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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M.Nagaprasanna
Seetharam C.N., S/O Sri C.K.Narasimha Iyengar – Appellant
Versus
Skytop Builders Private Limited – Respondent
ORDER :
M. Nagaprasanna, J.
The petitioners are before this Court seeking to set aside the order dated 06-06-2025 passed by the concerned Court in review petitions filed seeking to modify the order dated 05-09- 2024 passed on the I.A.No.1/2024 in the original suit seeking to refer the dispute to arbitration.
2. The petitioners, in all these cases, are plaintiffs. They institute 4 different original suits. During the subsistence of the said suits, in terms of the agreement, which contained an arbitration clause, defendant No.1 files an application before the concerned Court to refer the matter for arbitration under Section 8 of the Arbitration and Conciliation Act, 1996 (‘Act’ for short). The matter is referred to, in terms of an order dated 05-09-2024. The order reads as follows:
“…. …. ….
27. Point No.2: For the foregoing reasons, I proceed to pass the following:
ORDER
I.A. No. 1/2024 filed by the Defendant No.1 U/Sec. 8 of the Arbitration and Conciliation Act, 1996 , is hereby Allowed.
In the consequences, the Plaintiff is directed to approach the appropriate authority to get referred his dispute to the Arbitrator under the Arbitration and Conciliation Act, 1996 .
Under such circumstances
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 should be refunded even when cases settle out of court, promoting private dispute resolution methods, which supports judicial efficiency.
Point of Law : Return of Court Fee – Settlement of dispute under S. 89 of Act – Held, not sufficient for return of Court Fee.
Refund of court fees is permitted under Section 16 of the Court Fees Act when disputes are settled outside of court, inclusive of all forms of settlements as interpreted by the Supreme Court.
Section 16 of the Court Fees Act, 1870 allows for the refund of court fees in specific circumstances, including when parties settle their dispute outside the Court.
The judgment establishes the principle that Section 89 of CPC and Section 16 of Court Fees Act should be interpreted liberally to encourage out-of-court settlements and provide incentives for parties....
Parties settling disputes out of court are entitled to court fee refunds, promoting amicable resolutions and ensuring equal treatment under the law.
The broad purposive construction of Section 89 of the Code of Civil Procedure and Section 69-A of the 1955 Act to cover all methods of out-of-court dispute settlement between parties, entitling the p....
Section 89 of the CPC and Section 69-A of the 1955 Act should be interpreted liberally to cover all methods of out-of-court dispute settlement between parties, and the benefit of Section 69-A shall e....
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