LI Network
Published on: December 20, 2023 at 15:37 IST
The Delhi High Court will determine whether a plaintiff, involved in a civil suit with a privately settled dispute and devoid of any Alternative Dispute Resolution (ADR) mechanism, is entitled to a complete refund of court fees or only half.
Justice C Hari Shankar has forwarded this crucial question to a division bench, emphasizing the necessity to decide the matter in light of Sections 16 and Section 16A of the Court Fees Act.
The Court cited varying judgments from the Supreme Court and division benches and highlighted the need for resolution by a Division Bench of the Court.
The court acknowledged the Supreme Court’s ruling in the case of High Court of Judicature at Madras v. M.C. Subramaniam, which addressed private settlements. However, it underscored the need to consider whether this decision is applicable in Delhi, given the distinct statutory provisions under Section 16A of the Court Fees Act, which is exclusive to the national capital.
The divergence in views between the Nutan Batra case and the Ajay Mahajan case further complicates the matter. Nutan Batra held that a plaintiff is entitled to a full court fee refund only in ADR settlements (under Section 16) and half if settled privately (under Section 16A).
Conversely, Ajay Mahajan stated that in a private settlement without ADR intervention, the plaintiff is entitled to a complete refund.
In the specific case under consideration, involving V Guard Industries Limited and Mahavir Home Appliances, the court decreed the suit based on the amicable settlement between the parties.
Justice Shankar pointed out the dual statutory provisions in Delhi, with Section 16 allowing a full court fee refund for ADR or judicial settlements and Section 16A providing half the fee refund for private settlements without ADR intervention.
The court concluded by referring the question to the Division Bench for a definitive decision on whether a plaintiff, settling a dispute privately without ADR intervention, is entitled to a complete or only half the refund of court fees.
Title: V GUARD INDUSTRIES LTD v. MS MAHAVIR HOME APPLIANCES AND ANR. & ANR.