IN THE HIGH COURT OF KERALA AT ERNAKULAM
A. BADHARUDEEN, J.
Sivasankaran, S/o Narayanatharakan – Appellant
Versus
M/s.Sreekanth Enterprises – Respondent
RFA No.636 of 2015
Decided on : 04-12-2024
(A) Kerala Civil Courts Act, 1957 - Section 13 - Kerala Court Fees and Suits Valuation Act - Valuation for appeal - The court determined that the valuation for the purpose of jurisdiction is Rs.1,68,000/- and not above Rs.2 lakh, thus the appeal is maintainable in the District Court. (Paras 7, 14)
(B) Jurisdiction - The right of appeal is substantive and vested on the date of filing the suit, unaffected by subsequent amendments. (Paras 11, 12)
Facts of the case:
The appellants filed an appeal against the decree of the Sub Court, questioning the pecuniary jurisdiction of the District Court, which was determined to be Rs.1,68,000/-.
Findings of Court:
The learned District Judge's ruling was erroneous; the appeal should be entertained by the District Court.
Issues: The main issue was the determination of the proper forum for the appeal based on the valuation of the suit.
Ratio Decidendi: The court ruled that the valuation for jurisdiction is static and should not include accrued interest for determining the forum of appeal.
Result: The verdict of the learned District Judge is set aside, and the appeal is directed to be forwarded to the District Court.
JUDGMENT :
The defendants in O.S.No.210/2011 on the files of Sub Court, Ottapalam impugns decree and judgment therein dated 21.01.2014 by filing this appeal under Section 96, read with Order XLI Rule 1 of the Code of Civil Procedure.
2. Since the pecuniary jurisdiction of this Court to entertain the appeal is doubted, the learned counsel for the appellants and respondent were heard in detail.
3. At the time of hearing, the learned counsel for the appellants submitted that in fact, the appellants filed this appeal as A.S.No.52/2014 before the District Court, Palakkad and as per the judgment dated 10.10.2014, the learned District Judge found that the District Court has no pecuniary jurisdiction to entertain the present appeal and accordingly, the appeal memorandum was ordered to be returned to the appellants for presentation before this Court.
4. According to the learned counsel for the appellants, since the District Judge found that the District Court has no pecuniary jurisdiction, the appellants' remedy is before this Court and therefore, the appeal is maintainable.
5. The learned counsel for the respondent would submit that the present appeal is not maintainable before this Court. However, she pointed out the grievance of the respondent, who is a senior citizen litigating from 2011 onwards and sought for an early disposal of this appeal on merits in either way.
6. In this matter, as evident from the copy of the decree placed along with the appeal memorandum, the suit was originally valued at Rs.1,68,000/-. When the appellants filed A.S.No.52/2014 before the District Court, the valuation was shown as Rs.2,47,894/- by adding interest subsequently accrued after filing of the suit, in view of Explanation 3 to Section 52 of the Kerala Court Fees and Suits Valuation Act. It is on this premise, the learned District Judge, relying on the decision in Clara v. Augustine [1984 KLT 377], held that since the valuation in the appeal is Rs.2,47,894/-, the proper forum for filing the present appeal is this Court.
7. On a bare perusal of the verdict and the valuation shown in the decree, in fact, it is evident that the valuation for the purpose of appeal, in terms of Section 13 of the Kerala Civil Courts Act, 1957 is only Rs.1,68,000/- and not above Rs.2 lakh. Section 13 of the Kerala Civil Courts Act, 1957, as amended by the Kerala Civil Courts (Amendment) Act, 1996, provides that appeals from the decrees and orders of a Munsiff's Court and where the amount, or value of the subject matter of the suit does not exceed two lakh rupees from the original decrees and orders of a Subordinate Judge's Court shall, when such appeals are allowed by law, lie to the District Court.
8. Section 52 of the Kerala Court Fees and Suit Valuation Act provides that the fee payable in an appeal shall be the same as the fee that would be payable in the Court of first instance on the subject matter of the Appeal. However, Explanations 1, 2 and 3 also to be read along with Section 52 while computing the court fee payable in appeals.
9. Exactly, similar question has been considered by this Court in the decision reported in Ramanan v. Chitrasenan [2007 (2) KLT 11], wherein it was held in paragraph No.4 as under;
The valuation for jurisdiction determines the proper forum for appeal, and accrued interest should not be included in this valuation.
The pecuniary jurisdiction of an Appellate Court is determined solely by the provisions of the Civil Courts Act, and not by the court fee valuation under the Kerala Court Fees and Suits Valuation Act....
Point of law: Court Fee - It is evident that the Court has to find cut that the claim is under valued. Then at least require the plaintiff to correct the valuation and fix a time to pay deficit Court....
The valuation of the original suit determines the jurisdiction for appeals, irrespective of the counter claim's valuation, as per the provisions of the C.P.C.
The Civil Judge (Senior Division) has jurisdiction to decide suits valued below Rs.5 lacs, and issues of undervaluation must be determined through proper issue framing.
The appeal is not maintainable in the High Court due to valuation issues and procedural defects as per applicable rules.
The date of institution of a suit determines jurisdiction, and recent amendments to the Telangana Civil Courts Act apply prospectively, ensuring that earlier provisions govern pending cases.
Law relating to forum being procedural in nature, an amendment which altered the forum, would apply retrospectively. Whilst the correctness of the aforesaid contention cannot be doubted, it is essent....
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