In Brief
A property dispute was referred to mediation under Section 89 of the CPC and amicably settled. The appellant sought full refund of court fees under Section 16 of the Central Court Fees Act, 1870, but received only 50% under the Maharashtra Court Fees Act, 1959. The Supreme Court held that court fees, being governed by Entry 3 of List II (State subject), are properly regulated by state law. The distinction between Lok Adalat (governed by the Central Legal Services Authorities Act with full refund) and mediation (governed by state law with partial refund) is valid. However, in the peculiar facts of this case—amicable settlement and modest fee amount—the Court exercised exceptional jurisdiction to grant full refund to the appellant, while noting this is not binding precedent.
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