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1993 Supreme(Ker) 424

Judges : K.P.BALANARAYANA MARAR
State Bank of India - Appellant
Versus
Iqbal Zacharia - Respondent
Case No : C.R.P. No. 675 of 1992
Decided On : 11/24/1993
Advocates Appeared :
K.K. Chandran Filial For Petitioner T.H. Abdul Azeez For Respondents

The benefit of paying one-tenth of the court fee and not paying the balance fee under S.4A of the Court Fees Act does not extend to cases of admission of the claim by the defendant and a decree on such admission.

Headnote:

court fee - liability of plaintiff - S.4A of the Court Fees Act - 4A

Fact of the Case:

The plaintiff filed a suit and paid one-tenth of the court fee under S.4A of the Court Fees Act. The defendant admitted the claim, and the plaintiff was directed to pay the balance court fee. The plaintiff challenged this order in revision.

Finding of the Court:

The court found that the benefit of paying one-tenth of the court fee and not paying the balance fee under S.4A does not extend to cases of admission of the claim by the defendant and a decree on such admission. The court held that the plaintiff was liable to pay the balance court fee.

Issues: The main issue was whether the plaintiff is liable to pay the full court fee in a case of admission of the claim by the defendant, despite the provisions of S.4A of the Court Fees Act.

Ratio Decidendi: The court interpreted S.4A and held that the benefit of paying one-tenth of the court fee and not paying the balance fee does not apply to cases of admission of the claim by the defendant and a decree on such admission. The court also noted the anomaly in the process and suggested that the legislature should consider making suitable amendments to S.4A.

Final Decision: The revision was found to be devoid of merits and was dismissed without costs.

Judgment :-

The question that arises in this revision petition is whether plaintiff is liable to pay the full court fee in a case of admission of the claim by the defendant. The suit was filed since the introduction of S.4A in the Court Fees Act by which a plaintiff was permitted to present a plaint by paying one-tenth of the amount of court fee chargeable under the Acton the plaint claim. The defendant on appearance in pursuance to the summons filed written statement admitting the claim. Plaintiff was directed to pay the balance court fee. This order is under challenge in this revision.

2. Section 4A was introduced by the Amendment Act 6 of 1991. That Section reads:

"4A. Levy of fee at the time of institution of suit:-Notwithstanding anything contained in any other provisions of this Act, the amount of fee to be paid on plaint at the time of institution of suit shall be one-tenth of the amount of fee chargeable under this Act and the balance amount shall be paid within such period, not later than fifteen days from the date of framing of issues or where framing of issues is not necessary, within such period not exceeding fifteen days as may be specified by the court:

Provided that the court may for sufficient reasons to be recorded in writing extend the period up to thirty days.

Provided further that if the parties settle the dispute within the period specified or extended by the court for the payment of the balance amount, the plaintiff shall not be called upon to pay such balance."

This Section enables the plaintiff to pay one-tenth of court fee payable on the plaint at the time of institution of the suit and the balance nine-tenth within the time prescribed, i.e. not later than fifteen days from the date of framing of issues or where issues is not necessary within such period not exceeding fifteen days as may be specified by the court. Power to grant extension of time not exceeding up to thirty days is conferred on the court by the first proviso to the section. The second proviso stipulates that the balance court fee is not payable if the parties settled the dispute within the period specified or extended by the court. The interpretation of the second proviso arises in this civil revision petition.

3. Framing of issues arises only if a defendant appears and files his written statement in which case the suit can be compromised. Even before that the matter can be settled between the parties with or without entering into a compromise and presentation-of such a compromise is not contemplated in the second proviso whereas reporting of settlement by itself will be sufficient. In other words, the parties only need report to the court about the settlement of the dispute cither within fifteen days from the date of framing of the issues or within such period not exceeding fifteen days as may be specified by the court or where framing of issues is not necessary or within the extended period granted by the court. If there has been some settlement between the parties the suit could be withdrawn by the plaintiff as settled between the parties. In that case, the balance court fee representing nine-tenth of the court fee calculated on the plaint claim need not be paid by the plaintiff.

4. The second proviso to S.4A does not contemplate a situation where a decree is passed on the admission of the defendant. So long as the proviso envisages such a situation also, plaintiff cannot be relieved of his liability to pay the balance court fee. There is no indication in S.4A to suggest that the Legislature contemplated exoneration of plaintiff from paying the balance court fee in such a case. The phrase "if the parties settle the dispute within the period specified or extended by the court" does not include within its scope an admission by the defendant and a decree on such admission. No provision was brought to my notice by learned counsel for revision petitioner to persuade me to take a different view. Moreover there is indication in the Court Fees Act





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