Section 18 of The Presidency Small Cause Courts Act, 1882
Subject to the exceptions in section 19, the Small Cause Court shall have jurisdiction to try all suits of a civil nature— when the amount or value of the subject-matter does not exceed two thousand rupees; and—
- (a)the cause of action has arisen, either wholly or in part, within the local limits of the jurisdiction of the Small Cause Court, and the leave of the Court has, for reasons to be recorded by it in writing, been given before the institution of the suit; or
- (b)all the defendants, at the time of the institution of the suit, actually and voluntarily reside, or carry on business, or personally work for gain, within such local limits; or
- (c)any of the defendants at the time of the institution of the suit, actually and voluntarily resides, or carries on business, or personally works for gain, within such local limits, and either the leave of the Court has been given before the institution of the suit, or the defendants who do not reside, or carry on business, or personally work for gain, as aforesaid, acquiesce in such institution: 1 [Provided that where the cause of action has arisen wholly within the local limits aforesaid, and the Court refuses to give leave for the institution of the suit, it shall record in writing its reason for such refusal.] Explanation I.—When in any suit the sum claimed is, by a set-off admitted by both parties, reduced to a balance not exceeding two thousand rupees, the Small Cause Court shall have jurisdiction to try such suit. Explanation II.—Where a person has a permanent dwelling at one place and also a lodging at another place for a temporary purpose only, he shall be deemed to reside at both places in respect of any cause of action arising at the place where he has such temporary lodging. Explanation III.—A Corporation or Company shall be deemed to carry on business at its sole or principal office in 2 [India], or, in respect of any cause of action arising at any place where it has also a subordinate office, at such place.
Summary
- The court can hear civil cases if the dispute value does not exceed two thousand rupees.
- The court gets jurisdiction if the cause of action arises within its local limits and the court grants permission before the case is filed.
- The court has jurisdiction if all defendants live, work, or run a business within the court limits when the case starts.
- If only some defendants live or work within the limits, the court can still hear the case if it grants permission beforehand or if the other defendants agree to the case being there.
- A business or corporation is considered to be working at its main office in India or at any local branch office where the cause of action arose.
Practical examples
FAQ
1. What is the maximum amount for a case under Section 18 of The Presidency Small Cause Courts Act, 1882?
The maximum amount or value of the subject-matter for a civil suit under Section 18 of The Presidency Small Cause Courts Act, 1882 is two thousand rupees.
2. Can a company be sued under Section 18 of The Presidency Small Cause Courts Act, 1882 at its branch office?
Yes, under Section 18 of The Presidency Small Cause Courts Act, 1882, a corporation or company is considered to carry on business at its main office in India, or at a branch office if the cause of action arose at the place where that branch is located.
3. Does the court have to write down its reasons if it refuses to let someone file a case under Section 18 of The Presidency Small Cause Courts Act, 1882?
Yes, under Section 18 of The Presidency Small Cause Courts Act, 1882, if the cause of action arose completely within the local limits and the court refuses to give permission to file the suit, the court must record its reasons for refusal in writing.
4. How does a set-off affect the court's jurisdiction under Section 18 of The Presidency Small Cause Courts Act, 1882?
Under Section 18 of The Presidency Small Cause Courts Act, 1882, if both parties admit to a set-off, which is a reduction of the claim by what the plaintiff owes the defendant, and this reduces the total claim to two thousand rupees or less, the court has the power to hear the suit.
Test yourself
Q1.Under Section 18 of The Presidency Small Cause Courts Act, 1882, what is the default maximum pecuniary limit for suits of a civil nature?
Q2.Under Section 18 of The Presidency Small Cause Courts Act, 1882, what is required if a plaintiff wants to file a suit where the cause of action arose only in part within the local limits of the court?
Q3.Under Section 18 of The Presidency Small Cause Courts Act, 1882, if a person has a permanent dwelling in Madras and a temporary lodging in Calcutta, how is their residence determined for a cause of action arising in Calcutta?
Q4.Under Section 18 of The Presidency Small Cause Courts Act, 1882, how does a joint and several liability claim behave if a defendant resides outside the local limits?