In general, the court fee is not refunded when a suit is withdrawn, subject to the exceptions mentioned below.
In the case of Devender Pratap Singh v. s Land Mark Infracon Pvt. Ltd. [IA No.5920/06 in CS(OS) No.1356/05], decided on 12 February 2008, Delhi high court had held as under (see here):
“There is no provision in law for refund of Court fee where plaintiff seeks to withdraw the suit. It is settled law that a person who files the suit, must be careful and vigil. The suit must be filed only if there is a cause of action and a right has accrued in favour of the plaintiff. If the suit is filed without cause of action and without there being any right in the plaintiff, the suit is liable to be dismissed. The plaintiff in such a case is not entitled for refund of Court fee. The very purpose of the Court Fee Act is to see that frivolous suits are not filed in the Court and those who file claim must first ascertain their rights carefully and then only levy Court fee. If some one files claim casually without ascertaining his rights, he is bound to suffer the loss of Court fee .”
It is pertinent to point out that the Court Fees Act, 1870, lays down the circumstances under which court fee can be refunded. In general, there is no specific clause for refund of court fee on withdrawal of a suit. A relevant provision in this regard is Section 16 of the said Act, which is as under:
“16. Refund of fee.—Where the court refers the parties to the suit to any one of the mode of settlement of dispute referred to in Section 89 of the Code of Civil Procedure, 1908 the plaintiff shall be entitled to a certificate from the court authorising him to receive back from the collector, the full amount of the fee paid in respect of such plaint.”
However, this provision is also not applicable for withdrawal of a suit in general.
I may also point out in the year 2010 (i.e., after the aforesaid Delhi High Court judgment of 2008), the said Court Fees Act, 1870, was amended by Delhi legislature, in so far as it applies to Delhi, by inserting a new Section 16-A (see here). As per this provision, on disposal of a suit at the initial stage before the hearing on the basis of the agreement between the parties, 50% of the court fee can be refunded, subject to the conditions mentioned in that provision. However, even this legal provision, which is applicable only to Delhi (and not to other areas in India), does not apply to withdrawal of suits in general.
This is the legal position of refund of court fee on withdrawal of a civil suit.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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