(1) The following suits shall be cognizable by a Panchayati Adalat, namely :—
(i) suits for ascertained sums not exceeding three thousand rupees ;
(ii) suits for damages not exceeding three thousand rupees for breach of contract not effecting immovable property ;
(iii) suits for compensation for wrongly taking or injuring movable property not exceeding three thousand rupees in value ;
(iv) suits for specific movable property or for the value thereof not exceeding three thousand rupees only :
Provided that no Panchayati Adalat shall take cognizance of any suit––
(a) by or against a minor or a person of unsound mind ;
(b) by or against the [Chairperson] or any member of the Panchayati Adalat ;
(c) by or against the Sarpanch or any Panch of the Halqa in his official capacity ;
(d) in respect of any dispute or matter in which a suit or application may be brought or made before a Revenue Officer ;
(e) in respect of any matter directly and substantially in issue in a previously insituted suit between the same parties or those under whom they claim, which is pending in or has been heard and finally decided by a court of competent jurisdiction or by a Panchayati Adalat ; and
(f) by or against the 2 Government of the Union territory of Jammu and Kashmir or a Co-operative Society or any employee of the local authority or an officer or servant of a local authority in his official capacity.
(2) The [Government of the Union territory of Jammu and Kashmir] may, by notification in the [Official Gazette], confer on any Panchayati Adalat the jurisdiction to hear and dispose of suit, of the nature specified in sub-section (1) of which the amount or value does not exceed three thousand rupees.