Litigant Entitled To Refund Of Court Fees If Matter Settled Outside Court Even Without Invocation Of S.89 CPC: MP High Court

The Madhya Pradesh High Court recently held that a Litigant shall be entitled to refund of court fees if the matter in issue has been settled by the parties outside the Court, even without invocation of Section 89 CPC.

In view of the aforesaid, I am of the considered opinion that even if the matter is settled by the parties outside the Court without invoking the provisions of section 89 CPC, the appellant while withdrawing his first appeal, is entitled to the refund of full Court fees as provided under section 16 of the Court Fees Act, 1870.

Facts of the case were that after execution of the impugned decree, the parties to the lis settled their dispute outside the Court. Corollary to the same, the Appellant/defendant wished to withdraw the first appeal. In such circumstances, it was prayed that the court fee of Rs.52,750/- paid by him in the first appeal be refunded, regarding which the Respondent had no objection.

Examining the submissions of parties and documents on record, the Court condensed the legal question to be as to whether it could, in the aforesaid circumstances, pass order for refund of court fees as provided under Section 16 of the Court Fees Act, 1870. Perusing the decisions of various High Courts, the Court answered the question in affirmative.

Accordingly, the Court directed the Registry to issue certificate regarding refund of Court fees of Rs.52,750/-, authorising the Appellant to receive the full amount of the court fee paid in respect of first appeal, from the Collector. With the aforesaid direction, the appeal was disposed of.

Case Title : DAYARAM v SMT. LAXMI AGRAWAL

Case citation: 2022 LiveLaw (MP) 221

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