IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.SATHISH KUMAR, J.
Mahendra Kumar Poddar – Appellant
Versus
D.Pratish also called Pratish Vedhapuddi, – Respondent
A.No.5716 of 2022 in C.S.DR.No.79541 of 2022
Decided On : 11-12-2023
JOINDER - PROMISSORY NOTES - Order 2 Rule 3 CPC, Clause 14 Letters Patent - The court discussed the provisions of Order 2 Rule 3 of the CPC, which allows for the joinder of several causes of action in one suit against the same defendant, and Clause 14 of the Letters Patent, which permits the High Court to combine causes of action if it has original jurisdiction over at least one. The court interpreted these provisions to mean that the aggregate value of the claims determines jurisdiction, and that the statutory provisions of the CPC have an overriding effect over the Letters Patent. This interpretation influenced the court's decision to allow the application for joinder of causes of action.
Fact of the Case:
The plaintiff filed a suit for recovery of Rs.1,05,36,869/- based on multiple promissory notes executed by the defendant. The defendant contested the suit, claiming there was no lender-borrower relationship and that the court lacked jurisdiction due to the value of the promissory notes being below the threshold set by Clause 14 of the Letters Patent.
Finding of the Court:
The court found that the plaintiff's claims could be combined under Order 2 Rule 3 of the CPC, as the aggregate value of the claims exceeded the jurisdictional limit. The court emphasized that the statutory provisions of the CPC take precedence over the Letters Patent regarding jurisdiction.
Issues: Whether the causes of action based on multiple promissory notes could be combined in one suit, and whether the court had jurisdiction to entertain the suit given the value of the claims.
Ratio Decidendi: The court held that the jurisdiction of the court regarding the suit depends on the aggregate value of the causes of action at the time of instituting the suit, and that the provisions of the CPC have an overriding effect on the Letters Patent. The court also noted that lack of pecuniary jurisdiction is an irregularity, not a total lack of jurisdiction.
Final Decision: The application to join the causes of action was granted, allowing the plaintiff to proceed with the suit as framed.
JUDGMENT :
N.SATHISH KUMAR, J.
This application has been filed to join together all the cause of action in one suit in respect of the suit promissory notes.
2. The suit has been filed for recovery of a sum of Rs.1,05,36,869/- together with interest on Rs.99,80,000/- at 2% per month from the date of plaint till realization. It is the case of the plaintiff, that the defendant has borrowed a sum of Rs.1,00,000/- on 03.052012, on 25.11.2023 borrowed a sum of Rs.3,00,000/-, on 21.02.2014 borrowed a sum of Rs.30,00,000/- and a sum of Rs.11,00,000/-, on 26.02.2015 borrowed a sum of Rs.4,00,000/-. According to the plaintiff, the promissory notes have been executed by the defendant and it is a running account and the defendant has been continuously paying interest on various dates from 2015 and the last payment has been paid on 05.08.2020. Hence, the present application.
3. Counter has been filed by the respondent stating that there is no lender and borrower jural relationship. According him, all the promissory notes are valued at less than Rs.one crore and this Court has no jurisdiction to entertain the suit as per clause 14 of Letters Patent. Clause 14 of Letters Patent is not a provision to join several causes of action contemplated to amalgamate them to enhance the valuation so as to bring the case within the pecuniary jurisdiction of this Court. Hence, according to him, as per Clause 14 of Letters Patent, this Court has no jurisdiction and if the High Court has no jurisdiction in respect of one such cause of action, causes of action cannot be combined. The learned counsel further submitted that so as to bring the case within the pecuniary jurisdiction of this Court, which is not otherwise maintainable as framed, the present application has been filed.
4. The learned counsel appearing for the applicant would submit that as per Order 2 Rule 3 of CPC, the value of the suit depend on the aggregate subject matters at the date of instituting the suit for the causes of action therefor. Hence, it is his contention that the Letters Patent cannot be applied. He has also brought to the notice of this Court the judgment of the Division Bench of this Court in O.S.A.No.212 of 1986 wherein it has been clearly held that where the causes of action are united, the jurisdiction of the Court as regards the suit shall depend on the amount or value of the aggregated subject matters at the date of instituting the suit. Hence, it is his contention that the statutory provisions has an over riding effect on the provisions of Clause 14 of the Letters Patent. He has also relied upon the judgements of the Division Bench of this Court The Food Corporation of India Rep. by its Senior Regional manager, Madras – 6, Vs. M/s.Mayavaram Financial Syndicate rep. by the Managing Partner, P.Kalyanasundaram reported in 1993[2] LW 453 and the Division Bench of Lahore High Court in Chiragh Din Vs. Bhagwan Das reported in 1915 SCC OnLine Lah 152. The Division Bench of Lahore High Court in the judgment cited Supra has held as follows :
“It is no part of Court's duty to scrutinize every item included in a suit in order to determine whether any portions of that suit were triable by a Court of Small Causes. In this case, the suit was properly framed and included several causes of action against the same defendant. The suit regarded as one single suit was certainly not cognizable by a Court of Small Causes and the Sub-ordinate Judge had jurisdictio
The court established that under Order 2 Rule 3 of the CPC, multiple causes of action can be combined in one suit, and the jurisdiction is determined by the aggregate value of the claims, overriding ....
Promissory notes qualify as commercial disputes under the Commercial Courts Act, enabling suits for money recovery in the Commercial Court despite challenges on jurisdiction and compliance with proce....
In multifarious suits involving multiple plaintiffs with independent claims, each plaintiff must pay separate court fees as per Sec. 18 of the Maharashtra Court Fees Act, regardless of the claims ari....
The valuation of the suit at the time of filing determines the jurisdiction of the Court, and the interest amount is undetermined until the suit is heard and decreed.
The central legal point established in the judgment is the requirement for a common question of law and fact to unite causes of action against multiple defendants under Order II Rule 3 & 4 and Sectio....
The main legal point established in the judgment is that the court's jurisdiction to entertain a suit is determined by the nature of the relief sought and the location of the properties involved, esp....
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