Court holds that parties who amicably settle a suit, counter-claim or appeal are entitled to a certificate for full refund of court fee, without filing any separate application.
The Delhi High Court has clarified that under the amended Section 16 of the Court Fees Act, 1870, parties who settle a suit or appeal amicably are entitled to a full refund of court fee as a substantive statutory right.
A Division Bench of Justice Anil Kshetarpal and Justice Bharat Parashar was hearing an application in a commercial appeal when it took note of the Delhi Government’s Notification dated 06.03.2026, which substituted the earlier provision dealing with refund of court fee. The amended Section 16 provides that where parties to a suit or appeal settle their dispute amicably at any stage, with or without the court’s intervention and with or without using the settlement mechanisms under Section 89 of the Code of Civil Procedure, 1908, the plaintiff or counter-claimant is entitled to a certificate from the court authorising refund of the full court fee paid.
Reading the provision plainly, the Bench held that once a matter is disposed of as settled or compromised, the right to refund follows automatically. The court emphasized that no separate application or petition is required for claiming such refund after the case has been disposed of on settlement terms and the certificate has been issued.
The High Court further directed that whenever a matter is settled, the court concerned should, while disposing of it, expressly direct refund of the court fee and issue the certificate needed for recovery of the full amount. This, the Bench said, would avoid unnecessary procedural hurdles and spare litigants from making additional requests for refund.
In a significant administrative direction, the court asked the Government of NCT of Delhi to take necessary steps to ensure that refund of court fee is processed in a time-bound manner once the certificate is presented. The Bench also requested the Standing Counsel (Civil) for GNCTD to ensure that the concerned authorities implement the provision properly and avoid avoidable litigation.
The court directed that a copy of the order be sent to the Registrar General of the Delhi High Court for circulation to all Principal District and Sessions Judges, so that the practice is followed uniformly across courts in Delhi.
Bottom Line :
Court Fees Act, 1870 as amended by Notification dated 06.03.2026 in Delhi - On amicable settlement of suit or appeal, with or without Court intervention and with or without recourse to Section 89 CPC, full refund of court fee is a substantive statutory entitlement - No separate application is required once matter is disposed of as settled or compromised - Court should itself direct refund and issue certificate for refund.
Statutory provision(s): Court Fees Act, 1870 (Section 16 as amended by Notification dated 06.03.2026), Code of Civil Procedure, 1908 (Section 89)
Hitech Enterprises v. Modern Construction Company Delhi, (Delhi)(DB) : Law Finder Doc id # 2985241
