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IN THE HIGH COURT OF DELHI AT NEW DELHI
GITA MITTAL, C.HARI SHANKAR, JJ.
M/S Northern Coalfields Ltd. – Appellant
Versus
M/S Heavy Engineering Corpn. Ltd. – Respondent
FAO(OS) 158 of 2017
Decided On : 18-04-2018
Court Fee Refund - Public Sector Undertakings Litigation - Court Fees Act, 1870, Section 16 - The court discussed the litigation arising from a contract between two Public Sector Undertakings, the reference of disputes to arbitration, and the entitlement to refund of court fees under Section 16 of the Court Fees Act, 1870. The court emphasized the need for effective adjudication and the wastage of public money in prolonged litigation.
Fact of the Case:
The appellant sought a refund of court fee of Rs.65,07,000 affixed on the plaint in CS(OS) No.2030/2001 after the suit was withdrawn. The court noted the history of the litigation, the reference of disputes to arbitration, and the prolonged judicial proceedings.
Finding of the Court:
The court found that the appellant was entitled to the refund of court fees under Section 16 of the Court Fees Act, 1870, but emphasized the need for the appellant to compensate the system for the judicial time expended on the suit.
Issues: The issues involved the entitlement to refund of court fees under Section 16 of the Court Fees Act, 1870 and the compensation for the judicial time expended on the suit.
Ratio Decidendi: The court held that the appellant was entitled to the refund of court fees under Section 16 of the Court Fees Act, 1870, but directed the appellant to deposit an amount of Rs.5 lacs as costs to compensate for the judicial time expended on the suit.
Final Decision: The court set aside the order dated 23rd January, 2017 in CS(OS) 2030/2001, directed the refund of court fees to the appellant, and ordered the appellant to deposit an amount of Rs.5 lacs as costs.
GITA MITTAL, J.
1. By way of the present appeal, the appellant assails the order dated 23rd January, 2017 passed on I.A. No.903/2017 praying for refund of court fee of Rs.65,07,000/- which was affixed on the plaint in CS(OS) No.2030/2001.
2. Inasmuch as we have recorded the entire factual narration leading to the filing of the present appeal in our order dated 19th May, 2017 for expediency we extract the said order hereunder:-
“FAO(OS) 158/2017
1. The present appeal assails the order dated 23rd January, 2017 passed in CS(OS)No.2030/2001 whereby the ld. Single Judge has dismissed the appellant/plaintiff’s application (I.A.No.903/2017) praying for refund of court fee of Rs.65,07,000/-.
2. This appeal relates to the litigation which arose out of a contract executed in 1984 between two Public Sector Undertakings. It appears that some disputes having arisen, the respondent M/s Heavy Engineering Corporation Limited took the appellant Northern Coalfields Limited to arbitration, resulting in passing of the award to the tune of Rs.17 crores in favour of the respondent.
3. Relating to the same contract of 1984, in the year 2000, the appellant herein initiated CS(OS)No.1709/2000 seeking declaration that the respondent was acting fraudulently and challenging the aforesaid award.
4. The proceedings in this case went up to the Supreme Court by way of Civil Appeal No.6296/2016 titled as M/s Northern Coalfields Limited vs. Heavy Engineering Corporation Limited and Another which came to be disposed of by the order dated 13th July, 2016. In para 28 of the above mentioned judgment, the Supreme Court referred the disputes which was the subject matter of CS(OS)No.1709/2000 pending between the parties to sole Arbitrator for adjudication of all claims and counter claims which the parties may choose to file before him. It was further directed that the CS(OS)No.1709/2000 shall stand disposed of in view of the order dated 13th July, 2016 passed by the Supreme Court in Civil Appeal No.6296/2016.
5. Apart from CS(OS)No.1709/2000, the appellant herein had initiated the second suit being CS(OS)No.2030/2001 for recovery of amounts against the respondent.
6. It is to be noted that the appellant filed an I.A.No.1/2016 in Civil Appeal No.6296/2016 before the Supreme Court of India seeking reference of the claim of the appellant which was subject matter of CS(OS)No.2030/2001to the same Arbitrator in terms of the Supreme Court order dated 13th July, 2016.
7. This application (I.A.No.1/26) was disposed of by the Supreme Court vide its order dated 9th November, 2016 wherein the court has directed as follow:
“We accordingly allow this application (I.A.No.1 of 2016) for Directions and permit the appellant-company to withdraw Suit No.2030 of 2001 pending before the High Court of Delhi with liberty to include the claim made in the suit in the counter claim which the appellant–company may make before the learned Arbitrator. The High Court may, when approached,
Pass a formal order for disposal of Suit No.2030 of 2001. We make it clear that the appellant–plaintiff shall also be free to seek appropriate directions from the High Court for refund of the court fee in accordance with law. The interlocutory application is in the above terms disposed off.”
(Emphasis supplied)
8. In view of the above, on the 19th December, 2016, the parties appeared before the ld. Single Judge when, on the request of the appellant herein, CS(OS)No.2030/2001 was dismissed as withdrawn “with no order as to costs”
No prayer of any other kind was made by the appellant/plaintiff herein before the ld. Single Judge on 19th December, 2016.
9. Thereafter on 17th January, 2017, the appellant herein filed I.A.No.903/2017 for refund of full court fees. This application came to be rejected by the ld. Single Judge by the order dated 23rd January, 2017 inter alia observing that, on 19th December, 2016, a simpl
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