Introduction

Section 15 of the Civil Procedure Code, 1908 (CPC) refers to the pecuniary jurisdiction of the Court. This Section directs the suitor to institute a suit in the court of the lowest grade.

Section 15 of CPC

• This Section states that every suit shall be instituted in the court of the lowest grade competent to try it.
• The rule laid down in this section is a rule of procedure and does not affect the jurisdiction of the court.
• A decree passed by a court of higher grade cannot be said to be without jurisdiction. It is merely an irregularity and the decree passed is not a nullity.

Object of Section 15 of CPC

• The main objective of this section is to see that the courts of higher grades shall not be overburdened with suits.
• It affords convenience to the parties and witnesses who may be examined in such suits.

Valuation in the Plaint

• The plaintiff’s valuation in the plaint determines the jurisdiction of the court and not the amount for which the decree may be passed by the Court.
• Usually, a court will accept a valuation of the plaintiff in the plaint and proceed to decide the suit on merits.
• Subsequent changes in the value does not affect the jurisdiction.
• Thus, if the pecuniary jurisdiction of the court is Rs. 10,000 and plaintiff files a suit for accounts and finally the court finds on taking the account that Rs. 15,000 are due, the court is not deprived of its jurisdiction to pass a decree for that amount.
• If the plaintiff deliberately undervalues or overvalues the claim for the purpose of choosing the forum, the plaint cannot be said to be correctly valued, and it is the duty of the court to return it.

Object as to Pecuniary Jurisdiction

• If the defendant disputes the valuation put by the plaintiff, it is the duty of the trial court to inquire into it and to pass an appropriate order.
• But no objection as to overvaluation or undervaluation will be allowed by any appellate or revisional court unless the following conditions are fulfilled:
  • The objection was taken in the court of first instance.
  • It was taken at the earliest possible opportunity and in cases where issues are settled, at or before the settlement of issues.
  • There has been a consequent failure of justice.