Case Note & Summary
The petitioner, Bindu Balakrishna Patali, filed a suit (Com. O.S. 150/2024) before the LXXXIX Additional City Civil and Sessions Judge, Commercial Court Division, Bengaluru, seeking specific performance of an agreement. Subsequently, she filed an application under Order XXIII Rule 1(3) of the Code of Civil Procedure, 1908 (CPC) to withdraw the suit unconditionally. Along with the withdrawal application, she also sought a refund of the court fee deposited at the time of filing the suit, under Section 151 CPC. The trial court allowed the withdrawal of the suit but rejected the application for refund of court fee. Aggrieved by the rejection of the refund application, the petitioner approached the High Court of Karnataka under Article 227 of the Constitution of India. The High Court examined the provisions of Order XXIII Rule 1(3) CPC, which states that when a suit is withdrawn without any liberty to file a fresh suit, the plaintiff is entitled to a refund of the court fee paid. The court noted that the trial court had erroneously rejected the refund application despite the clear mandate of the proviso to Rule 1(3). The High Court allowed the writ petition, set aside the impugned order dated 03.09.2024, and directed the trial court to refund the court fee deposited by the petitioner. The court emphasized that the refund is automatic upon unconditional withdrawal of the suit and no separate application is necessary.
Headnote
A) Civil Procedure - Withdrawal of Suit - Refund of Court Fee - Order XXIII Rule 1(3) CPC - The petitioner/plaintiff filed a suit for specific performance and later sought to withdraw it unconditionally. The trial court rejected the application for refund of court fee. The High Court held that upon withdrawal of the suit under Order XXIII Rule 1(3) CPC, the plaintiff is entitled to a refund of the court fee deposited at the time of filing, as per the proviso to Rule 1(3) which mandates refund when the suit is withdrawn without any liberty to file a fresh suit. (Paras 1-5)
Issue of Consideration
Whether the petitioner/plaintiff is entitled to a refund of court fee deposited at the time of filing the suit upon withdrawal of the suit under Order XXIII Rule 1(3) of the Code of Civil Procedure, 1908.
Final Decision
The High Court allowed the writ petition, set aside the order dated 03.09.2024 passed by the LXXXIX Additional City Civil and Sessions Judge, Commercial Court Division, Bengaluru, and directed the trial court to refund the court fee deposited by the petitioner at the time of filing the suit.
Law Points
- Refund of court fee upon withdrawal of suit
- Order XXIII Rule 1(3) CPC
- Section 151 CPC
- Article 227 of the Constitution of India
