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2025 Supreme(Ker) 3067

IN THE HIGH COURT OF KERALA AT ERNAKULAM
K. NATARAJAN, J.
M/s Tidewater Mri, Mri Scan And Research Centre - Appellant
Vs.
Lakeshore Hospital And Research Centre - Respondent 
O.P.(C) No.2538 of 2025
Decided On : 01-12-2025

Advocates:
Advocate Appeared:
For the Appellant : Shri.Rajiv Abraham George, Shri.Satish Mohan

The correct court fee for execution petitions is to be calculated according to the prescribed formula in the Kerala Court Fees and Suits Valuation Act, which ruled the excess court fee demanded was invalid.

Headnote:(A) Kerala Court Fees and Suits Valuation Act - Schedule II, Article 9(O) - Court fee calculation dispute - Petitioner filed for a refund of excess court fee paid in an execution petition, contesting the demand of Rs. 50,000/- by the Commercial Court - Court calculated fee based on the applicable provisions and determined it should be Rs. 3,056/- according to the formula provided under the Act. (Paras 2, 6, 8)

(B) Refund of excess payment - The court directed the Commercial Court to refund the excess amount of Rs. 46,944/- to the petitioner. (Para 8)

Facts of the case:
The petitioner obtained an arbitral award and filed an execution petition claiming Rs. 7,15,36,171.28, but the Trial Court erroneously demanded a maximum court fee.

Findings of Court:
The petitioner’s calculation of the court fee was accurate, and the demand for Rs. 50,000/- was incorrect.

Issues: The main issues were whether the correct court fee was Rs. 50,000/- or Rs. 3,056/- and whether the order required interference.

Ratio Decidendi: The court affirmed that the calculations made by the petitioner adhered to the prescribed formula in the Kerala Court Fees and Suits Valuation Act, demonstrating that the Demand from the Commercial Court was erroneous.

Result: The original petition is allowed, and the order is set aside.

Judgement Key Points

The court fee to be paid in an execution petition for enforcement of an arbitral award is calculated based on the prescribed formula in Schedule II of Article 9(O) of the Kerala Court Fees and Suits Valuation Act. Specifically, for the value of the subject matter, the applicable rates are:

  • 1% of the value for amounts up to Rs. 1,00,000,
  • 0.75% for the amount exceeding Rs. 1,00,000 up to Rs. 10,00,000,
  • 0.50% for amounts exceeding Rs. 10,00,000 up to Rs. 1,00,00,000,
  • 0.25% for amounts exceeding Rs. 1,00,00,000, with a maximum cap of Rs. 50,000.

In the specific case discussed, the court determined that the correct court fee for the enforcement of the arbitral award amounting to Rs. 7,15,36,171.28 is approximately Rs. 3,056 (!) (!) (!) .

Therefore, the appropriate court fee in such cases is calculated according to these rates, and the maximum fee payable is Rs. 50,000, but in this instance, the correct fee was found to be significantly lower, at Rs. 3,056.


Table of Content
1. petition challenging court fee calculation. (Para 1 , 2)
2. points for consideration in the case. (Para 3 , 4)
3. court fee calculation principles applied. (Para 5 , 6)
4. detailed breakdown of correct court fee. (Para 7)

JUDGMENT :

K. NATARAJAN, J.

This original petition is filed by the petitioner under Article 227 of the Constitution of India, challenging the fixation of court fee by the Principal Sub-Court, Ernakulam, in E.P. (Com) No.20 of 2025, as per Ext.P1 dated 20.09.2025, and seeking a refund of the excess court fee paid by the petitioner.

2. The case of the petitioner is that the petitioner obtained an arbitral award and filed an execution petition before the Commercial Court, Ernakulam, in E.P. (Com) No.20 of 2025. The petitioner's counsel contended that he has paid the court fee of Rs. 3,055.90 (Rs. 3056) as per the calculation, and as per the provisions of Schedule II of Article 9(O) of the Kerala Court Fees and Suits Valuation Act, as the amount in the execution case was Rs. 7,15,36,171.28. The petitioner has deposited Rs. 3056 as court fee, but the Trial Court insisted on paying the maximum court fee of Rs. 50,000/-, which is not correct. On the protest, the petitioner had deposited the entire court fee of Rs. 50,000/-, an excess of Rs. 46,944. Therefore, it is contended that the calculation made by the Office of the Commercial Court is not correct. Hence, prayed for setting aside the same and prayed for a refund of the excess court fee.

3. Heard the arguments of the learned counsel for the petitioner, counsel for the respondent, and perused the records.

4. The points that arise for consideration are:

(i) Whether the court fee payable by the petitioner is as per Schedule II of Article 9 (O) of the Act, is Rs. 50,000/- or Rs. 3,056/-, as contended by the petitioner?

(ii) Whether the order under challenge calls for any interference?

5. On perusal of the records, it is not in dispute that the petitioner has obtained the arbitral award and filed an execution petition by claiming Rs. 7,15,36,171.28, and he has calculated the court fee as per Schedule II of Article 9(O) as Rs. 3,056/-, which is calculated as under:

0) Application for enforcing awards, including foreign awards-

(i) if the value of the subject matter of the award does not exceed Rs. 1,00,000/-;One percentum on the value of the subject matter

(ii) if the value exceeds Rs. 1,00,000/-, for every one hundred rupees or part thereof in excess of one lakh rupees upto 10,00,000/-;

0.75 percentum on the value of the subject matter

(iii) if the value exceeds Rs. 10,00,000/-, for every one hundred rupees or part thereof in excess of ten lakh rupees upto Rs. 1,00,00,000/-;

0.50 percentum on the value of the subject matter

(iv) if the value exceeds Rs. 1,00,00,000/-, for every one hundred rupees or part thereof in excess of Rs. 1,00,00,000/-:

0.25 percentum on the value of the subject matter (subject to a maximum of fifty thousand rupees)

6. Learned counsel for the petitioner contended that as per the Sub para 1 to sub section (o), up to Rs. 1,00,000/-; 1% of the value of the subject matter is payable for every per centum, i.e., for every 100/- rupees, Rs. 1.00 has to be paid, and after Rs. 1,00,000/- and up to Rs. 10,00,000/-, 0.75 per centum; ( 0.75 paise) has to be paid. And above Rs. 10 lakh - up to Rs. 1 Crore, he has to pay 0.50 per centum, and the remaining amount (above one crore) he has to pay 0.25 per centum. He has calculated as per the above provision, which comes to Rs. 3,055.90 (rounded off to Rs. 3056). But the trial court insisted on Rs. 50,000/-, which is not correct, and the excess court fee has to be refunded. In view of the submission, the calculations are as under:

7. On perusal of the calculation made, the court fee payable for up to Rs. 1,00,000/- consists of 1000 hundreds, i.e., (1000x100x1), i.e., every 100 rupees, 1 rupee is calculated; it becomes Rs. 1,000/-. Exceeding Rs. 1,00,000/- up to Rs. 10,00,000/-, i.e., for Rs. 9,00,000/-which comes

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