Litigants will not be entitled to refund of court fees if disputes get settled out of court after commencement of trial, rules Madras High Court

The Madras High Court has ruled that litigants will not be entitled to a refund of court fees if a dispute is settled out of court after the commencement of trial.

Justice P.B. Balaji delivered the ruling, declining to follow the Supreme Court’s 2017 judgment in the M.C. Subramaniam case. Instead, the court relied on the Supreme Court’s 2010 decision in Afcons Infrastructure Ltd. v. Cherian Varkey Construction Co. (P) Ltd.

The order clarifies the legal position on court fee refunds in cases where settlement takes place only after the trial has begun. The current status is that such refunds will not be available under the view taken by the Madras High Court in this case.