No Full Court Fee Refund for Mediation Settlements: The Supreme Court

SC clarified that mediation and Lok Adalat are distinct dispute resolution methods,while Lok Adalat awards qualify for a 100% court fee refund under Section 21 of the Legal Services Authorities Act (1987), mediation settlements under Section 89 of the CPC are governed by state laws, such as the Maharashtra Court Fees Act, 1959, which provides a 50% refund.

The appellant argued a full refund based on the Central Court Fees Act, 1870, applicable to Lok Adalat cases. The Bombay HC ruled that the Maharashtra Act governs court fees in the state, rendering the Central Act inapplicable. 

The Court ruled that the 1870 Act does not cover state laws governing court fees and mediation settlements. While dismissing the appeal, the Court granted a full refund as a one-time relief, not a binding precedent.