Law Commission Report No. 220- Need to fix Maximum Chargeable Court-fees in Subordinate Civil

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  • 8/19/2019 Law Commission Report No. 220- Need to fix Maximum Chargeable Court-fees in Subordinate Civil

    1/19

    GOVERNMENT OF INDIA

    LAW COMMISSION OF INDIA

    Need to fix Maximum Chargeabe Court!fee" i#Subordi#ate Ci$i Court"

    Report No. 220

    Mar%h &''(

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    LAW COMMISSION OF INDIA)RE*ORT NO+ &&',

    Need to fix Maximum Chargeabe Court!fee" i#Subordi#ate Ci$i Court"

    For-arded to the .#io# Mi#i"ter for La- a#d/u"ti%e0 Mi#i"tr1 of La- a#d /u"ti%e0 Go$er#me#t of I#dia b1 Dr+ /u"ti%e AR+ La2"hma#a#0 Chairma#0La- Commi""io# of I#dia0 o# the 3'th da1 of Mar%h0 &''(+

    The 45th  La- Commi""io# -a" %o#"tituted for a

    6eriod of three 1ear" from 4"t

     Se6tember0 &''7 b1Order No+ A+89'4&:4:&''7!Adm#+III )LA, dated the47th  O%tober0 &''70 i""ued b1 the Go$er#me#t of I#dia0 Mi#i"tr1 of La- a#d /u"ti%e0 De6artme#t of Lega Affair"0 Ne- Dehi+

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    The La- Commi""io# %o#"i"t" of the Chairma#0 theMember!Se%retar10 o#e fu!time Member a#d "e$e#6art!time Member"+

    Chairma#

    ;o#umari Rahe?aDr+ >+ N+ Cha#dra"e2hara# *iaiProf. (Mrs.) Lakshmi Jambholkar

    Smt+ >irti Si#ghShri /u"ti%e I+ Ve#2ata#ara1a#aShri O+*+ SharmaDr+ )Mr"+, Sh1amha *a66u

    The La- Commi""io# i" o%ated i# ILI =uidi#g0

    d Foor0 =hag-a# Da" Road0Ne- Dehi!44' ''4

    La- Commi""io# Staff 

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    Member!Se%retar1

    Dr. Brahm A. Agrawal

    Re"ear%h Staff 

    Shri Su"hi >umar @ /oi#t Se%retar1 La-Offi%er 

    M"+ *a-a# Sharma @ Additio#a La- Offi%er  hri J. !. "la#a$ Rao % A&&itio$al Law 'ffier

    Shri A+ >+ .6adh1a1 @ De6ut1 La- Offi%er  Dr+ V+ >+ Si#gh @ A""i"ta#t LegaAd$i"er 

    Dr+ R+ S+ Shri#et @ Su6eri#te#de#t )Lega,

    Admi#i"trati$e Staff 

    Shri Su"hi >umar @ /oi#t Se%retar1 La-Offi%er 

    Shri D+ Choudhur1 @ .#der Se%retar1Shri S+ >+ =a"u @ Se%tio# Offi%er  Smt+ Ra?#i Sharma @ A""i"ta#t Librar1

      I#formatio# Offi%er 

    The text of thi" Re6ort i" a$aiabe o# the I#ter#etat@

    htt6@::---+a-%ommi""io#ofi#dia+#i%+i#

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     B Go$er#me#t of I#diaLa- Commi""io# of I#dia

    The text i# thi" do%ume#t )ex%udi#g theGo$er#me#t Logo, ma1 be re6rodu%ed free of %harge i# a#1 format or medium 6ro$ided that it i"re6rodu%ed a%%urate1 a#d #ot u"ed i# a mi"eadi#g%o#text+ The materia mu"t be a%2#o-edged a"Go$er#me#t %o61right a#d the tite of the do%ume#t"6e%ified+

    A#1 e#uirie" reati#g to thi" Re6ort "houd beaddre""ed to the Member!Se%retar1 a#d "e#t either b1 6o"t to the La- Commi""io# of I#dia0 d Foor0ILI =uidi#g0 =hag-a# Da" Road0 Ne- Dehi!44'''40I#dia or b1 emai to %i!da#i%+i# 

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    D.O. No. 6(3)/154/2007-LC (LS) 30thMarch, 2009

    Dear Dr. Bhar!a" #$,

    S%&"ect' Nee to $ Ma$*%* Char+ea&e Co%rt-ee $  S%&or$ate C$$ Co%rt

    a* or!ar$+ here!$th the 220th  eort o the La!Co**$$o o $a o the a&oe %&"ect.

    #%t$ce r$ha er Co**$ttee o Le+a $ tate that

    o*eth$+ *%t &e oe, !e et%re to tate, to arret theecaat$+ $ce o &%reo*e cae o co%rt ee. hat the Stateho% ot e "%t$ce $ a o&$o% roo$t$o, &%t the h$+h rate o co%rt ee o! e$e eae o a$ a$&$ $ ao o&$o%8.

    he S%re*e Co%rt $ Secretary to Government of Madras v.P. R. Sriramulu (1996) 1 SCC 345: o&ere that there ho% ao&e o*e *ea%re o %$or*$t $ the cae o co%rt-eethro%+ho%t the co%tr a there aear to &e a at $erece $ thecae o co%rt-ee $ ar$o% State o the co%tr. he ea$&$$t o 

    a $e *a$*%* char+ea&e ee ao eere er$o%co$erat$o.

    he La! Co**$$o ha ao a ar &ac; a 195< $ $t 14th

    eort o eor* o #%$c$a *$$trat$o8 reco**ee thatthere ho% &e a &roa *ea%re o e=%a$t $ the cae o co%rt-ee a oer the co%tr, a that there ho% ao &e a $e*a$*%* to the ee char+ea&e.

    $t 1ee Str%ct%re8

    (2004), the Co**$$o $ ot $ a reao to ta;e a $eret$e! tha the oe eree & the S%re*e Co%rt a theCo**$$o $ $t 14th  a 12

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    co%rt ee ho% ot aere aect the r$+ht o acce to "%t$ce.>%rther, the a*o%t coecte & !a o co%rt ee ho% ot &e *oretha the ee$t%re $c%rre $ a*$$trat$o o c$$ "%t$ce. S%&"ectto thee $*$tat$o o, the a*o%t o $e co%rt ee recr$&e%er Sche%e 2 o the Co%rt-ee ct, 1

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    Need to fix Maximum Chargeabe Court!fee" i#Subordi#ate Ci$i Court"

    TA=LE OF CONTENTS

    Fa+e No.

    . NODCON 9-10

    . #DCL GH@ ND HLHHFOS O> L@ COMMSSONO> ND 11-1<

    . HCOMMHNDON 19

    I+ INTROD.CTION

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    1.1 Co%rt-ee $ c$$ co%rt aear to hae &ee $rt e$e $ the

    1

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    1.4 Sett$+ o%t $ the State*et o O&"ect a eao that $t !a

    ee$et to *a;e a +eera re%ct$o $ the rate o co%rt-ee

    char+e o c$$ %$t a to reert to the r$c$e o *a$*%* ee

    !h$ch o&ta$e %er the or*er a!, Co%rt-ee ct, 1

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    II+ /.DICIAL VIEW AND EARLIER RE*ORTS OF LAW

    COMMISSION OF INDIA

    2.1 he State o Mara eacte the Mara Co%rt-ee a S%$t

    Ga%at$o ct, 1955 (ct 14 o 1955) !h$ch ro$e or a %$or* ad 

    valorem  ee at ee-a-a-ha er cet !$tho%t $*$t. he $+h

    Co%rt o Mara, accor$+, re$e $t r%e o the Or$+$a S$e

    a & r%e 1 o Orer 2 o the $+h Co%rt >ee %e, $e the

    co%rt-ee $ a %$t $t$t%te o or ater 19.05.1955 to &e e$e

    accor$+ to the ct 14 o 1955 a the r%e ra*e there%er.

    Ser$e o $t$+at$o &eore the $+h Co%rt a the S%re*e Co%rt

    =%et$o$+ the a$$t a vires o the ct 14 o 1955 !ere $e o

    the +ro% that there !a o "%t$$cat$o at a or the $creae o 

    co%rt-ee $ 1955 a ao =%et$oe the e o co%rt-ee o a at

    rate o ee-a-a-ha er cet o a ca$* !$tho%t $*$t +$$+ %

    the a& te* o taer$+ &a$ !h$ch !a $ o+%e t$ 1955. 7 

    2.2 he Mara $+h Co%rt $ the cae o Zenith Lamps and 

    Electricals Ltd. v. The Registrar !igh "ourt Madras

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    Co%rt $ 197510 he that rt$ce 1 $ Sche%e o the Co%rt-ee ct

    a %&-r%e (1) o r%e 1 o Orer 2 o the $+h Co%rt >ee %e a

    $a$, ho$+ that there $ o correat$o &et!ee the rece$t a

    the ee$t%re o the cot o a*$$trat$o o c$$ "%t$ce $ co%rt.he D$$$o Bech o the $+h Co%rt ao eo%ce the e o 

    ee-a-a-ha er cet ad valorem  at rate !$tho%t $*$t, tat$+

    that ee Satha*%rthJ eort $ ot reco**e %ch a hea

    ad valorem ee at a at rate !$tho%t $*$t, &%t $ act %++ete o!er 

    rate o co%rt-ee.

    2.4 he a&oe "%+*et ca*e % $ aea &eore the S%re*e

    Co%rt a the three-#%+e Bech o the Co%rt & $t "%+*et ate

    22.11.1995 $ the cae o Secretary To Government of Madras v. P.

    R. Sriramulu11  %he the a$$t o e o ad valorem  co%rt-ee,

    ho$+ that the a*o%t coecte & !a o co%rt-ee o ad valorem

    cae ee ot ta or correo to ee$t%re $c%rre $

    a*$$trat$o o c$$ "%t$ce a the State e"o the !$et at$t%e$ the *atter o ecoo*$c re+%at$o a the $creae $ the co%rt-

    ee ha to &e arec$ate ha$+ re+ar to the $creae ee o 

    ree%e & reao o the $creae cot o the a*$$trat$o "%t$ce.

    o!eer, the Co%rt $ ot co$er the ea o "%t$$a&$$t or the

    $creae $ the e & the ct 14 o 1955, o !h$ch the cae ha

    &ee ear$er re*ae & the Co%rt.

    2.5 O the other ha, $ P. M. #sh$athanarayana Setty v. State

    of %arnata&a'(  a three-#%+e Bech o the S%re*e Co%rt ha he

    1  P. %. Sriramulu v. %e&istrar, 'i&h Court, Madras, 19- (I" )LJ &911  (1996) 1 SCC 3451#  'upra note &

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    that there ho% &e a &roa a +eera correat$o &et!ee the ee

    a eee, ot acc%rate or ar$th*et$ca e=%$aece.

    2.6 he Mara $+h Co%rt $ the cae o Zenith Lamps and Electricals Ltd. )s The Registrar !igh "ourt Madras'* he that or a

    ee there ha to &e a correat$o &et!ee the $co*e a the

    ee$t%re, that the e ho% &e reaoa&e a that a e o

    a %$tor $ the c$$ co%rt !here& ree%e are rea$?e +eera a

    %reate to h$ ca%e !$ to that etet, &e a $*ot $ the at%re

    o a ta.

    2.7 he ho$+ o the S%re*e Co%rt $ Secretary Government 

    of Madras v. Zenith Lamp + Electrical Ltd ', $ a oo!'

    th$ cae !e are cocere !$th the a*$$trat$o o 

    c$$ "%t$ce $ a State. he ee *%t hae reat$o to the

    a*$$trat$o o c$$ "%t$ceK. t $ ree to e a *a

    ee $ o*e cae, a ar+e ee $ other, %&"ect o co%re to the ro$$o o rt$ce 14. B%t oe th$+ the

    Le+$at%re $ ot co*etet to o, a that $ to *a;e

    $t$+at cotr$&%te to the $creae o +eera %&$c

    ree%eK. here *%t &e a &roa correat$oh$ !$th

    the ee coecte a the cot o a*$$trat$o o c$$

     "%t$ceK. @e a+ree !$th the Mara $+h Co%rt $ the

    reet cae that the ee ta;e $ Co%rt are ot a

    cate+or & the*ee a *%t cota$ the eet$a

    ee*et o the ee a a$ o! & th$ Co%rt.8

    1&  'upra note !14  'upra note 9

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    2.< he ho$+ o the Mara $+h Co%rt $ P. R. Sriramulu v. The

    Registrar !igh "ourt Madras'5  $ a oo!'

    @hat $, ho!eer, ecear to ee $ tet$+ the a$$to the e $, $t eet$a character, a to !hether $t

    at$$e the cocet o ee. K $t$+at a co%rt-ee o

    the theor that he $ &o% to co*eate or the cot o 

    er$ce reere to h$* $ the a*$$trat$o o c$$

     "%t$ce & the Co%rt, a he $ ot cae %o to a

    to!ar e$o char+e !h$ch reate to at er$ce

    reere & ret$re "%$c$a o$cer to other $t$+at

    re$o%. K O a aa$ o the ore+o$+ tate*et

    a $+%re, !e are cear o the o$$o that ee a $

    1954-55 a the %&e=%et ear *et$oe $ the

    State*et to aee to the %e*etar

    co%ter-a$a$t o Mr. Sh$a;%*ar, the State ha &ee

    *a;$+ ro$t r%$+ to eera a;h a $ o*e earear ha a crore o r%ee oer the act%a cot o 

    a*$$trat$o o c$$ "%t$ce $ Co%rt.8

    2.9 he ho$+ o the S%re*e Co%rt $ Secretary To Government 

    of Madras v. P. R. Sriramulu'-  $ a oo!'

    a cae $t $ ao ot the re=%$re*et o a! that the

    coect$o ra$e thro%+h the e ho% eact ta or 

    correo to the ee$t%re $ the a*$$trat$o

    o c$$ "%t$ce. t ha area &ee r%e & th$ Co%rt

    1  'upra note 11  'upra note 11

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    that the correat$o &et!ee the a*o%t ra$e thro%+h

    the ee a the eee $c%rre $ ro$$+ the

    er$ce ho% ot &e ea*$e !$th eact$t%e !$th a

    $e! to acerta$ a acc%rate a ar$th*et$cae=%$aece &%t the tet !o% &e at$$e $ a &roa

    a +eera correat$o $ o% to e$t. K Oce $t $

    eta&$he that the r$*ar a eet$a %roe $ the

    reer$+ o ec$$c er$ce to a ec$$e ca, $t

    &eco*e $**ater$a that the State ha eare certa$

    &ee$t o%t o $t $$rect. K Beore art$+ !$th thee

    *atter, !e *a o$t o%t that $t co% ot &e $%te

    that the a*$$trat$o o "%t$ce $ a er$ce !h$ch the

    State $ %er a o&$+at$o to reer to $t %&"ect. here

    ca &e o t!o o$$o that the a*o%t ra$e ro* the

    %$tor & !a o ee ho% ot or*a ecee the

    cot o the a*$$trat$o o "%t$ce &eca%e, o$&

    there co% &e o "%t$$cat$o !$th the State to er$ch$te ro* h$+h co%rt ee or to ec%re ree%e or 

    +eera a*$$trat$o. he tota rece$t ro* the co%rt

    ee ho% &e %ch a & a ar+e ca coer the cot o 

    a*$$trat$o o "%t$ce. here ho% ao &e o*e

    *ea%re o %$or*$t $ the cae o co%rt ee

    thro%+ho%t the co%tr a there aear to &e a at

    $erece $ the cae o co%rt ee $ ar$o% State

    o the co%tr. he ea$&$$t o a $e *a$*%*

    char+ea&e ee ao eere er$o% co$erat$o.8

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    2.10 he ho$+ o the S%re*e Co%rt $ P. M. #sh$athanarayana

    Setty v. State of %arnata&a'  $ a oo!'

    he correat$oh$ &et!ee the a*o%t ra$e thro%+h

    the eeJ a the eee $oe $ ro$$+ theer$ce ee ot &e ea*$e !$th a $e! to

    acerta$$+ a acc%rate, ar$th*et$ca e=%$aece or 

    rec$$o $ the correat$o &%t $t !o% &e %$c$et that

    there $ a &roa a +eera correat$o. K No! at the

    e o the a, !hat re*a$ $ the %++et$o ecear

    $ re+ar to the rat$oa$at$o o the co%rt-ee %er the

    a"atha ct a the arata;a ct. he

    ar+%*et $ the cae h$+h$+ht a $*ortat aect. he

    e o co%rt-ee at rate reach$+ 10 er cet ad valorem

    oerate harh a a*ot te to r$ce "%t$ce o%t o 

    the reach o *a $tree $t$+at. he D$rect$e

    Fr$c$e o State Fo$c, tho%+h ot tr$ct eorcea&e

    $ co%rt o a!, are et %a*eta $ the +oerace $the co%tr. he cot$t%te o "%r$ $ a @eare State.

    he recr$t$o o %ch h$+h rate o co%rt ee ee $

    *a ca$* a ao !$tho%t a %er $*$t $ ar+er 

    ca$* $ er$o% coe to ar&$trar$e, a

    %cot$t%t$oa$t. he $ea $, o co%re, a tate o 

    aa$r !here the State $ ea&e to o a!a !$th the

    r$c$+ o "%t$ce $ $t co%rt o "%t$ce. th$ reach or 

    the $ea $t ere to reca the !or o o&ert

    ee' So*e *e ee th$+ a the are a a

    !h, rea* th$+ that eer !ere a a !h

    1-  'upra note &

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    otP Khe +oer*et cocere ho% &eto!

    attet$o o thee *atter a &r$+ o%t a rat$oa$?at$o

    o the e$e.8

    #%11 .he Law Commission of India has e/amined the issue of le0 of court

    fees in its followin2 Reports3

    (a" 14th Report titled “Reform of Judicial Administration” (19!"

    he Co**$$o o&ere that the ar+%*et that $t $

    ecear to $*oe h$+h co%rt-ee to reet r$oo%

    $t$+at$o ha o %&tace thee $creae hae &ee

    +eera "%t$$e o the +ro% o the ee o $creae

    ree%e & reao o the $creae cot o the

    a*$$trat$o o "%t$ce, a reco**ee a %er'

    (1) t $ oe o the r$*ar %t$e o the State to

    ro$e the *ach$er or the a*$$trat$o

    o "%t$ce a o r$c$e $t $ ot roer or the State to char+e ee ro* %$tor $

    co%rt.

    (2) He $ co%rt ee are char+e, the ree%e

    er$e ro* the* ho% ot ecee the cot

    o the a*$$trat$o o c$$ "%t$ce.

    (3) he *a;$+ o a ro$t & the State ro* the

    a*$$trat$o o "%t$ce $ ot "%t$$e.

    (4) Ste ho% &e ta;e to re%ce co%rt ee o

    that the ree%e ro* $t $ %$c$et to coer 

    the cot o the c$$ "%$c$a eta&$h*et.

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    Fr$c$e aao+o% to thoe a$e $

    H+a ho% &e a$e to *ea%re the

    cot o %ch eta&$h*et. he aar$e o 

     "%$c$a o$cer ho% &e a char+e o the+eera ta-aer.

    (5) here ho% &e a &roa *ea%re o e=%a$t

    $ the cae o co%rt ee a oer the co%tr.

    here ho% ao &e a $e *a$*%* to the

    ee char+ea&e.1<  

    (&) 12

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    S%&"ect to thee $*$tat$o, the a*o%t o $e co%rt ee

    recr$&e %er Sche%e 2 o the Co%rt-ee ct, 1