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Assume an ordinary civil court has pecuniary jurisdiction up to ₹3,00,000. A sues for ₹3,00,000 and…

On the stated assumption, the filing claim is ₹3,00,000 and is within the court's limit. Pendente lite and future interest under section 34 does not increase the institution…

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Assume an ordinary civil court has pecuniary jurisdiction up to ₹3,00,000. A sues for ₹3,00,000 and claims interest at 18% per annum only from institution until realization. No pre-suit interest or other quantified relief is claimed. Which statement is correct?

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Answer and explanation

Correct answer C

On the stated assumption, the filing claim is ₹3,00,000 and is within the court's limit. Pendente lite and future interest under section 34 does not increase the institution valuation. The court decides the permissible rate; a prayer for 18% does not establish entitlement to that rate.

See sections 15 and 34 and Order VII rule 2 of the Code of Civil Procedure, 1908.

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Option A

Post-institution interest does not require return of a plaint whose filing valuation is within the assumed limit.

Option B

Jurisdiction is not lost merely because lawful post-institution interest increases the decretal total.

Option C

The court can try the suit on the supplied premise; the claimed 18% is not automatically awarded.

Option D

Section 34 permits the court to decide interest; a fresh proceeding for that interest is not the required consequence.

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