Introduction

Jurisdiction refers to the authority vested in a court under law to adjudicate disputes and dispense justice. The Code of Civil Procedure, 1908 (CPC) contains detailed provisions concerning jurisdiction of civil courts in India. The twin criterions for exercise of jurisdiction are territorial jurisdiction and pecuniary jurisdiction.

Territorial Jurisdiction

Territorial jurisdiction means the geographic limit within which a court has power to try a suit. Sections 15 to 21 of CPC deal with territorial jurisdiction. Section 15 provides that every suit shall be instituted in the court of lowest grade competent to try it. Section 16 to 18 enumerate the places where a suit may be instituted. Section 19 bars suit in a wrong court knowingly. Section 20 enables transfer to cure defect of jurisdiction.

As per Section 16, suit for immovable property can be filed where the property is situated. Where the property is situated within jurisdiction of multiple courts, the plaintiff has the option to choose any one. Suit for compensation for wrongs to a person or movable property can be filed where the wrong was done. Suit for immovable property combined with claim for rent or mesne profits can be filed where the property is situated provided the claim for rent, mesne profits does not exceed the proprietary claim.

Section 17 allows suit against a defendant residing within jurisdiction of the court. Where there are multiple defendants residing at different places, the suit can be instituted where any of the defendants reside provided leave of court is taken. Suits against a company or corporation can be filed where the registered office is situated or where the company conducts business. 

Suits upon a contract which stipulates specific court jurisdiction can be filed at such place. As per Section 18, suit for compensation for a wrong can be filed where the wrong was done or where defendant resides or work for gain. Suit against defendants residing at different places under a common liability can be filed where any of the defendant resides.

Where a suit is filed laying venue in the wrong court, the plaintiff will be liable to pay costs under Section 19. However, the plaint shall not be rejected solely on ground of wrong venue if other requirements are satisfied. The court has power under Section 21 to transfer a suit to appropriate court if it lacks territorial jurisdiction.

Pecuniary Jurisdiction

Pecuniary jurisdiction refers to the monetary limit up to which a court can try suits valued for jurisdictional purposes under CPC. Section 15 mandates the suit has to be instituted in the lowest grade court having requisite pecuniary jurisdiction. Valuation has to be done in good faith based on cause of action. Insufficient valuation can result in plaint rejection or dismissal of suit.

For pecuniary jurisdiction, suits are classified under CPC as per valuation:

• Small Cause suits: Up to Rs.10,000
• District Judge: Exceeding Rs.10,000 up to Rs.1 lakh 
• Subordinate Judge: Exceeding Rs.1 lakh up to Rs.10 lakhs
• District Court: Exceeding Rs.10 lakhs

The state governments periodically enhance the pecuniary limits of courts. Suit valuation is crucial for determining the appropriate forum having competence to adjudicate the dispute under law.

Factors Determining Jurisdiction

The following factors must be considered before filing a suit to ascertain the court which has proper territorial and pecuniary jurisdiction:

• Nature and valuation of subject matter.
• Place where the cause of action fully or partly arises.
• Place where the property is situated.
• Place where the defendant resides or works at the time of commencement of action.
• Sanctioned pecuniary jurisdiction of the court.
• Contractual stipulation as to court venue.
• Local limits of the court’s geographic coverage.

The plaint must demonstrate prima facie that the court has jurisdiction to entertain the proceedings. If deficiency of jurisdiction is apparent, the plaint is liable to rejection under Order 7 Rule 11. Caveatable jurisdiction is determined based on plaintiff’s averments in the plaint unless patently false or frivolous. Jurisdictional facts stated in plaint are presumed to be true for deciding place of suing.

Plaint Rejection Due to Lack of Jurisdiction

The plaint can be rejected by the court under Order 7 Rule 11 where it does not disclose cause of action, is barred by limitation or under res judicata, does not disclose right to sue, insufficiently stamped, or shows the suit should be instituted in another court. If the court lacks territorial or pecuniary jurisdiction, the plaint cannot proceed and has to be returned.

Jurisdictional issues raised by parties must be decided as preliminary issues before trial. If lack of jurisdiction is established as a preliminary issue, the plaint is liable to be dismissed or returned to be filed before the proper court having jurisdiction. However, absence of jurisdiction can be cured by transfer under Section 24. Minor errors as to place of suing may be corrected under Section 21.

Prorogation of Jurisdiction Even where territorial or pecuniary jurisdiction is absent, it is open for the defendant to waive the objection. If the defendant does not dispute jurisdiction, the same is taken to be established by prorogation or acquiescence. However, acquiescence does not confer jurisdiction on a court which is barred by law from entertaining the suit. Prorogation enables the court to proceed despite lack of jurisdiction if the defendant does not object at the first instance.