of 1887 Act was raised to Rs. 30,000/-. By amendment of section 21 of 1887 Act, District Judge was empowered to entertain appeal valued less than Rs. 60,000/-. This Act came into force with effect from 8.8.1987 and Bihar Ordinance 15 of 1987 was repealed.

10. As the position stands today, the pecuniary jurisdiction of the Munsif mentioned in section 19(1) of 1887 Act commonly known as the Additional Munsif is Rs. 20,000/- and class of Munsif mentioned in 19(2) of 1887 Act commonly known as Munsif is Rs. 30,000/-. The District Judge may entertain appeal valued at less than Rs. 60,000/-. This was also the position when the suit in question was transferred by the District Judge from the court of the Subordinate Judge to the court of the Munsif. It has already been noticed that the court below accepted the contention of the opposite party No. 1 that all action taken by the Munsif was void relying on Kartik Nath Jha (supra).

11. In Kartik Nath Jha (Supra), the learned single Judge relied upon some decisions for holding that notwithstanding the amendment of section 21 of 1887 Act by the Bihar Ordinance 15 of 1987 with effect from 25.5.1987, if the value of the suit is Rs. 10,000/- and filed before the Ordinance, but decided thereafter, appeal will lie not before the District Judge, but the High Court. The correctess of Kartik Nath Jha (Supra), was considered in Bhim Singh v. M.L Agarwala: 1991 BBCJ 459 : 1991 (1) PLJR 325. The Division Bench noticed all the judgments relied upon in the case of Kartik Nath Jha (supra) and held that none of the judgements supports the legal position laid down by the learned single Judge. Relying on the New India Insurance Co. Ltd v. Smt Shanti Misra, Adult: AIR 1976 S.C 237: the Division Bench did not approve Kartik Nath Jha (supra), as laying down the correct law. The Supreme Court in the New India Assurance Co. Ltd. (supra) considered the effect of section 110A of the Motor Vehicles Act, 1939 by which Claims Tribunals were constituted for filing claims arising out of motor vehicle accidents: The question was whether with regard to the claims for compensation arising out of an accident which took place after introduction of section 110A, a suit will lie or a claim therefor shall have to be filed before the Claims Tribunal. It was held by the Supreme Court that by section 110A there was no change in law, but merely change of forum i.e the change of adjectival or procedural law and not substantive law. If was observed. “It is well established proposition that such change of law operates retrospectively and the person has to go to new forum even if his cause of action or right of action accrued prior to the change of forum. He will have a vested right of action, but not a vested right of forum”. It may be noticed that the language of section 19 is not such as to interpret it that the Munsif and Additional Munsif were given jurisdiction to hear suits of higher value which were filed after the amendment of that section. For this reason also, it must be held that the application of section 19 will be retrospective in the sense that it will apply to the pending suits. This proposition of law has been laid down in the New India Assurance Co. Ltd., (supra).

12. In my opinion, the law is that after the pecuniary jurisdiction of the Munsif/Additional Munsif was raised, it acquired pecuniary jurisdiction to hear suits of higher value that is Rs. 30,000/- and Rs. 20,000/- respectively even if they had no jurisdiction to entertain such suit when it were filed. The crucial test for deciding whether the court had the pecuniary jurisdiction to hear a suit is to see whether on the date hearing of the suit is taken up, it has the pecuniary jurisdiction to entertain such suit or not. It has been noticed that on the date when the suit was transferred to the court of the Munsif and hearing was taken up, it had jurisdiction to entertain suit valued upto Rs. 30,000/. In the present case, it must, therefore, be held that the Munsif had jurisdiction to hear the suit and record evidence.

13. In the result, this civil revision application is allowed and the order impugned is set aside. In view of the fact that the evidence had been closed by both the parties when the suit was pending in the court of Munsif, the court below shall fix date for hearing arguments of the parties and shall dispose of the suit in accordance with law. The suit is of 1985. The court below shall dispose of the suit within three months from the date of receipt of a copy of this judgment.