Karnataka High Court Upholds 2023 Amendments To Karnataka Civil Courts Act & Karnataka High Court Act

The Karnataka High Court upheld the constitutional validity of the Karnataka Civil Courts (Amendment) Act, 2023 and Karnataka High Court (Amendment) Act, 2023.

However, the retrospective effect given to the Karnataka Civil Courts (Amendment) Act, 2023 was held to be arbitrary and unreasonable leading to confusion, absurdity and repugnant to the other provisions of the Act.

The Bench of Justice M.I. Arun observed, “Thus, the amendments made to the Karnataka Civil Courts Act, 1964 and the Karnataka High Court Act, 1961 insofar as it relates to appeals from the Civil Judge (Senior Division) lying to the District Court, and the first appeals lying to the High Court from the City Civil Court being heard by a Single Judge irrespective of pecuniary jurisdiction, cannot be found fault with and are perfectly valid in law.”

Senior Advocate Ameeth Kumar Deshpande represented the Petitioners, while Advocate Kiran represented the Respondent.

Case Brief

A Writ Petition was filed to declare the Karnataka Civil Courts (Amendment) Act, 2023 and the Karnataka High Court (Amendment) Act, 2023 as ultra vires the Constitution of India and consequently are void and ineffective.

The Karnataka Civil Courts (Amendment) Act, 2023 amended Sections 17 and 19 of the Act. The Karnataka High Court (Amendment) Act, 2023 amended Sections 2 and 5 of the Act. The effect of Karnataka Civil Courts Act was that all appeals from the decrees and orders of Senior Civil Judges will now lie to District Court without any pecuniary limits. This removes the earlier distinction where appeal from suits valued above Rs.10,00,000/- had to be filed in the High Court. Crucially, the amendment was given retrospective effect from August 28, 2007.

While the effect of amendment to the Karnataka High Court Act was that the first appeal to the High Court will now mean only those appeals arising from the judgment and decree passed by City Civil Judges and excludes the judgment and decree passed from Senior Civil Judges in Districts. Additionally, all first appeals to High Court would now be heard by a Single Judge, irrespective of the pecuniary limits.

However, the amendments were challenged on the following grounds:

i. The amendment adversely affects the petitioner's vested right to the forum of appeal, which is not merely a matter of procedure but a substantive right.

ii. The retrospective effect given to the Karnataka Civil Courts Act, 1964 is arbitrary, unreasonable and in violation of Article 14 of the Constitution of India.

iii. The amendment acts do not specify any saving clause to protect pending appeals before the High Court and even when the appeals are already heard and reserved for judgments, will now have to be reheard afresh by the new forum.

Court’s Observation

The High Court highlighted that one of the objects of the amendment was to reduce the pendency before the High Court and the time taken for deciding the first appeals and the petitioner failed to show how the ratio laid down in the judgments were applicable to the Writ Petition.

“Thus, the amendments made to the Karnataka Civil Courts Act, 1964 and the Karnataka High Court Act, 1961 insofar as it relates to appeals from the Civil Judge (Senior Division) lying to the District Court, and the first appeals lying to the High Court from the City Civil Court being heard by a Single Judge irrespective of pecuniary jurisdiction, cannot be found fault with and are perfectly valid in law”, the Court held.

With regard to the retrospective effect of the Amendment Act, 2023, the High Court underscored that Section 4 of the Karnataka Civil Courts (Amendment) Act, 2023 gives power to the State Government to issue such orders to remove difficulty that may arise in giving effect to the Act. But the notification dated July 24, 2024 does not remove any difficulty in giving effect to the Act, but has the effect of amending Section 4 of the Karnataka Civil Courts Act, 2023. The Court held that the State Government was not entitled to do it by way of a notification or a Government order. It requires a fresh amendment to the statute to be passed by the State Legislature.

“The learned Additional Advocate General was unable to justify why that particular date was chosen. Further, he was also unable to clarify as to what happens to the cases already decided from 28.08.2007 till today, as there is no saving clause enacted regarding the same. On the contrary, learned Additional Advocate General submitted that the State amendment giving retrospective effect to the Karnataka Civil Courts Act from 28.08.2007 was a mistake and does not make any sense and hence, Order No.LAW-LCE/242/2023, Bengaluru, Dated:24.06.2024 has been passed giving the Karnataka Civil Courts (Amendment) Act, 2023, a prospective effect”, the Court held.

Pertinently, the Court observed that giving retrospective effect to Karnataka Civil Courts (Amendment) Act, 2023 from will result in the cases already decided by the Courts that had jurisdiction prior to the amendment but after August 28, 2007 being nullified in the absence of a saving clause.

Further, the Court underscored that the object of the amendments was to reduce the pendency of first appeals in the High Court by vesting such jurisdiction in District Court where the Presiding Officers were more in number and are also competent to hear the same thereby, reducing the duration of the appeal.

Accordingly, the Petition was allowed in part.

Cause Title: Baburao V. The State of Karnataka

Appearance:

Petitioner: Senior Advocate Ameeth Kumar Deshpande, Advocates Ganesh Subhashchandra Kalaburagi, Deshpande G.V., Anantha S.

Respondent: Advocates Kiran V. Ron, Malhara Rao, Y.H. Vijay Kumar, Sheshadri Jaishankar M

Click here to read/download Order