High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE M. VENUGOPAL
N. Ramasamy Gounder & Another
Versus
State Bank of India
A.S. No.887, 889 of 1991 & C.M.P No.15206, 15208 of 1991
Decided On :Decided on : 29-09-2010
Court Fees - Settlement out of Court - Tamil Nadu Court Fees and Suit Valuation Act - Rule 24(3) of the Tamil Nadu Motor Vehicles Rules 1989 - Legal Services Authorities Act - Refund of Court Fees
Fact of the Case:
The appellant settled the matter out of court with the respondent bank and requested a refund of the court fees paid. The court dismissed the appeal as settled out of court and declined the request for a refund of court fees.
Finding of the Court:
The court found that there is no provision in the Tamil Nadu Court Fees and Suit Valuation Act to order a refund of court fees when the matter has been settled out of court. It also cited previous decisions that supported this finding.
Issues: The main issue was whether the court could order a refund of court fees when the matter has been settled out of court.
Ratio Decidendi: The court held that the Tamil Nadu Court Fees and Suit Valuation Act is a self-contained act and does not provide for a court to order a refund of court fees in cases of settlement out of court. It also referenced specific provisions in the act and previous court decisions to support its decision.
Final Decision: The court declined the request for a refund of court fees, stating that there is no provision in the act to order a refund in such cases and that the present case is not a fit one for ordering a refund of court fees.
1. The Learned counsel for the Appellant/Defendant on 27.09.2010 has made the following endorsement: "This Appeal has been settled between the parties. The Appellant has paid the amount as per the Compromise and the matter is settled between the Appellant and the Respondent Bank. Hence, the matter is settled out of Court, between the parties, and the Court fees may be refunded to the Appellant. This Appeal may dismissed as settled out of Court.
2. In view of the said endorsement made to the effect that the Appeal has been settled between the parties and that the Appellant has paid the amount as per compromise and the matter is settled between the parties, this Court dismisses the Appeal as settled out of Court.
3. At this juncture, the Learned counsel for the Appellant/Defendant cites the decision of this Court S.JAYALAKSHMI AND 5 OTHERS V. M/S.VASAVI TRANSPORT, KULITHALAI REP. BY ITS MANAGING DIRECTOR R.JAGAN MOHAN AND ANOTHER, 1994 (2) L.W.110 (DB), wherein it is laid down as follows: "as "the court fee paid is a very heavy amount and in view of the withdrawal of the appeal, it would be in the interests of justice to grant a refund. But, there is no provision in the Tamil Nadu Court Fees and Suits Valuation Act to enable the Court to give a direction for refund of Court fee. However, we direct the appellant to make an application to the Government ex gratia ad misericordia domini regis ("by favour" and "by the mercy of our Lord the King"). For this purpose, a certificate will be granted to the appellants by the Registry that the appeal memorandum was stamped with a court fee of Rs.19,372.50p and that the Court fee stamps had been defaced by the High Court Office in the usual course of routine. The Government will pass such orders as they like, after perusing the certificate, as it is wholly ex gratia ad misericordia domini regis. The Registry is directed to return the stamp papers attached to the memorandum of Appeal, so that the appellant may present them along with his application to the Government for refund of Court fee."
4. The contention of the Learned counsel for the Appellant/Defendant is that since the matter has been settled out of Court between the parties and because of the fact that the Appellant/Defendant has prayed for dismissal of the Appeal as settled out of Court the Court fees paid by the Appellant/Defendant may be ordered to be refunded to the Appellant.
5. It is useful to refer to Rule 24(3) of the Tamil Nadu Motor Vehicles Rules 1989, which runs as follows: "The Claims Tribunal may, in its discretion exempt any party from the payment of fees prescribed under Sub-Rule(1): Provided that where a claim of a party has been accepted by the Claims Tribunal, the party shall have to pay the prescribed fees, exemption in respect of which has been granted initially before a copy of the Judgment is obtained: Provided further that where the amount of Award is less than the amount of claim, the party shall be entitled to refund of the proportionate fee, namely the difference between the fee actually paid and the fee due if the claim had been made for the amount of award."
6. On going through the decision S.JAYALAKSHMI AND 5 OTHERS V. M/S.VASAVI TRANSPORT, KULITHALAI REP. BY ITS MANAGING DIRECTOR R.JAGAN MOHAN AND ANOTHER, 1994 (2) L.W.110 (DB), it is candidly clear that this Court has not issued any direction for refund of Court Fee or it has not laid down any dictum, except directing the Registry to return the stamp papers in the memorandum of Appeal to enable her to apply to Government exgratia ad misericordia domini regis ("by favour" and "by the mercy of out Lord the King") for refund.
7. In the decision PARVATHI V. PUNJAB NATIONAL BANK, 2005 (5) CTC 577, this Court has inter alia held that "there is no provision in the Tamil Nadu Court Fees and Suit Valuation Act, 1955 or in the Madras High Court Fees Rules regarding refund of Court Fees in an appeal settled out of Court is of no consequence because th
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