REFERENCES TO HIGH COURTSCentral

Section 70 of The Presidency Small Cause Courts Act, 1882

When judgment is given under section 69 contingent upon the opinion of the High Court, the party against whom such judgment is given shall at once furnish security, to be approved by the Small Cause Court, for the costs of the reference to the High Court and for the amount of such judgment: Provided that no security for the amount of such judgment shall be required in any case in which the Judge who tried the case has ordered such amount to be paid into Court, and the same has been paid accordingly. If no such security given, party to be deemed to have submitted to judgment.—Unless such security as aforesaid is at once furnished, the party against whom such contingent judgment has been given shall be deemed to have submitted to the same.

Summary

Requires a party against whom a contingent judgment is given on a High Court reference to immediately provide approved security.
The security must cover both the costs of the High Court reference and the amount of the judgment.
Waives the security for the judgment amount if the trial Judge ordered it paid into Court and it has already been paid.
Deems the party to have submitted to the contingent judgment if they fail to provide the required security immediately.

Practical examples

1Ramesh loses a lawsuit in the Small Cause Court, but the judges refer a tricky legal question to the High Court. The court gives a temporary decision against Ramesh that depends on what the High Court decides. Ramesh must immediately give the court a guarantee, like a bank bond for 5,000 rupees, to cover the potential High Court costs and the court's judgment amount.

2Sita is in a similar position, but the judge had already ordered her to deposit the disputed amount of 3,000 rupees directly into the court's account, which she did. When the case is referred, Sita only needs to provide security for the High Court reference costs, not the 3,000 rupees, since that money is already safely in the court's possession.

FAQ

1. What happens under Section 70 of The Presidency Small Cause Courts Act, 1882 if a party fails to give security after a contingent judgment?

Under Section 70 of The Presidency Small Cause Courts Act, 1882, if a party does not immediately furnish the required security, they are legally considered to have submitted to the judgment.

2. Must a party always provide security for the entire judgment amount under Section 70 of The Presidency Small Cause Courts Act, 1882?

No, under Section 70 of The Presidency Small Cause Courts Act, 1882, security for the judgment amount is not required if the trial judge ordered that amount to be paid into Court and it has already been paid.

3. What two things must the security cover under Section 70 of The Presidency Small Cause Courts Act, 1882?

Under Section 70 of The Presidency Small Cause Courts Act, 1882, the security must cover the costs of the reference to the High Court and the amount of the contingent judgment.

Test yourself

Q1.Under Section 70 of The Presidency Small Cause Courts Act, 1882, when a contingent judgment is given, the unsuccessful party must provide security for which of the following?

Q2.Under Section 70 of The Presidency Small Cause Courts Act, 1882, what is the immediate legal consequence if the party fails to at once furnish the required security?

Q3.Under Section 70 of The Presidency Small Cause Courts Act, 1882, in what scenario is security for the judgment amount exempted?

Q4.Under Section 70 of The Presidency Small Cause Courts Act, 1882, who must approve the security provided by the party?

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