Jodhpur, November 10, 2026: The Rajasthan High Court has directed the refund of court fees after an appeal was withdrawn following an amicable settlement between the parties outside court. The decision reinforces the judiciary's approach of encouraging alternative dispute resolution and reducing unnecessary litigation.

A Single Bench of Justice Rekha Borana considered the matter in Balwant Rai v. Kshitiz Saxena, S.B. Civil First Appeal No. 627/2020.

Background of the Case

The dispute concerned property that, according to the appellant, had already been handed over to the respondent pursuant to an amicable settlement. The appellant consequently sought permission to withdraw the pending appeal. The respondent's counsel did not dispute the submission, following which the High Court dismissed the appeal as withdrawn.

After the withdrawal, the appellant sought a refund of the court fees paid in connection with the proceedings. The settlement had been reached privately, without a formal reference by the Court to any alternative dispute resolution mechanism.

High Court's Reasoning

The Court considered the applicability of Section 65-B of the Rajasthan Court Fees and Suits Valuation Act, 1961, which provides for the refund of court fees in specified circumstances involving settlement of disputes.

In deciding the application, the Single Bench relied on the Rajasthan High Court Division Bench ruling in Rajasthan State Co-operative Bank Ltd. v. DZ Card (India) Pvt. Ltd., decided on October 14, 2026.

The Division Bench had clarified that the benefit of court-fee refund is not necessarily restricted to settlements formally facilitated by the Court or conducted through the specific mechanisms mentioned under Section 89 of the Code of Civil Procedure, 1908. A lawful and valid settlement reached through an amicable process outside court may also qualify, subject to judicial scrutiny.

The Division Bench also cautioned that courts may refuse refunds where parties attempt to misuse the provision after prolonged litigation or frivolous proceedings.

Decision

Applying these principles, Justice Rekha Borana accepted that the appeal was being withdrawn pursuant to a compromise between the parties. The Court directed the refund of court fees under Section 65-B of the Rajasthan Court Fees and Suits Valuation Act, 1961.

The Registry was directed to issue the necessary refund certificate to the appellant's counsel.

Legal Significance

The decision highlights the importance of amicable dispute resolution in the Indian justice system. By recognising qualifying out-of-court settlements for court-fee refunds, the judiciary seeks to incentivise parties to resolve disputes without prolonged litigation.

It also reinforces that the refund benefit is subject to the legality and validity of the settlement and the equitable exercise of judicial discretion.

Case: Balwant Rai v. Kshitiz Saxena

Case Number: S.B. Civil First Appeal No. 627/2020

Court: Rajasthan High Court

Bench: Justice Rekha Borana

Relevant Provision: Section 65-B, Rajasthan Court Fees and Suits Valuation Act, 1961