(1)  Where in any proceeding before any inferior court of civil jurisdiction having jurisdiction at law and in equity within the meaning of this Part any defence or counter-claim of the defendant involves matter beyond the jurisdiction of the inferior court, such defence or counter-claim shall not affect the competence or the duty of the inferior court to dispose of the whole matter in controversy so far as relates to the demand of the plaintiff and the defence thereto, but no relief exceeding that which the inferior court has jurisdiction to administer shall be given to the defendant upon any such counter-claim: Provided always that in such case it shall be lawful for a judge of the Supreme Court, if he shall think fit, on the application of any party to the proceeding, to order that the whole proceeding be transferred from such inferior court to the Supreme Court, and (if the proceeding is one which can be proceeded with in a district registry) the judge may order it to be proceeded with in any district registry in which it can be proceeded with, and in any such case the record in such proceeding shall be transmitted by the Registrar or other proper officer of the inferior court to the Registrar of the Supreme Court, or (if the judge orders the proceeding to be proceeded with in a district registry) to the district registrar at the registry in which the proceeding is to be proceeded with, and the same shall thenceforth be continued and prosecuted in the Supreme Court as if it had been originally commenced therein.

(2)  The jurisdiction of any such inferior court in cases of counter-claim shall not be excluded by reason –

(a) that the counter-claim involves matter not within the local jurisdiction of such inferior court, but within the jurisdiction of any other inferior court of civil jurisdiction of this State;

(b) that, where the counter-claim involves more than one cause of action, as to each of which the defendant might have maintained a separate action, each such cause of action being within the jurisdiction of the inferior court, the aggregate amount of the counter-claim exceeds the jurisdiction of the inferior court; or

(c) that the counter-claim is for an amount of money exceeding the jurisdiction of the inferior court; provided that the plaintiff does not object in writing (within such time as may be prescribed by Rules of Court ) to the inferior court giving relief exceeding that which such court would have had jurisdiction to administer irrespective of the provisions of this section.

(3)  In any case where the counter-claim in any action in any such inferior court involves matter which, notwithstanding the provisions of subsections (1) and (2) , is beyond the jurisdiction of such court, the inferior court may, on such terms, if any, as it may think just, either adjourn the hearing of the case or stay execution on the judgment for such time as may be necessary to enable any party to apply to remove the proceedings into the Supreme Court, or to enable the defendant to prosecute in a court of competent jurisdiction an action for the purpose of establishing his counter-claim; and in default of any such application being made, or action brought, the inferior court shall, after the expiration of the time limited, have jurisdiction to hear and determine the whole matter in controversy to the same extent as if the whole matter were within the absolute competence of the inferior court.