Supreme Court Rejects Refund Claim For Private Out-of-Court Settlement : 'Court Fee Refund Only If Case Settled Through ADR Mechanisms'

The refund of court fees is permissible only if the

matter is referred to Arbitration, Conciliation, judicial

settlement, including through Lok Adalat or mediation for

settlement and the case is decided in terms of such a

settlement and not otherwise. {Para 6}

7. In the case at hand, the settlement in terms of which

the second appeal was decided by the High Court is not on

reference to any of the above authorities/fora rather it was

an amicable settlement out of the court.

8. Accordingly, we are of the opinion that the petitioner

is not entitled to refund of the court fees and the High

Court has not committed any error or illegality in refusing

such a prayer.

 S U P R E M E C O U R T O F I N D I A

 RECORD OF PROCEEDINGS

PETITION(S) FOR SPECIAL LEAVE TO APPEAL (C) NO(S). 723/2023

JAGE RAM Vs VED KAUR & ORS.

Date : 28-01-2025 This petition was called on for hearing today.

CORAM :

 HON'BLE MR. JUSTICE PANKAJ MITHAL

 HON'BLE MR. JUSTICE AHSANUDDIN AMANULLAH

 UPON hearing the counsel the court made the following

 O R D E R

1. Heard learned counsel for the parties.

2. The second appeal was decided by the High Court in terms

of the settlement, a signed copy of which was produced

before it.

3. Since the appeal was decided in terms of the settlement

and not on merits, the petitioner prayed to refund the court

fees paid by him in the trial Court as well as in the First

Appellate Court and Second Appellate Court.

4. In the second appeal, the petitioner had paid

Rs.29,053/- (Rupees Twenty-Nine Thousand Fifty-Three only).

5. The High Court by the impugned order has rejected the

prayer so made by the petitioner by holding that no ground

for refund has been made out.

6. The refund of court fees is permissible only if the

matter is referred to Arbitration, Conciliation, judicial

settlement, including through Lok Adalat or mediation for

settlement and the case is decided in terms of such a

settlement and not otherwise.

7. In the case at hand, the settlement in terms of which

the second appeal was decided by the High Court is not on

reference to any of the above authorities/fora rather it was

an amicable settlement out of the court.

8. Accordingly, we are of the opinion that the petitioner

is not entitled to refund of the court fees and the High

Court has not committed any error or illegality in refusing

such a prayer.

9. Accordingly, the Special Leave Petition lacks merits

and is dismissed. Pending application(s), if any, shall

stand disposed of.

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