Rs 10 court fee for Rs 2.5 crore claim: Madras High Court pulls up MD for ‘mocking’ justice

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The Madras High Court has pulled up a construction company’s managing director for “making a mockery of the entire judicial system”. The company paid just Rs 10 in court fee when it filed a case to recover around Rs 2.5 crore from another construction company and took nearly three years to pay the remaining fee of about Rs 2.5 lakh.The court said this amounted to an “abuse of the legal process” and had kept the other company tied up in litigation for seven years. Justices N Sathish Kumar and G K Muthukumaar dismissed his appeals and imposed costs of Rs 50,000, payable to the other company within six weeks.“By paying a mere court fee of Rs 10 for a money claim of around Rs 2.5 crores and thereafter representing the plaint (submission) and paying the deficit court fees after three long years, the appellant (construction company) has made a mockery of the entire judicial system and abused the legal process, warranting the imposition of heavy costs,” the court said on October 14.Case filed first in 2019The dispute began when a construction company filed a case in 2019 seeking to recover around Rs 2.5 crore from another construction company over unpaid bills under a contract between them. It paid only Rs 10 in court fee. The registry returned the case papers and asked the company to pay the remaining fee, which was about Rs 2.5 lakh.Also Read | Madras High Court bans protests that ‘abuse, defame’ sitting judges, threaten judiciaryThe company later filed two applications seeking to explain delays of 1,161 days in re-submitting the case papers and 1,181 days in paying the remaining court fee. The court’s Master dismissed both applications on December 2, 2022.The company then approached a single-judge bench in 2023, challenging the Master’s decision. The single judge dismissed both applications on September 3, 2024. The company’s managing director then filed two appeals before the division bench. Justices N Sathish Kumar and G K Muthukumaar said the Covid-19 pandemic could be a valid reason for delay, but the company still had to explain the delay satisfactorily.The company claimed that the delay in re-submitting the case papers and paying the remaining court fee was caused by the Covid-19 pandemic and was neither wilful nor deliberate. Its counsel, advocate Hemalatha, argued that the company’s claim against the other construction company was genuine and arose from commercial transactions between them.Story continues below this ad‘No explanation for delay’The court said the Covid-19 pandemic could be a valid reason for delay, but the company still had to explain the delay satisfactorily. It found that the delay in this case was “huge”.The court also questioned why the company had paid only Rs 10 in court fee when it was seeking to recover around Rs 2.5 crore.“We are shocked to find that the court fee initially paid by affixture on the plaint at the time of presentation was only Rs 10,” it added.The court pointed out that this “callous and lethargic attitude” of the construction company is “highly deplorable”. “It amounts to harassing the respondents (other construction company) under a prolonged threat of legal proceedings. Such conduct amounts to an abuse of the process of law and should not be encouraged by the Courts,” it held.Story continues below this adThe court said the company’s careless approach had prolonged the case for seven years, while it had paid only Rs 10 in court fee for a claim of around Rs 2.5 crore. It said this was a case where “costs” should be imposed, and that the amount should be “realistic”.Also Read | Quoting Spider-Man, Bombay High Court raps Maharashtra on Model College appointmentsThe court imposed costs of Rs 25,000 in each appeal, taking the total to Rs 50,000. It directed the company to pay the amount to the other party within six weeks.What is court fee, and how is it calculated?Court fee is the amount paid by litigants to file a case before a court. The legal framework for court fees is primarily provided under the Court Fees Act, 1870, a central legislation. However, each state or Union Territory may have its own court-fee law, amendments, schedules and rates.The court fee may vary depending on the nature of the case and the relief claimed. In some cases, it is calculated based on the value of the subject matter or the amount claimed.Story continues below this adIf a party fails to pay the required court fee, the court may direct it to pay the deficit amount.