Litigants to now get court fee back even in private deals in Delhi
In a significant move aimed at reducing the financial burden on litigants and promoting out-of-court settlements, the Delhi Assembly has passed an amendment to the Court Fees Act, 1870. This amendment will now allow petitioners to receive a full refund of court fees even if disputes are settled outside the court through private deals. This development is expected to benefit litigants in a major way, as they will no longer have to bear the financial burden of court fees in cases where disputes are resolved amicably.
Currently, the Court Fees Act, 1870, provides for a refund of court fees to petitioners under certain conditions. If a dispute is resolved through court-referred alternative dispute resolution (ADR) mechanisms, such as mediation or arbitration, the petitioner is entitled to a 100% refund of the court fees paid. However, if the dispute is settled privately, without the involvement of the court, the petitioner is only eligible for a 50% refund of the court fees. This has often been seen as a deterrent to litigants who wish to settle their disputes amicably, as they would still have to bear a significant portion of the court fees.
The amendment passed by the Delhi Assembly seeks to change this scenario. Under the new provisions, a petitioner will be entitled to a full refund of court fees even if the dispute is settled privately, without the involvement of the court. This move is expected to encourage litigants to explore out-of-court settlements, which can be a more efficient and cost-effective way of resolving disputes.
The benefits of this amendment are multifaceted. Firstly, it will help reduce the financial burden on litigants, who often have to spend a significant amount of money on court fees, lawyer’s fees, and other expenses related to litigation. By providing a full refund of court fees, the amendment will help litigants recover some of the costs they incur during the litigation process.
Secondly, the amendment is expected to promote out-of-court settlements, which can help reduce the backlog of cases in courts. The Indian judiciary is notorious for its slow pace, and cases often take years to be resolved. By encouraging litigants to settle their disputes privately, the amendment can help reduce the number of cases that come to court, thereby helping to unclog the judicial system.
Thirdly, the amendment will help promote alternative dispute resolution (ADR) mechanisms, which are often more efficient and cost-effective than traditional litigation. ADR mechanisms, such as mediation and arbitration, can help resolve disputes quickly and amicably, without the need for lengthy and expensive court proceedings.
Finally, the amendment will help improve access to justice for litigants, particularly those who cannot afford the high costs of litigation. By providing a full refund of court fees, the amendment will help make the justice system more accessible and affordable for all, regardless of their financial means.
In conclusion, the amendment to the Court Fees Act, 1870, passed by the Delhi Assembly, is a significant move that is expected to benefit litigants in a major way. By providing a full refund of court fees even in cases of private settlements, the amendment will help reduce the financial burden on litigants, promote out-of-court settlements, and improve access to justice. This development is a welcome step towards making the justice system more efficient, effective, and accessible to all.
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