Madras court blocks full fee refund after trial starts
Politics

Madras court blocks full fee refund after trial starts

The Hindu·

The Madras High Court held litigants cannot recover full court fees if civil suits settle after trial evidence begins, diverging from the Supreme Court's 2021 M.C. Subramaniam ruling. Justice P B Balaji followed the 2010 Afcons Infrastructure precedent instead. Section 69 of Tamil Nadu's 1955 Court Fees Act limits refunds to settlements before merits evidence.

Prism

What It Means For You

  • Parties settling after testimony starts may forfeit full refunds even if courts once ordered 50 percent back.
  • Tamil Nadu collects fees to fund court infrastructure, staff salaries and trial costs, the judge wrote.
  • Litigants referred to mediation before trial can still pursue 100 percent refunds under Section 69A when disputes resolve.

What's Happening

  • Advocate General Vijay Narayan argued the 2021 Supreme Court ruling ignored equal-bench Afcons law.
  • Two civil revision petitions from Tiruvallur and Chengalpattu triggered the ruling.
  • Justice Balaji suggested restoring 2007 wording on Section 69A to avoid premature refunds after ADR referral.

Court fee refunds in Tamil Nadu

  • Section 69 originally allowed 50 percent refunds before any merits evidence; 2017 amendments raised that to 100 percent pre-evidence.
  • Afcons held Section 89 ADR referrals must occur before trial to prevent delay tactics.
  • The judge recorded appreciation to amicus and bar members who argued after an open invitation.
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