Rajasthan High Court Issues Notice On Challenge To Advocates Welfare Fund Amendment Enhancing Vakalatnama Stamp, Membership Fees

Rajasthan High Court issued notice on a petition challenging the validity of Rajasthan Advocates Welfare Fund (Amendment) Act, 2020 (“2020 Act”), that enhanced the stamp fee on Vakalatnama by 4 times, along with enhancement in the membership fee for the Rajasthan Advocates Welfare fund established under the Rajasthan Advocates Welfare Fund Act, 1987 (“Act”).

The petition submitted that the objective of the Act was to include as many advocates as possible under its umbrella. However, by increasing the membership fee, the very purpose of the Act was rendered nugatory since the membership had become unaffordable for majority of advocates.

Further, it was put forth that the exorbitant increase in price of welfare stamps by 4 times to Rs. 100 with the provision of enhancement by Rs. 10 every year, was manifestly arbitrary. It was submitted that the legislature's intention was not to cast financial burden on the advocates.

It was further stated that despite there being an increase in the welfare stamp by 4 times, the amount to be received by an advocate on completion of 40 years of practice was not increased even by 2 times, which reflected that with the 2020 Act, the welfare fund would “swell” without corresponding benefit to the advocates.

The petition notes that completing 50 years of practice became a reality for very little number of advocates. Hence, reserving very high amounts in welfare fund for advocates attaining 50 years of practice, as compared to for those completing 40 years was discriminatory and violative of Article 14 of the Constitution.

Hence, the 2020 Act was argued to be putting the members of the legal fraternity in a disadvantageous position, and was manifestly arbitrary, patently illegal and invalid.

The Court had issued notices to the State.

Title: Satish Kumar Khandal v State of Rajasthan and Another