[S. 69A Kerala Court Fees & Suits Valuation Act] High Court Allows Refund Of Legal Benefit Fee, Says Its Character Was Similar To Already Refunded Court-Fees

Rubayya Tasneem

29 Jan 2024 7:03 AM GMT

  • [S. 69A Kerala Court Fees & Suits Valuation Act] High Court Allows Refund Of Legal Benefit Fee, Says Its Character Was Similar To Already Refunded Court-Fees

    The Kerala High Court has allowed the refund of additional fees paid towards the Legal Aid Benefit fund under Section 76 of the Kerala Court Fees and Suits Valuation Act, 1949. It said: Section 69A covers the additional court fee levied under Section 76(1) of the Act. If such refund is to be refused for the purpose of constitution of the fund, then, every other court fee levied also has...

    The Kerala High Court has allowed the refund of additional fees paid towards the Legal Aid Benefit fund under Section 76 of the Kerala Court Fees and Suits Valuation Act, 1949.         

    It said: Section 69A covers the additional court fee levied under Section 76(1) of the ActIf such refund is to be refused for the purpose of constitution of the fund, then, every other court fee levied also has a purpose, wherefore refund becomes impossible in respect of the same as well, which logic defies the mandate of Section 69A and renders it otiose. The nature and character of the additional fee levied, though for constituting the legal benefit fund, is nothing, but that of a court-fee.

    A single judge bench of Justice C Jayachandran heard the matter.

    The question before the court pertained to the refund of the court fee collected towards the legal benefit fund. An order by the Principal Munsiff's Court declined the petitioner's application for a refund of the legal benefit fund. This claim was made on the premise that the settlement was reached between the parties during mediation.

    The petitioner argued that as the matter was settled during mediation, they are entitled to a refund as per Section 69A of the Kerala Court Fees and Suits Valuation Act, 1949. Section 69A speaks of the refund of “the whole court-fee paid” upon settlement by recourse to Section 89 of the Code of Civil Procedure.

    While the court fee was refunded, the amount paid towards the legal benefit fund was not refunded based on the respondent's argument that it is not a court fee but merely levied as an additional court fee as a mode of collecting the fund for legal aid. The respondent relied on the provision under Section 76 which enumerates the legal benefit fund of the Act to argue that the legal benefit fund is an 'additional court fee' and as such, governed by Section 69A of the Act.

    Upon hearing the plea, the court pointed out that sub-section (1) of Section 76 speaks of 'additional court fee' without mentioning 'legal benefit fund'.

    It observed that sub-section (2) referred to the legal benefit fund, to which the additional court fee collected under sub-section (1) had to be credited.

    Thus the court concluded that merely because the amount collected under sub-section (1) is of another character does not mean that it will not cease to be a court fee, the whole of which is refundable under Section 69A.

    The court went on to say that 

    As such, the petition was allowed with the court stating that “Section 69A covers the additional court fee levied under Section 76(1) of the Act”. The bench directed the Munsiff Court to refund the additional court fee collected under Section 76(1).

    Counsel for Petitoners: Advocates NM Madhu, CS Rajani

    Case Title: Shree Dhanwantari Chits India Pvt Ltd. v. Banu & ors.

    Case Number: OP (C) No. 2688 of 2023

    Citation: 2024 LiveLaw (Ker) 73

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