Order 7 Rule 10 CPC Return of Plain Pecuniary Jurisdiction The court’s jurisdiction is based on the Specified Value of the dispute, which is determined by adding the value of the claim and the counterclaim
SIMENTECH vs BHARAT OMPCOMM 348/22 12/01/24 [ DELHI HIGH COURT ]
CORAM: HON’BLE JUSTICE SANJEEV NARULA
• Order 7 Rule 10 CPC Return of Plain Pecuniary Jurisdiction The court’s jurisdiction is based on the Specified Value of the dispute, which is determined by adding the value of the claim and the counterclaim In this case, the Petitioner claimed INR 2,22,83,947.3, but the Respondent successfully argued that the correct value is INR 1,79,08,623.63 – Because this is less than the INR 2 crore threshold, the court does not have jurisdiction to hear the case – The main arguments made by the Respondent were that the Petitioner had incorrectly calculated the interest on the claim and counterclaim – The Respondent argued that interest should only be calculated up to the date of arbitration, not the date the petition was filed – The court agreed with this argument, and found that when the correct interest is used, the Specified Value falls below the INR 2 crore threshold – The Petitioner also argued that the court did not have the jurisdiction to decide the issue of pecuniary jurisdiction – However, the court rejected this argument, finding that it has the power to decide its own jurisdiction – As a result of the court’s decision, the petition will be returned to the Petitioner – The Petitioner can then file the petition with a court that has jurisdiction to hear the case.
I.A. No. 15500/2022 (u/Order VII Rule 10 r/w Section 151 of the Code of Civil Procedure, 1908, for return of the petition)
1. Respondent (Claimant in the arbitration proceedings) invokes Order VII Rule 10 of the Code of Civil Procedure, 1908 (“CPC”) and seeks return of the petition on ground of lack of pecuniary jurisdiction of this Court entertain this Petition. On 13th February, 2023, this Court had referred the matter to the Joint Registrar (“JR”) for computation of Specified Value. Accordingly, vide order dated 19th July, 2023 (“JR Order”), the JR has ascertained the Specified Value to be INR 1,79,08,623.63. The Petitioner contests this valuation, asserting that the determination is erroneous as itfails to consider several crucial components, which, if accounted for, could significantly impact the calculated Specified Value. In light of these conflicting positions, this Order will address and decide upon the issue of the Specified Value and the Court’s pecuniary jurisdiction.
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