President Murmu Clears Delhi Law On Full Court Fee Refund For Settled Cases

New Delhi, Mar 11 (KNN) President Droupadi Murmu has approved the Court Fees (Delhi Amendment) Act, 2026, enabling litigants in the national capital to claim a full refund of court fees if disputes are settled amicably at any stage of proceedings.

The law, notified on March 6, 2026 by the Department of Law, Justice and Legislative Affairs, amends the Court Fees Act, 1870 as applicable to the National Capital Territory of Delhi. 

The legislation was passed by the Delhi Legislative Assembly on January 9, 2026, and received presidential assent on February 19, 2026.

Full Refund for Settled Disputes

The amendment substitutes Section 16 of the Act, allowing a plaintiff or counter-claimant to receive a court certificate authorising a full refund of the court fee when a dispute in a suit or appeal is settled or compromised.

The benefit applies at any stage of the proceedings, whether the settlement takes place with or without court intervention, and even if dispute resolution mechanisms under Code of Civil Procedure, 1908 Section 89—such as mediation or other alternative dispute resolution (ADR) methods—are not used.

Once the case, counterclaim or appeal is disposed of as settled, the litigant can obtain the refund from the collector or other competent authority.

Earlier Provision Removed

The amendment also removes Section 16A, which had been introduced under the Court Fees (Delhi Amendment) Act, 2010 and dealt with refund of court fees when disputes were settled before the hearing stage.

Officials said the revised law aims to encourage amicable dispute resolution and simplify the court fee refund process in Delhi.

Implications

By allowing refunds even without invoking ADR mechanisms under the Code of Civil Procedure, the law may reduce the financial burden on litigants—particularly businesses and MSMEs—in civil cases where court fees can be substantial. 

It could also encourage quicker settlements and help ease court backlogs through negotiated dispute resolution.

(KNN Bureau)