🏛️ Court Fee Refund after Settlement: Rajasthan High Court Clears the Air

In a notable judgment, the Rajasthan High Court at Jodhpur has upheld the right of litigants to seek a full refund of court fees when a matter is settled through Alternative Dispute Resolution (ADR) mechanisms even after a decree is passed and during execution proceedings.

📌 Case Snapshot

  • Case Title: Harish Madhan v. Kshema Power & Infrastructure Co. Pvt. Ltd.

  • Citation: S.B. Civil Writ Petition No. 13265/2025

  • Date of Judgment: 17th July 2025

  • Judge: Hon’ble Mr. Justice Arun Monga

⚖️ Background

Harish Madhan, the petitioner, filed a recovery suit in 2023, which was decreed ex-parte in his favour in February 2024. During execution proceedings, the parties settled the matter through conciliation, and the case was disposed of via the National Lok Adalat in December 2024.

Relying on Section 65-B of the Rajasthan Court Fees & Suit Valuation Act, 1961, Harish sought a refund of the court fees paid. However, the trial court rejected the application, stating that since the decree was already passed, refund was not permissible.

🔍 High Court's Observations

The High Court noted that:

  • Section 65-B allows refund of full court fees when disputes are settled via any mode under Section 89 CPC (including Lok Adalat, conciliation, mediation, arbitration).

  • The key condition is settlement not the stage at which it occurs.

  • Denial of refund merely because the decree had already been passed would defeat the very purpose of encouraging ADR.

🧾 "If such an interpretation is upheld, then settlements at appellate or execution stages would be discouraged, directly conflicting with the intent of Section 89 CPC," the Court emphasized.

🏁 Verdict

The High Court:
✅ Set aside the trial court’s rejection order.
✅ Directed issuance of a refund certificate to the petitioner under Section 65-B.


✅ Promotes ADR: Reinforces judicial encouragement to resolve disputes amicably.
✅ Financial Relief: Ensures litigants aren't penalized for settling after the trial stage.
✅ Clarity in Law: Clarifies refund rights in post-decree settlements a grey area until now.

🧑‍⚖️ For lawyers and litigants alike, this judgment is a reminder that justice isn’t just about winningit's also about resolution, efficiency, and fairness.

📬 Have questions about court fees or ADR settlements? Drop them in the comments or connect with us!

#CourtFeeRefund #LokAdalat #ADR #LegalUpdate #RajasthanHighCourt #Section89CPC #CivilLitigation #LawSimplified #LegalLioness

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