Law changed, litigants will get court fee back even in private deals in Delhi

The proposal for the amendment was tabled by PWD Minister Parvesh Sahib Singh in the House on the second day of the ongoing Winter Session.

As per the Court Fees Act, 1870, and Section 89 of the Civil Procedure Code (CPC), whenever a person moves a court, he or she is required to deposit court fees.

“It is a major relief to the people because earlier, they used to get full reimbursement only when they settled the matter inside the court and 50 per cent for settling the matter outside court mutually. But now, with this amendment, people will get a full refund of court fees whether they settle the case through the court or outside,” said Singh.

In 2022, a public interest litigation, titled Praveen Kumar Aggarwal versus Government of NCT of Delhi, was filed before the Delhi High Court. The petitioner challenged Section 16A of the CPC — under which the refund is limited to 50 per cent — on the ground that it is discriminatory, as it creates an unreasonable distinction between litigants who settle disputes through court-referred mechanisms and those who settle disputes amicably through other lawful means.

“The Law Department, upon examination, was of the prima facie view that the existing provision requires amendment in order to remove discrimination and to ensure equal treatment to all litigants who resolve their disputes by settlement after reference by the court. This position was placed before the High Court, and the PIL was disposed of after noting the intention of the Government to take appropriate legislative action in accordance with the Transaction of Business Rules,” the proposal read.

The draft Bill was prepared in order to remove the existing distinction and ensure uniform refund of court fees.

“The proposed amendment seeks to consolidate the refund regime by omitting Section 16A and correspondingly amending Section 16 to provide for full refund of court fees irrespective of the mode of settlement adopted by the parties,” it said.

Officials said that the draft Bill received approval from the Centre and the recommendation of the Lieutenant Governor, as required under law, before being passed in the Assembly.

Court fees are paid for instituting any litigation and are charged for using the court machinery, including its staff and resources. Such fees, payable by the petitioner or plaintiff, vary as per the type and value of the litigation or dispute.

In Delhi, the Court Fees Act lists out the fee schedule. For example, petitions filed under Article 226 of the Constitution at the Delhi High Court have a court fee of Rs 100, and petitions seeking execution or enforcement of any judgment or decree by any court before the Delhi High Court can require a court fee of Rs 1,000. Election petitions at the Delhi High Court have a court fee of Rs 5,000, as do suits or petitions under Intellectual Property Rights. A petition may not be listed or heard if the court fee is not paid.