If it becomes apparent during the proceedings that the court lacks pecuniary jurisdiction, the immediate course of action is for the court to cease further adjudication and return the plaint under Order VII Rule 10 of the Code of Civil Procedure, 1908, so that it can be filed before the court having proper pecuniary authority. Either party—most often the defendant—should formally raise this objection as soon as the issue comes to light, ideally at the earliest stage of the proceedings, such as in the written statement or through a preliminary objection application, in line with Section 21(2) CPC, which restricts such challenges to early stages. However, if the lack of pecuniary jurisdiction is so fundamental that it renders the proceedings void ab initio (without legal authority), the objection can still be considered even at a later stage, including appeal, as no decree passed by a court lacking jurisdiction can be legally sustained. The key principle is promptness and good faith—the earlier the objection is raised, the stronger its procedural validity and the greater the chance of avoiding wasted costs and delay.
