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ORISSA HIGH COURT
GEOSERVE ENERGY TRANSPORT DMCC – Appellant
Versus
MV TELERI M (IMO 9648867) – Respondent
ORDER :
M.S.SAHOO, J.
I.A. No.19 of 2025
By order dated 09.05.2025 after the plaintiff and defendant agreed for out of Court settlement and the suit was allowed to be withdrawn. Regarding I.A. No.19 of 2025 filed by the plaintiff the following was directed:
“5. The I.A. has been filed for refund of the court fee.
The Registry shall place the matter before the Registrar (Judicial) to put up a note regarding prayer made by the plaintiff.”
2. Registrar (Judicial) in response has put a note which indicates the following:
“On going through the I.A. No.19 of 2025 filed by the plaintiff, it reveals that the same was filed for refund of the Court Fees on the ground that the matter was amicably settled between the parties. As the matter has already been settled between both the sides, if the Hon’ble Court feel it proper to refund the Court Fees as per Section 16 of the Court Fees Act, 1870 in light of the Judgement of the Hon’ble Apex Court decided in the case of High Court of Judicature at Madras represented by its Registrar General Vrs. MC Subhramanyam and others 2021 (3) SCC 560, then the plaintiff has to file a refund application before the undersigned along with the order of the Hon’ble Court
Refund of court fees is permitted under Section 16 of the Court Fees Act when disputes are settled outside of court, inclusive of all forms of settlements as interpreted by the Supreme Court.
Section 16 of the Court Fees Act, 1870 allows for the refund of court fees in specific circumstances, including when parties settle their dispute outside the Court.
Court fees should be refunded even when cases settle out of court, promoting private dispute resolution methods, which supports judicial efficiency.
The court affirmed the right to court fee refunds upon referral to arbitration, emphasizing that such a referral entitles plaintiffs to refunds irrespective of arbitration outcomes.
The benefit of court fee refund extends to all methods of out-of-court dispute settlement legally arrived at, as interpreted liberally by the Court.
Parties settling disputes out of court are entitled to court fee refunds, promoting amicable resolutions and ensuring equal treatment under the law.
The court recognized that out-of-court settlements enable parties to claim court fee refunds, treating them equitably with formal dispute resolution methods, thus promoting judicial efficiency.
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