New Delhi, Sep 24 Full refund of court fee in a suit or appeal which has been disposed of or settled between the parties is a substantive statutory entitlement, the Delhi High Court has held.
The court said that in view of the amended provisions of the Court Fees Act, no separate application or petition ought to be required for such refund once the matter has been disposed of as settled or compromised and the court has issued a certificate in this regard.
A bench of Justices Anil Kshetarpal and Bharat Parashar also directed the Delhi government to take necessary administrative steps to ensure that the court fee is refunded in a time-bound manner in all such matters on presentation of the certificate issued by the court.
“In view of the amended provision, full refund of court fee, paid in respect of a suit, counter-claim or appeal being disposed of as settled or compromised, is a substantive statutory entitlement. Consequently, no separate application or petition ought to be required for such refund once the matter has been disposed of as settled or compromised and the court has issued a certificate to that effect,” the bench said in an order passed on September 21.
The high court passed the order while dealing with an application seeking a refund of court fee in an appeal filed by a company – M/s Hitech Enterprises – against another entity- M/s Modern Construction Company. The court noted that the appeal was disposed of pursuant to a settlement between the parties.
The court was informed that the Delhi government amended Section 16 of the Court Fees Act by a notification of March 6, by repealing or substituting the erstwhile Section 16A.
As per the amended provision, where the parties to a suit or appeal settle their dispute amicably, with or without the intervention of the court and with or without invoking any of the modes of settlement of dispute, referred to under the Code of Civil Procedure and the suit or counter claim or appeal is disposed of as settled or compromised, the plaintiff should be entitled to a certificate from the court authorising him to receive back from the collector/competent officer, the full amount of fee paid in respect of such plaint.
In view of this, the bench said when a matter is settled with or without invoking any modes referred to in Section 89 of CPC, the court while disposing of the matter should “direct refund of the court fees”.
The court should also issue a certificate authorising the parties to receive back full amount of court fees in respect of claim or counter-claim, thereby obviating the necessity of any obligations by parties to seek such refund.
The bench asked the standing counsel (civil) of Delhi government to ensure that the authorities concerned take necessary administrative steps in all such cases, avoiding unnecessary litigations in the courts.
It said that a copy of this order be sent to the registrar general of the high court for further circulation to all the principal district and sessions judges here.
(PTI News)
