Court fees can be refunded in cases of out-of-court settlements as per Section 89 of the Code of Civil Procedure.

Order

This Misc. Appeal has been filed to challenge the order dated 30 th May 2023 passed in Civil Original Suit No.93/2021.

2. Mr. Rajesh Shah, the learned counsel for the appellants states that during pendency of the present Misc. Appeal, the parties amicably settled their dispute.

3. In the aforesaid circumstance, I.A. No.01/2024 has been filed in D.B. Civil Misc. Appeal No.1267/2023 stating as under :-

“ 2. That, the Petitioner and the Respondent have settled the dispute out of the court in the spirit of Lok Adalat vide Mutual Compromise Dated 19/02/2024 whereby it was agreed to withdraw all the cases and even the execution proceedings before the Hon’ble Executing court.

3. That, in the light of the compromise arrived at between both the parties the amount as settled in the compromise has already been received by the Plaintiff-Respondent and the execution petition pending before the Commercial Court No.2, Jodhpur has been withdrawn by the plaintiff and the Hon’ble Execution Court has directed to refund the court fees vide order dated 22/02/2024. Therefore, in the light of compromise arrived at between both the parties the Misc. Appeal may kindly be disposed of in the light of compromise and as the out of court settlement has been arrived between both the parties, the court fees paid before the filing of the present misc. appeal may kindly be directed to be refunded back to the Applicant. ”

4. Mr. Rajesh Shah, the learned counsel for the appellants has tendered a photocopy of the order dated 22 nd February 2024 to apprise this Court that the garnishee order against the judgment dated 30 th May 2023 has since been recalled and their bank accounts have been defreezed.

5. Photocopy of the order dated 22 nd February 2024 is taken on record.

6. In view of the settlement between the parties, a prayer for refund of the Court fee deposited by the appellants has been made in the following terms :-

“ 4. That, in the light of the judgement passed by the Hon’ble the Punjab and Haryana High Court in the case of Banwari Lal Versus Mool Chand and Others has held that section 89 CPC extends to compromises entered outside court also and allowed refund of court fees. In the present case also the Applicant is entitled to refund of the court fees on account of the out of the court settlement in the spirit of Lok Adalat. ”

7. In view thereof, a direction is issued to the office to refund the Court fee paid by the appellants for maintaining the present Civil Misc. Appeal particularly in the light of application under section 16 of the Court Fees Act, 1870 and section 89 of the Code of Criminal Procedure read with section 65-B of Rajasthan Court Fees & Valuation of Suit Act.

8. D.B. Civil Misc. Appeal No.1267 of 2023 is disposed of.