Case Note & Summary
The appellant filed an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 challenging an order dated 28.08.2015 passed under Section 34 by the Principal District Judge, which set aside an arbitral award dated 29.08.2015. The appellant paid a court fee of Rs.25 under Article 13 of Schedule II of the Maharashtra Court Fees Act, 1959. The court office and the respondent No.2 (National Highways Authority of India) raised a preliminary objection that the proper court fee was payable under Article 4 of Schedule I, being ad valorem on the amount or value of the subject matter, as was paid on the application under Section 34. The Court examined the relevant provisions: Article 3A of Schedule I (introduced w.e.f. 01.09.2009) prescribes a fee of one-half of the ad valorem fee on the amount or value of the award for an application or petition (including memorandum of appeal) to set aside or modify an arbitral award under the Arbitration Act. Article 4 of Schedule I applies to a 'memorandum of appeal' generally, requiring ad valorem fee on the amount or value of the subject matter. Article 13 of Schedule II provides a fixed fee of Rs.25 for applications or petitions not otherwise provided for. The Court held that an appeal under Section 37 is a 'memorandum of appeal' and not an 'application', and therefore falls under Article 4 of Schedule I, not Article 13 of Schedule II. The Court also noted that Article 3A specifically covers applications under Section 34, but the appeal under Section 37 is not covered by Article 3A. Consequently, the appellant was directed to pay the deficit court fee as per Article 4 of Schedule I within two weeks, failing which the appeal would stand dismissed without further reference.
Headnote
A) Court Fees - Arbitration Appeal - Section 37 of Arbitration and Conciliation Act, 1996 read with Article 4 of Schedule I and Article 13 of Schedule II of Maharashtra Court Fees Act, 1959 - Proper Court Fee - The issue was whether an appeal under Section 37 of the Arbitration Act requires court fee under Article 13 of Schedule II (fixed fee of Rs.25) or under Article 4 of Schedule I (ad valorem). The Court held that since the appeal is a memorandum of appeal against an order under Section 34, it falls under Article 4 of Schedule I, which applies to 'memorandum of appeal' generally, and the fee is ad valorem on the amount or value of the subject matter. The fixed fee under Article 13 of Schedule II applies only to applications or petitions not otherwise provided for, and an appeal is not an application. (Paras 1-10)
Issue of Consideration
Whether the court fee payable on an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 is governed by Article 13 of Schedule II (fixed fee of Rs.25) or Article 4 of Schedule I (ad valorem) of the Maharashtra Court Fees Act, 1959
Final Decision
The Court held that the appeal under Section 37 of the Arbitration and Conciliation Act, 1996 is a memorandum of appeal and not an application, and therefore court fee is payable under Article 4 of Schedule I of the Maharashtra Court Fees Act, 1959, being ad valorem on the amount or value of the subject matter. The appellant was directed to pay the deficit court fee within two weeks, failing which the appeal would stand dismissed without further reference.
Law Points
- Court fee on appeal under Section 37 of Arbitration and Conciliation Act
- 1996 is payable under Article 4 of Schedule I of Maharashtra Court Fees Act
- 1959
- being ad valorem on the amount or value of the subject matter
- and not fixed fee under Article 13 of Schedule II
