By Palak Jain
Introduction
Levy of court fees was an entire foreign subject to ancient India. Tracing back in time to the Mughal period and the era before it, administration of justice was considered to be the basic duty of the Ruler as the protector and guardian of the people.
Thus, levy of charges for dissolution of any disputes between parties or parties approaching for grievances or any civil dispute before the ruler was free. It was during the British domination in India when the concept of court fees was brought into existence back in 1795.
Initially, the fee laid for courts was nominal but over time it gradually enhanced in order to curb the institution of groundless and frivolous litigation that hindered and abused the process of Courts. It was because of such factors that the Court Fess Act, 1870 was established.
A Court fee is a fee that is levied on individuals or parties that seek services of the Court for judicial remedies. Thus, a Court fees is inflicted on the litigant to contest a case in the Court of law.
Purpose of Court fee
The mere purpose of Court fees is to manage the administrative expenses incurred upon it during the course of a case. Though justice rendered should not have a price on it but it essential to have Court fees for the smooth and efficient functioning of the judiciary.
In the case of Secretary, Government of Madras v. Zenith Lamps[1], it was held that the fees collected by the Court are to cover the cost incurred upon it during the procedure and not for states to make revenue out of it.
It was further held that court fees are neither taxes nor duty. It is the correlation between the services rendered (cost of administration of civil justice) and levy of Court fees that must exist and not of arithmetic exactitude.
Levy of court fees in the High Court
Following are some of the subject matters that require due payment of Court fee ad valorem i.e. in proportion to the estimated value or amount of the case:
| Sr. No | Subject Matter | Court fee |
| 1. | A plaint or memorandum of appeal | Difference between amount of compensation awarded and the amount claimed. |
| 2. | A plaint in a suit for possession of Specific Relief Act[2] | A fee of one-half the amount prescribed in the foregoing scale. |
| 3. | Application for review of judgment | One-half of the fees leviable on the plaint or memorandum of appeal. |
| 4. | Certificate under the Succession Certificate Act, 1925 | 2 per centum on the value of the debts and 3 per centum on debts to which the certificate is extended under Section 376 of the Act |
Following are some of the subject matters that where the fee is fixed:
| Sr. No | Subject Matter | Court fee | |
| 1. | Suit for recovery of property, breach of contract or damages | Amount or value exceeds Rs 1,00,000 and not Rs 5,00,000 | Four percent on 1,00,000 and two percent on the remaining amount or value |
| 2. | One-time process fees at the time of filing suits: | ||
| For plaintiff | Thousand rupees | ||
| For defendant | Five hundred rupees | ||
| 3. | Mukhtarnama or Vakalatnama | Twenty five rupees | |
| 4. | Plaint, in a suit for possession | One half of the amount | |
| 5. | Suit for relief under section 91 or 92 of the Code of Civil Procedure, 1908 | Fifty rupees | |
| 6. | Summons, notice or other process not being a warrant of arrest or of attachment | Three rupees | |
| 7. | Warrant of attachment | Six rupees | |
| 8. | Warrant of arrest | Six rupees |
Non-payment or underpayment of court-fees
According to section 28, of the Court Fess Act, 1870, if any document through mistake or inadvertence is received, filed or used in any Court or office without being properly stamped, the presiding Judge or the heed of the office, as the case may be, or, in the case of a High Court, any Judge of such Court, may, if he thinks fit, order that such document be stamped as he may direct; and, on such document being stamped accordingly, the same and every proceeding relative thereto shell be as valid as if it had been properly stamped in the first instance.[3]
Refund of fees paid
According to section 13 of the Court Fees Act, 1870, if a lower Court reject any plaint or appeal on the grounds mentioned in the Civil Procedure Code, 1908, which is either order to be received or if a suit is remanded in appeal, or on any grounds prescribed under section 351 of the Civil Procedure Code, the Appellate Court shall grant a certificate to the appellant authorizing him to receive the amount paid by him for the fee on the memorandum of appeal by the collector.
Section 14 of the Court Fees Act, 1870, deals with refunds of fee on application of judicial review wherein the application is filed after or on the ninetieth day from the date of the decree.
If an application for review of judgment is admitted and on rehearing, the Court reverses or modifies its Judgment passed in its prior decision on grounds of mistake in law or fact, the applicant is entitled for refund of the amount paid by him for such review in the form of certificate.
Procedure for Payment
According to the Court Fees Act, 1879, all sort of Court charges imposed under the Act shall be paid through stamps. This is the general method of payment of court fees all through the country.
However, whether the stamps should be adhesive or impressed or partially adhesive or partially impressed is to be governed by the state government under Section 26 of the act. The state government decided the nature of these stamps and published such directions in the official gazette every once in a while.
There are three ways available for stamping of documents that require court fee stamp. In every Court premises there are stamp vendors who sell judicial as well as adhesive stamps and papers regardless of the amount of the value.
The Court premises also have treasures where stamp papers and stamps are issued for the payment process in both these methods payment is to be made in cash in order to obtain them.
It is advised to ensure that these vendors are government authorized in order to make sure that the stamps are not forged stamps and are genuine. These forged stamps are inadmissible in court and hold no value. There is also an option of e-court fee payment available.
The Delhi High Court, in July 2013 initiated and launched the system of e-court fee payment. At times the value Court fees is up to the maximum limit and to ensure the safe payments of the same is it is through government portal like GRAS which makes it easier for the process of payment and is also convenient.
However, these facilities have been available only in the stats of Himachal Pradesh, Haryana, Maharashtra, Delhi, Punjab, Chandigarh, Jharkhand, Tamil Nadu and Uttar Pradesh.
Conclusion
A Court fee is levied for the purpose of managing administrative charged that is incurred by Courts during the process of a case. A Court-fee should not be a thing that demotivates or discourages a person from seeking justice.
The law commission report of India suggests a need to fix maximum court-fees chargeable[4].
In the case of Delhi High Court Bar Association v. Government of NCT of Delhi[5] , the petitioners challenged the constitutional validity of Court Fees (Delhi Amendment) Act, 2012. The Court critically condemned the exorbitant Court fees charged by the Delhi government. As a result the Court Fees (Delhi Amendment) Act, was held unconstitutional and was struck down.
References:
- Secretary, Government of Madras v. Zenith Lamps (1973) 1 SCC 162 ↑
- Section 6, The Specific Relief Act, 1963 ↑
- /legislative.gov.in/ ↑
- Report No. 220 Law commission of India, March 2009. ↑
- Delhi High Court Bar Association v. Government of NCT of Delhi indiankanoon.org/ ↑