Facts:The petitioner, Anil Kamath, had filed a suit to recover money from the respondent, Vasu Naik N. The dispute was referred to the Lok Adalat, where the parties reached an amicable settlement. Following this, a joint memo was filed before the Trial Court, leading to the dismissal of the suit on 28-09-2002. However, the petitioner also sought a refund of court fees, which the Trial Court rejected on the ground that an affidavit had been taken as evidence, indicating some progress in the case. The petitioner challenged this order through a Civil Revision Petition (CRP).
Issue:Whether the petitioner was entitled to a refund of full court fees under Section 16 of the Court Fees Act, 1870, even though the case had made procedural headway before being settled in the Lok Adalat?
Reasoning of the Judge:
1. Section 16 of the Court Fees Act, 1870, inserted by Act 46 of 1999, states that when a court refers a case to an alternative dispute resolution (ADR) method under Section 89 of the CPC, the plaintiff is entitled to a full refund of court fees.
2. The Trial Court’s rejection of the refund request was based on a misinterpretation—the fact that an affidavit had been filed in evidence did not preclude the refund under Section 16.
3. The legislative intent behind Section 16 was to incentivize settlements through ADR by ensuring that court fees are not a deterrent. The provision applies regardless of the stage of proceedings at which the dispute is settled.
4. Since the dispute was settled before the Lok Adalat, it squarely fell under Section 89 CPC, making the petitioner entitled to a full refund of court fees.
Decision:
The Civil Revision Petition was allowed.
The Trial Court’s order rejecting the refund of court fees was set aside.
The Trial Court was directed to ensure that the original plaintiff (petitioner) receives a full refund of the court fees paid.
No order as to costs.
Case Details:Anil Kamath Vs. Vasu Naik N.
Date of Order: 04-05-2003
Case No.: Civil Revision Petition No. 1240 of 2003
Neutral Citation: (2006) 39 AIC 419 : (2006) 2 ICC 409 : (2006) ILR(Karnataka) 295
Court: Karnataka High Court (Single Bench)
Judge: Hon’ble Justice M.F. Saldanha
