Parties settling disputes out of court are entitled to court fee refunds, promoting amicable resolutions and ensuring equal treatment under the law.

ORDER

1. This first appeal is filed assailing the judgment and decree dated 15.12.2020 passed by learned Special Judge, NDPS Act Cases, Hanumangarh passed in Original Civil Suit No.126/2016, whereby and where under, the civil suit for specific performance filed by respondent-plaintiff was decreed.

2. The first appeal was admitted for hearing on 23.03.2021 and during course of hearing, execution of the impugned decree was stayed.

3. The appellant has filed an application (No.1/21) purportedly under Section 151 CPC, alleging inter-alia that appellant and respondent have settled their dispute out of court, following the spirit of Lok Adalat.

4. It has been prayed that in view of above, the first appeal may be allowed to be withdrawn and the court fees of Rs.20,380/-paid by the appellant in first appeal may be refunded.

5. The counsel appearing for respondent does not opposes the application. However, since appeal was admitted for hearing and stay was granted but on seeing withdrawing of appeal at the stage of hearing on the point of refund of court fee, issue is being examined.

6. In order to seeking refund of court fees, after settlement of dispute out of court, a reliance has been placed on the judgment of the Hon'ble Supreme Court in the case of The High Court of Judicature of Madras Vs. M.C. Subramaniam & Ors. reported in 2021 (3) SCC 560.

7. The Hon'ble Supreme Court, in case of The High Court of Judicature of Madras (supra) considered the provisions of Section 69-A of the Court-Fees and Suit Valuation Act, 1955 in context to Section 89 CPC for refund of court fees to the party after settlement of dispute by their own, out of court, without adopting any mode of settlement as provided under Section 89 CPC. The provision of Section 69-A of the Court-Fees and Suit Valuation Act, 1955 reads as under:

' 69 A. Refund on settlement of disputes under Section 89 of Code of Civil Procedure.- Where the Court refers the parties to the suit to any of the modes of settlement of dispute referred to in Section 89 of the Code of Civil Procedure, 1908 (Central Act V of 1908), the fee paid shall be refunded upon such reference."

The Hon'ble Supreme Court observed as under:

"21. Thus, in our view, the High Court was correct in holding that Section 89 of the CPC and Section 69A of the 1955 Act be interpreted liberally. In view of this broad purposive construction, we affirm the High Court's conclusion, and hold that Section 89 of CPC shall cover, and the benefit of Section 69A of the 1955 Act shall also extend to, all methods of out of court dispute settlement between parties that the Court subsequently finds to have been legally arrived at. This would, thus, cover the present controversy, wherein a private settlement was arrived at, and a memo to withdraw the appeal was filed before the High Court. In such a case as well, the appellant, i.e., Respondent No. 1 herein would be entitled to refund of court fee."

8. In State of Rajasthan, The Rajasthan Court Fees and Suit Valuation Act, 1961 was amended and Section 65-B has been added for refund of fee, which is para-material to the provision of Section 69-A of the Madras Court-Fees & Suit Valuation Act, 1958.

9. Section 65-B of the Rajasthan Court-Fees and Suit Valuation Act, 1965 deals with the refund of fees, where the parties have settled their dispute under anyone of the mode given in Section 89 CPC.

The provision of Section 65(B) reads as under:

"65-B. Refund of Fee.- Where the Court refers the parties to a suit to any one of the mode of settlement of dispute referred to in Section 89 of the code of Civil Procedure, 1908 (Central Act No.5 of 1908) and the matter is settled by one of the modes provided under Section 89 of the Code of Civil Procedure, the plaintiff shall be entitled to a certificate from the Court authorising him to receive back from the Collector, the full amount of the fee paid in respect of such plaint."

10. Section 65-B of the Act of 1961 was taken into consideration by the co-ordinate Ben