As per Court Fees Act, 1870, If one has to file a suit or appeal, he has to pay certain amount of court fee.
Table of Contents
Introduction
Section 16 of Court Fees Act, 1870 provides that : When court refers the parties to the suit to any one mode of dispute referred to in section 89 of Code of Civil Procedure, 1908, the plaintiff shall be entitled to receive back the full amount of the fee paid in respect of such plaint.
For refund, court issues a certificate and amount is received back from the area collector.
Section 89 of Code of civil Procedure, 1908
Section 89 of Code of civil Procedure, 1908 prescribes following four modes by which court can refer disputes for settlement
- Arbitration
- Conciliation
- Judicial settlement including settlement through Lok Adalat
- Mediation
Thus if court refers dispute to any of the mode provided by Section 89 of Code of civil Procedure, 1908, full court fee/fees paid is to be refunded to the person who paid such court fee / fee.
High Court of Judicature at Madras vs. M.C. Subramaniam & ors.
Date of decision 17 Feb, 2021]
Hon’ble Supreme Court has held that :
- Section 89 of CPC to be interpreted liberally
- Section 89 of CPC shall cover, and shall also extend to, all methods of out of court dispute settlement between parties that the Court subsequently finds to have been legally arrived at.
Court-Fees (Delhi Amendment) Act, 2010
In the year 2011 Delhi amended the Court Fees Act, 1870 and brought in Section 16A in the main Act.
The amendment was brought by way of Court-Fees (Delhi Amendment) Act, 2010 (Act 1 of 2011). The amendment act was notified on 11 Feb, 2011.
This amendment is applicable in National Capital Territory of Delhi.
Notification can be reached here http://delhiassembly.nic.in/Legislation/Bill_No-08of2010.pdf
Section 16 A of Court-Fees (Delhi Amendment) Act, 2010
As per section 16A:
- If a suit is dismissed as settled out of court before evidence is recorded; or
- If a suit is compromised ending in compromise decree before evidence is recorded; or
- An appeal is disposed of before the commencement of hearing of such appeal.
then, half of the amount of all fees paid in respect of the claim or claim in suit or claim in appeal shall be ordered by the court to be refunded to the parties by whom the same has been respectively paid.
The intention of the Delhi amendment has been to provide some relief in those cases where route of section 89 Code of Civil Procedure, 1908 not taken.
Judgements
Section 89 of CPC shall cover, and shall also extend to, all methods of out of court dispute settlement between parties that the Court subsequently finds to have been legally arrived at. [The High Court of Judicature at Madras vs. M.C. Subramaniam & ors. Date of decision 17 Feb, 20210]
Section 16 of the Act (Court Fees Act, 1870) is applicable in all circumstances in which parties have arrived at settlement irrespective of state of proceeding [J K Forgings vs. Essar Construction India Limited & Ors.]
Full amount of court fee is to be refunded if case falls within the requirement of Section 16 of Court Fees Act, 1870 [Nutan Batra vs M/s Buniyaad Associates]
Conclusion
In view of the recent Hon’ble Supreme Court decision [The High Court of Judicature at Madras vs. M.C. Subramaniam & ors.Date of decision 17 Feb, 20210] inall methods of out of court dispute settlement between parties that the Court subsequently finds to have been legally arrived at, full court fee/fees paid is to be refunded to the person who paid such court fee / fee.
Section 16 of Court Fee Act, 1870 has been made applicable to even a private settlement arrived at between the parties by this Supreme Court decision.
In this case a private settlement was arrived at, and a memo to withdraw the appeal was filed before the High Court. Court held : In such a case as well, the appellant, i.e., Respondent No. 1 herein would be entitled to refund of court fee.