Case Note & Summary
The dispute arose from counsel fees claimed in land acquisition references. The respondent had appeared for the Vijayawada-Guntur-Tenali Urban Development Authority initially as Government Pleader and later as private counsel. After ceasing as Government Pleader, he filed vakalatnama and represented the authority. He claimed fees based on a memorandum of costs, but the authority disputed liability. The matter was referred to the Advocate General of Andhra Pradesh, who certified the fee claimed as correct and that the respondent was entitled. The respondent, dissatisfied, insisted on proper fixation; the authority did not pay, so respondent filed a writ petition before the High Court. A Division Bench of the Andhra Pradesh High Court in W.A.No.590/94 by order dated September 5, 1995 held that once the court fixed the fee, parties were bound to pay and could not go behind it, proceeding on the premise of contractual relation. On appeal, the Supreme Court considered the only question whether respondent was entitled to a minimum fee of Rs.2,000 in each reference case. The Court distinguished between State counsel, whose fee is regulated by State Government rules, and private counsel, governed by High Court advocates fee rules. The Court examined Rule 8(9) of the Andhra Pradesh Advocates Fees Rules, which prescribed fee in land acquisition cases. It provided that as between Collector and claimants, fee shall be 5% on amount claimed in excess of award, subject to minimum Rs.100 and maximum Rs.2,000; as between rival claimants, fee calculated as for suits under Rule 4(II). The Supreme Court interpreted that in cases where fee is fixed on basis of claim in a reference, the court must calculate fee on amount claimed in reference and awarded under Section 26, minimum Rs.100 at 5% on amount claimed by claimants, maximum Rs.2,000. It held that it is not necessarily Rs.2,000 in every case; it depends on valuation of the claim awarded under Section 26 and varies between minimum and maximum. If calculated fee exceeds Rs.2,000, court limits it to that amount. Therefore, the respondent was not per se entitled to Rs.2,000 per case; maximum should not be automatically determined. The respondent's senior counsel undertook to get decrees and claims settled and to sit with appellant's counsel to calculate fee in each case. The Court granted four weeks for calculations and directed that after calculations worked out, amounts be notified to Registry and incorporated in order. The appeal was disposed of without costs. The judgment clarifies that maximum fee under the advocates fees rules is a cap, not a fixed entitlement, and each case requires individual computation based on statutory rules.
Headnote
A) Legal Profession - Advocates' Fees - Fee Calculation in Land Acquisition References - Andhra Pradesh Advocates Fees Rules, Rule 8(9); Land Acquisition Act, 1894, Section 26 - The respondent, initially Government Pleader and later private counsel for the appellant authority, claimed Rs.2,000 minimum fee in each land acquisition reference; High Court had treated court-fixed fee as contractual and binding. Supreme Court examined Rule 8(9) and held that fee is to be calculated at 5% on amount claimed in reference and awarded under Section 26, with minimum Rs.100 and maximum Rs.2,000; not automatic Rs.2,000 per case. Held that entitlement is variable and requires individual computation. B) Legal Profession - Advocates' Fees - Distinction Between State Counsel and Private Counsel - Andhra Pradesh Advocates Fees Rules; State Government Rules - State counsel fee is regulated by State Government rules where government counsel is entitled to fee or fee fixed by court; private counsel fee is governed by High Court Advocates Fees Rules, not merely contractual fixation. Held that fee rules provide statutory measure for calculation and cannot be bypassed by court's certification. C) Civil Procedure - Fee Fixation - Directions for Joint Computation - Supreme Court accepted respondent's undertaking to sit with appellant's counsel and jointly calculate fee in each case within four weeks; directed notification of calculated amounts to Registry for incorporation in order; appeal disposed of without costs. Held that no automatic maximum fee; case-wise computation required.
Issue of Consideration
Whether respondent counsel is entitled to a minimum fee of Rs. 2,000 in each land acquisition reference case where the reference Court certified the fee; and what is the correct method for computing counsel fee under Rule 8(9) of the Andhra Pradesh Advocates Fees Rules read with Section 26 of the Land Acquisition Act, 1894.
Final Decision
Appeal disposed of. Supreme Court held that respondent is not automatically entitled to Rs.2,000 fee in each reference; fee must be calculated under Rule 8(9) at 5% on amount claimed in reference and awarded under Section 26 with minimum Rs.100 and maximum Rs.2,000, varying case-wise. Parties directed to jointly calculate within four weeks and notify Registry; no costs.
Law Points
- Private counsel fee in land acquisition cases is regulated by Rule 8(9) of Andhra Pradesh Advocates Fees Rules
- Fee is 5% on amount claimed in excess of award subject to minimum Rs. 100 and maximum Rs. 2
- 000
- Fee must be calculated on amount claimed in reference and awarded under Section 26 of Land Acquisition Act
- 1894
- Maximum fee is not automatic and varies per case
- State counsel fee is regulated by State Government rules while private counsel fee is governed by High Court rules
- Court may direct parties to jointly compute fee
