Full court fee refund on settlement is statutory right: Delhi High Court

The Delhi High Court has ruled that parties are entitled to a full refund of court fees when a suit, counter-claim or appeal is disposed of upon an amicable settlement. A Division Bench of Justices Anil Khetarpal and Bharat Parashar held that this refund is a substantive statutory entitlement under the amended Section 16 of the Court Fees Act, 1870, and no separate application is required.

The Court observed that the Delhi government amended Section 16 on March 6, repealing the erstwhile Section 16A. Under the amended provision, a plaintiff or counter-claimant who settles a dispute at any stage, with or without court intervention, is entitled to a certificate authorising refund of the full court fee paid.

The Bench directed that whenever a matter is settled, the court must direct refund and issue a certificate. It also asked the Delhi government to take administrative steps to ensure time-bound refunds upon presentation of the certificate, and sent the order for circulation among all Principal District and Sessions Judges.