1. ' This suit under Order XXXVII, Rules 1 and 2, C.P.C. For recovery of Rs.5, 50,000 (Rupees Five Lacs and fifty Thousand) has been filed by the plaintif f against the defendant. The claim of the plaintif f is based on a Demand Promissory Note alleged executed by defendant in favour of the plaintif f for Rs.5,00,000 (Rupees Five Lacs). He has also claimed Rs.50,000 (Rupees Fifty Thousand) as interest at the rate of 13% per annum as due from the date of the execution of the promissory note till filing of the suit. He has also claimed interest/mark-up from the date of the filing of the suit till realization of the amount as shown in the plaint.
2. ' A preliminary objection has been taken by the learned counsel for the defendant that this Court has no pecuniary jurisdiction as amount shown in the demand promissory note is only for Rs.5,00,000 and that too without showing any interest payable on the said amount. It is therefore argued that the suit should have been filed before District Court which has pecuniary jurisdiction upto Rs.5,00,000 (Rupees Five Lacs) and the plaint is liable to be dismissed or returned under Order VII, Rule 10, C.P.C. In rebuttal, the learned counsel for the plaintif f has argued that in fact the suit is for recovery of Rs.5,50,000 (Rupees Five Lacs and Fifty Thousand) i.e. The principal and the interest hence the District Court has no jurisdiction to entertain a suit beyond the pecuniary limit of Rs.5,00,000 (Rupees Five Lacs) as such this suit has been rightly filed before this Court.
3. ' I have considered the arguments of the learned counsel for the parties. Indeed, a District Court has the jurisdiction in respect of a suit value whereof is upto Rs.5,00,000. A suit having valuation above Rs.5,00,000 is to be filed in the High Court. No doubt the promissory note is only for Rs.5,00,000 and it does not contain the rate of interest or the liability of the borrower to pay any interest upon the same to the lender but in view of sections 79(2) and 80 of the Negotiable Instruments Act, 1881, if a promissory note or bill of exchange is silent as regards interest or does not specify the rate of interest, notwithstanding any collateral agreement relating to interest between the parties, interest at the rate of 6% per annum on the principa l money is admissible from the date on which amount becomes payable and until tender or its realization. According to the plaint, the promissory note was executed on 26-6-1998 and in view of the non-payment, a legal notice demanding the said amount was sent to the defendant on 6th November , 1998 which remained unresponded. Thus it will be seen that whatever amount of the interest as claimed by the plaintif f or permissible under the law on a higher rate or the rate as specified by law, if added to the principal, the value of the suit shall become more than Rs.5,00,000 and as such this Court has jurisdiction to entertain this suit. Objection raised by the learned counsel for the respondent has no force hence overruled.
4. ' Put up for further proceedings.
5. Objection overruled.