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HEMANT CHANDANGOUDAR
Narayana Murthy H M, S/o. Madappa H. T. – Appellant
Versus
Registrar Debt Recovery Tribunal, Bangalore – Respondent
ORDER :
(Hemant Chandangoudar, J.)
The petitioners before this Court are seeking a writ in the nature of Certiorari to quash and set aside the order dated 08.08.2022 passed by the Debt Recovery Tribunal II, Bengaluru, dismissing the I.A. No. 2280/2022, in S.A. No. 277/2022 filed by the petitioners herein, seeking a refund of the court fees as deposited, on account of disposal of the main petition as infructuous. The petitioners seek an order granting a refund of INR 79,225/- (Rupees Seventy-nine Thousand and Two Hundred and Twenty-five Only), and in the alternative, seek to quash the order impugned herein, and remand the matter back to file of the DRT II, Bengaluru, for a time-bound reconsideration of the same.
2. The petitioner No.1 is a Class -1 Contractor (PWD) and had availed loan of an amount of INR 2,50,00,000/- (Rupees Two Crore and Fifty Lacs Only) vide sanction letter dated 30.03.2016, against the mortgage of several properties. The petitioner No.2 (wife of the petitioner No.1) had guaranteed the same as a surety. Thereafter, vide letter dated 23.09.2019 and Amendment Agreement to Rephase Payment dated 30.09.2019, the respondent No. 2 sanctioned another loan of INR 30,00,000/
The court established that litigants have an inherent right to a refund of court fees when their application is disposed of as infructuous, despite the absence of an explicit statutory provision for ....
Court fees must be refunded when a suit is dismissed due to lack of jurisdiction, establishing a right to full refund in such cases.
Court fees should be refunded even when cases settle out of court, promoting private dispute resolution methods, which supports judicial efficiency.
Section 70 of the Act comes into play only when there is no adjudicatory process.
The court lacks power to refund court fees if withdrawn appeals do not meet statutory refund conditions under applicable acts.
The court affirmed the right to court fee refunds upon referral to arbitration, emphasizing that such a referral entitles plaintiffs to refunds irrespective of arbitration outcomes.
Court fees submitted are not refundable if used but can be returned for re-filing in the appropriate court.
Alternate Dispute Resolution (ADR) – Refund of court fees – Section 89 CPC nowhere correlates settlement of disputes by alternate mechanisms to amount of money that may be saved by parties in so far ....
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