IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Rajani Dubey, Sanjay Kumar Jaiswal, JJ.
Arvind Agrawal S/o Late Shri Radheshyam - Appellant
Versus
The Oriental Insurance Co. Ltd., Through Branch Manager - Respondent
FA No. 161 of 2022
Decided On : 05-08-2024
(A) Code of Civil Procedure, 1908 – Section 89 – Refund of Court fees – Amicable settlement of dispute between parties leading to withdrawal of appeal – Court emphasizes the importance of facilitating private settlements to alleviate the burden on the judicial system – The principles of statutory interpretation favor a purposive approach to ensure justice. (Paras 2, 4, 6, 7)
(B) Statutory Interpretation – Courts may creatively interpret legislation to achieve the true purpose of the enactment, avoiding unjust outcomes resulting from a narrow interpretation. (Paras 14, 15, 16)
Facts of the case: The appellant withdrew the appeal following an amicable settlement with the respondent and sought a refund of court fees. The respondent did not dispute this factual position.
Findings of Court: The appellant is entitled to a refund of court fees based on the amicable settlement and the principles established in prior judgments.
Issues: The main issue was whether the appellant could receive a refund of court fees after withdrawing the appeal due to a private settlement.
Ratio Decidendi: The court ruled that a purposive interpretation of Section 89 of the CPC and Section 69-A of the 1955 Act is necessary to ensure that parties who settle disputes privately are not unjustly deprived of benefits intended to facilitate settlements.
Result: Appeal dismissed as withdrawn, with a direction for refund of court fees.
JUDGMENT :
Rajani Dubey, J.
1.Heard on I.A. No. 02/2024, application for withdrawal of the appeal and also prayer for refunding of the Court fees.
2.Learned counsel for the appellant while pressing the application for withdrawal of this appeal submits that the appeal is being withdrawn pursuant to an amicable settlement of dispute arrived at between the appellant and the respondent. Appellant abandoned his claim (claimed in FA No. 161/2022) against the respondent and he only seeks withdrawal of this appeal along with refund of Court fees affixed on memo of first appeal. To buttress her contention, reliance has been placed on the judgment of Hon’ble Supreme Court in the matter of High Court of Judicature at Madras Vs. M.C. Subramaniam and others reported in (2021) 3 SCC 560.
3.Learned counsel for the respondent does not dispute the factual position with regard to amicable settlement of dispute between the parties and that being the operative reason for withdrawal of the appeal.
4.In the matter of High Court of Judicature at Madras Vs. M.C. Subramaniam and others reported in (2021) 3 SCC 560 held in paras 13, 14, 15, 16 & 17 as under:-
14. Before expounding further on our interpretation of the aforesaid provisions, regard must be had to the following postulation of this Court’s interpretive role in Directorate of Enforcement v. Deepak Mahajan:(1994) 3 SCC 440 –
“24…Though the function of the Courts is only to expound the law and not to legislate, nonetheless the legislature cannot be asked to sit to resolve the difficulties in the implementation of its intention and the spirit of the law. In such circumstances, it is the duty of the court to mould or creatively interpret the legislation by liberally interpreting the statute.
25. In Maxwell on Interpretation of Statutes, Tenth Edn. at p. 229, the following passage is found:
‘Where the language of a statute, in its ordinary meaning and grammatical construction, leads to a manifest contradiction of the apparent purpose of the enactment, or to some inconvenience or absurdity, hardship or injustice, presumably not intended, a construction may be put upon it which modifies the meaning of the words, and even the structure of the sentence. … Where the main object and intention of a statute are clear, it must not be reduced to a nullity by the draftsman's unskilfulness or ignorance of the law, except in a case of necessity, or the absolute intractability of the language used.” (emphasis supplied)
15. Therefore, it is well settled that the Courts may, in order to avoid any difficulty or injustice resulting from inadvertent ambiguity in the language of a statute, mould the interpretation of the same so as to achieve the true purpose of the enactment. This may include expanding the scope of the relevant provisions to cover situations which are not strictly encapsulated in the language used therei
Anurag Mittal v. Shaily Mishra Mittal
Shailesh Dhairyawan v. Mohan Balkrishna Lulla
Directorate of Enforcement v. Deepak Mahajan:(1994) 3 SCC 440
High Court of Judicature at Madras Vs. M.C. Subramaniam and others
The court emphasized a purposive interpretation of statutory provisions to ensure equitable treatment for parties settling disputes privately, allowing for court fee refunds.
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....
Court fees should be refunded even when cases settle out of court, promoting private dispute resolution methods, which supports judicial efficiency.
The court recognized that out-of-court settlements enable parties to claim court fee refunds, treating them equitably with formal dispute resolution methods, thus promoting judicial efficiency.
Parties settling disputes out of court are entitled to court fee refunds, promoting amicable resolutions and ensuring equal treatment under the law.
Court establishes the entitlement for court fee refund under Section 89 of CPC for out-of-court settlements.
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.
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....
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