Rajasthan High Court: Full Court‑Fee Refund Allowed if Case Settled at Appellate Stage Under Section 89 CPC

The Rajasthan High Court has overturned a trial court’s refusal to refund court fees, holding that a litigant is entitled to full refund when a dispute is amicably settled under Section 89 of the CPC, even if the settlement occurs at the appellate stage after a decree or appeal.

Justice Arun Monga found that Section 65‑B of the Rajasthan Court Fees & Suit Valuation Act aligns with Section 89 CPC and supports refunds when resolution happens via court-facilitated ADR, such as mediation or Lok Adalat.

Highlighting the importance of easing judicial backlog, the Court said encouraging out-of-court settlements aligns with the goal of promoting efficient and speedy justice and instructed the issuance of a refund certificate to the appellant. 

[Harish Madhan v Kshema Power and Infrastructure Co. Pvt. Ltd.]