In, Shyju. B vs Sanjeev, a Single Bench of Kerala HC has held that, When the court below had referred the parties to mediation, the court below was obliged to await the mediation report before passing any further orders in the suit. It is also statutory that when a suit is settled under Section 89 of the Code, without adjudication, the plaintiff is entitled for refund of the entire court fee as provided in Section 69 (A) of the Kerala Court Fees and Suit Valuation Act, 1959.

Facts

The petitioner's case is that, he is the plaintiff in the suit filed before the lower court against the respondent. During the pendency of the suit, the parties were referred for mediation. They settled the dispute and entered into memorandum of agreement before the mediator. The petitioner filed an Application for refund of the court fee paid as provided under Section 69(A) of the Kerala Court Fees and Suit Valuation Act. But, the court below has dismissed the application holding that, as the suit is dismissed as not pressed, the petitioner is not entitled for refund of court fee. Ext.P4 is erroneous and wrong. Hence, the original O.P.(C)No.1361 of 2022 3 petition.

Aggrieved by the order, the petitioner filed the petition before the Kerala HC to set aside the order of lower court.

Court Observation

The Single Bench of Kerala HC after examining the report of mediation and the memorandum agreement between the parties, observed the question of; Whether there is any error in the order of the Lower court.

The Bench observed that, when the court below had referred the parties to mediation, the court below was obliged to await the mediation report before passing any further orders in the suit.

Further, it is also statutory that when a suit is settled under Section 89 of the Code, without adjudication, the plaintiff is entitled for refund of the entire court fee as provided in Section 69 (A) of the Kerala Court Fees and Suit Valuation Act, 1959.

Court Judgment

The Kerala HC while disposing off the petition has held that, order passed by the court below is erroneous and wrong. The court below ought to have recorded memorandum of agreement and disposed of the suit as per the terms and conditions in the mediation agreement, instead of dismissing the suit as not pressed.

Further HC held that, the petitioner would be at liberty to move the court below and seek for the review of the decree dismissing the suit as not pressed and under Section 89 of the Code, the plaintiff is entitled for refund of the entire court fee as provided in Section 69 (A) of the Kerala Court Fees and Suit Valuation Act, 1959.

Case: Shyju.B vs Sanjeev.

Citation: OP(C) NO. 1361 OF 2022

Bench: Hon’ble Mr Justice C.S. Dias

Decided on:  12thAugust, 2022.

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Anjali Tyagi