Order VII Rule 2 CPC - Amount Claimed in Money Suits
Order VII Rule 2 of the Code of Civil Procedure, 1908 deals with the amount to be specified in a plaint when a plaintiff seeks recovery of money. The general rule requires a precise sum; certain claims whose value cannot reasonably be determined at filing may be stated approximately.
Order VII Rule 2: Statutory provision
Where the plaintiff seeks the recovery of money, the plaint shall state the precise amount claimed:
But where the plaintiff sues for mesne profits, or for an amount which will be found due to him on taking unsettled accounts between him and the defendant, or for movables in the possession of the defendant, or for debts of which the value he cannot, after the exercise of reasonable diligence, estimate, the plaint shall state approximately the amount or value sued for.
The wording above presents the provision in readable form. Applicable local amendments and court rules should also be checked.
Meaning and purpose of Order 7 Rule 2
A plaint is the pleading by which a plaintiff institutes a civil suit. In an ordinary money-recovery action, the amount demanded must be clearly stated so that the defendant knows the financial claim and the court can assess the relief sought, valuation and court fees.
A plaintiff should distinguish the principal sum from any separately claimed interest and other relief. The pleaded figure should be supported by the relevant facts and records, not merely a broad or unsupported estimate.
When an approximate amount may be stated
- Mesne profits: profits that a person in wrongful possession of property actually received, or might with ordinary diligence have received, together with interest on those profits, within the meaning of Section 2(12) CPC. The amount may require an inquiry or evidence.
- Unsettled accounts: an amount that will be determined after accounts between the parties are taken, where the final balance is not yet known.
- Movables in the defendant's possession: where the plaintiff cannot reasonably specify the precise value of the movables claimed.
- Debts not reasonably estimable: where the value cannot be estimated precisely despite reasonable diligence.
The exception does not mean that every money claim can be filed without calculation. The plaintiff should explain why a precise sum is unavailable and give a reasonable approximate value where the rule permits.
How to draft a money recovery plaint
- Identify the basis of liability: state the contract, transaction, loan, invoice, obligation or other material facts giving rise to the claim.
- Specify the principal amount: identify the exact sum due where it can be calculated, with dates and an intelligible breakdown.
- Address interest separately: where interest is sought, set out its basis, rate, period and calculation; the additional disclosure requirements of Order VII Rule 2A apply in the cases to which that rule extends.
- Explain any estimate: if relying on the exceptions in Rule 2, identify the relevant category and why the final amount requires accounts, valuation or inquiry.
- State valuation and relief: comply with Order VII Rule 1 on valuation and Order VII Rule 7 on the relief sought, as well as applicable court-fee laws.
Illustrative examples
| Type of claim | Approach to pleading |
|---|---|
| Unpaid invoice of Rs. 2,50,000 | State the precise principal sum and separately explain any claim for interest. |
| Recovery based on unsettled partnership or business accounts | State an approximate claim where permitted and explain why accounts must be taken to determine the final balance. |
| Claim for mesne profits | Give a reasoned estimate, relevant occupation period and supporting facts; final assessment may require inquiry. |
These are illustrative drafting scenarios, not prescribed formats or calculations.
Related legal provisions
- Order VII Rule 1 CPC: particulars of the plaint, including cause of action, jurisdiction, relief and valuation.
- Order VII Rule 2A CPC: additional particulars when interest is sought; inserted for commercial disputes under the Commercial Courts Act framework.
- Order VII Rule 7 CPC: relief must be specifically stated.
- Order XX Rule 12 CPC: decrees for possession and mesne profits, including inquiries where appropriate.
- Section 34 CPC: court's power regarding interest in money decrees, subject to the provision's conditions.
Official legislation and further reading
Read the Code of Civil Procedure, 1908 on India Code and the India Code legislative database for official legislative material and amendments. Also see Order VII Rule 2A on interest claims and the CPC provisions index.
Frequently asked questions
Must every money suit state an exact amount?
Ordinarily yes. Order VII Rule 2 requires a precise amount, subject to the stated exceptions where a reasonable approximate amount or value may be pleaded.
Can a plaintiff claim mesne profits without knowing the final figure?
Yes. The rule permits an approximate claim for mesne profits; the final amount may be established through evidence or a court-directed inquiry.
Does Order VII Rule 2 determine the rate of interest?
No. The rule concerns stating the money claimed. Interest claims must be considered under the applicable contractual or statutory basis and other provisions, including Section 34 CPC where relevant.
This article is general legal information. Procedural requirements may vary with the forum, nature of suit and applicable local amendments.