1998 Bar: Does the MTC have jurisdiction over the counterclaim? (2%)

1998 Bar: In an action for unlawful detainer in the MTC, defendant X raised in his answer the defense that plaintiff A is not the real owner of the house subject of the suit. X filed a counterclaim against A for the collection of a debt of P80,000 plus accrued interest of P15,000 and attorney‘s fees of P20,000. Does the MTC have jurisdiction over the counterclaim? (2%)
As jurisdiction is conferred by law, yes, the counterclaim is within the jurisdiction of the MTC because the principal demand is P80,000 exclusive of interest and attorney‘s fees (Sec. 33, BP 129, as amended). However, inasmuch as all actions for forcible entry and unlawful detainer are subject to summary procedure and since the counterclaim is only permissive, it cannot be entertained by the MTC (Revised Rules on Summary Procedure).