Once evidence is recorded, a settlement outside court earns no refund of court fee, Madras High Court holds

3 November 2026

The Madras High Court has settled a practical question about court fees. In Susheela Kawar versus M Pettu Lakshmi, reported as 2026 MHC 4385, Justice P B Balaji held that parties are not entitled to a refund of court fee when a matter is settled out of court after evidence has been recorded. Under the Tamil Nadu Court Fees and Suits Valuation Act, 1955, Section 69 allows a refund where the case ends before evidence is recorded, while Section 69-A gives a full refund where a dispute referred under Section 89 of the Code of Civil Procedure is settled. The court said the legislature deliberately barred a refund once evidence has been recorded on the merits, and that court fee goes to the State exchequer, which pays for courts and trials. Both revision petitions were dismissed. A copy of the order was sent to the Tamil Nadu Law Commission to examine the gap where a case referred to mediation fails to settle and returns to trial.