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Report No. 163

2.9 Clause 11 of the Amendment Bill proposing to substitute the existing section 102.-

By this amendment, not only the value of subject-matter of the suit is sought to be raised from Rs. 3,000 to Rs. 25,000, even the existing restriction as to the nature and character of the suit is also sought to be done away with. In other words, according to the proposed/substituted section 102, there shall be no second appeal at all where the amount or value of the subject-matter of the original suit does not exceed Rs. 25,000.

2.9.1. While some participants/respondents supported this proposal, quite a few of them opposed the removal of restriction as to the nature and character of the suit while welcoming proposed enhancement of value of the subject-matter from Rs. 3,000 to Rs. 25,000. It was pointed out by several participants that having regard to the provisions contained in section 11 of the Code incorporating the rule of res judicata, many decrees made by the courts in suits the value of the subject-matter whereof is less than Rs. 25,000 may operate as res judicata even in matters of far higher value.

2.9.2. The Law Commission is of the opinion that while the amount or value of the subject-matter of the original suit in proposed section 102 be raised from Rs. 25,000 to Rs. 50,000, the proposed removal of restriction as to the nature and character of the suit may be dropped. (At present, the provision is limited to suits of the nature cognizable by courts of Small Causes.) It may be remembered that a second appeal is not available on all points but is restricted only to substantial questions of law.

In such a situation, abolition of second appeal altogether in all matters the value of subject-matter whereof does not exceed Rs. 25,000 may not be an appropriate step. The reason for the Law Commission recommending the raising of monetary limit from Rs. 25,000 to Rs. 50,000 is that generally speaking, money suits are comparatively simple suits which fact is recognised and affirmed by the fact that the Legislature has thought it fit to enact Order XXXVII providing for summary procedure in many money suits irrespective of the monetary value thereof.

Situation may be different in the case of other types of suits. In this connection, it may be recalled that suits for mere permanent injunction are valued at a low figure unrelated to the value of the subject-matter of the suit. This is indeed permitted by the various court-fees Acts. Therefore, a provision of the nature proposed may result in grave injustice in such cases.



The Code of Civil Procedure (Amendment) Bill, 1997 Back




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