Full refund of court fee is legal entitlement when dispute is settled: Delhi High Court

The Delhi High Court recently held that parties who amicably settle a suit, counterclaim or appeal are entitled to a full refund of the court fee paid and there is no need to file a separate application seeking refund [Hitech Enterprises v Modern Construction Company Delhi].

A Division Bench of Justices Anil Khsetarpal and Bharat Parashar observed that following an amendment to Section 16 of the Court Fees Act by the Delhi government, refund of court fee when the case is settled is a “substantive statutory entitlement”. 

“In view of the aforesaid, as and 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 in terms so arrived at, shall direct refund of the court fees. The Court shall also issue a certificate authorizing the parties to receive back full amount of court fees in respect of claim/counter-claim, thereby obviating the necessity of any obligations by parties to seek such refund,” the Court said. 

The Court also directed the Delhi government to take necessary administrative steps to ensure that such refunds are processed in a time-bound manner upon presentation of the certificate.

“Ld Standing Counsel (Civil), GNCTD is requested to ensure that the concerned authorities take necessary administrative steps in all such kind of cases, thereby avoiding unnecessary litigations in the Courts,” the Court ordered. 

It also sent its order for circulation among all the Principal District and Sessions Judges.

The High Court passed the order on an application for refund of court fee in an appeal filed by Hitech Enterprises against Modern Construction Company Delhi.

Advocates Parveen Kumar Aggarwal and Piyush Biswas represented Hitech Enterprises. 

Modern Construction was represented by advocate Sumit K Batra. 

[Read Order]