The Delhi High Court directed the Delhi government to frame a policy within four months for speedy refund of court fees after dispute settlements, observing that the absence of a codified mechanism causes unnecessary hardship and procedural delays for litigants seeking refunds under the Court Fees Act.
The Delhi High Court on Wednesday directed the Government of Delhi to formulate a comprehensive policy or guidelines within four months to ensure expeditious refund of court fees in cases where disputes between litigating parties are settled.
A Division Bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia observed that litigants should not be compelled to undergo prolonged procedural delays in obtaining refund of court fees after settlement of disputes. The Court noted that the absence of a streamlined and codified mechanism often creates unnecessary hardship for parties seeking refund under Sections 16 and 16A of the Court Fees Act, 1870.
The Bench observed,
“Once the lawsuit brought to the court is settled between the parties, there is no reason why such a litigant should face difficulties and a long time for the return of the court fee,”
The High Court directed the Delhi government to frame the policy in consultation with the High Court administration so that a uniform and efficient system could be established for processing such refunds.
The Petition:
The directions came while the Bench was hearing a Public Interest Litigation (PIL) filed by advocate Deepak Singh Thakur along with another litigant. The petition highlighted the significant delays allegedly faced by litigants in obtaining refund of court fees even after settlement or resolution of disputes.
According to the petitioners, the existing administrative procedure for obtaining refunds was cumbersome, time-consuming and lacked a proper standardised framework.
During the hearing, advocate Deepak Singh Thakur informed the Court that in Delhi, litigants often have to wait for nearly two years to receive refunds of court fees.
ALSO READ: Bar Council of Kerala Declares Protest Against Proposed Hike in Court fees
The counsel submitted before the Court,
“The procedure is very lengthy. Once we apply for it, we get it in 1.5 to 2 years,”
Court’s Observation:
After considering the submissions and examining the issue, the Division Bench observed that once disputes are amicably settled, there is no justification for litigants being subjected to prolonged administrative hurdles merely to recover the court fees already deposited.
The Court noted that a clearly defined and codified mechanism would significantly reduce procedural complications and facilitate quicker processing of refund claims. The Bench also indicated that such a policy would help improve judicial administration by reducing unnecessary procedural bottlenecks affecting litigants.
Consequently, the Court directed the Delhi government to formulate an appropriate policy within four months in consultation with the Delhi High Court. Following the directions, the Bench disposed of the PIL.
The ruling is expected to benefit litigants involved in settlements, mediation proceedings and compromise decrees by ensuring faster refund of court fees and reducing delays in post-settlement procedural formalities.
FOLLOW US FOR MORE LEGAL UPDATES ON YOUTUBE