Disposal of appeal through compromise decree entitles appellant to refund of court fees under Section 16.

The appellant, Santosh Kumari, challenged a decree involving a commercial dispute with the respondent, Shashi Bala, regarding property no. C-234, Majlis Park, Adarsh Nagar, Delhi

A prior settlement dated 17.09.2015 had established that the appellant would sell her 50% undivided share in the property to the respondent for Rs. 95,00,000

During the pendency of the appeal, the parties entered into a new Memorandum of Settlement dated 17.04.2026

Under this agreement, the respondent agreed to pay a remaining balance of Rs. 60,00,000 by 31.07.2026 in full and final satisfaction of a decree amount of Rs. 1,16,90,964 in the original suit (CS (Comm.) 58613/2016)

The appellant undertook to deliver vacant possession and execute the sale deed upon receipt of the final payment

1. Whether the appeal could be disposed of in terms of the Memorandum of Settlement executed between the parties during the appellate proceedings

2. Whether the appellant is entitled to a refund of court fees following an amicable settlement

3. Whether the court should facilitate mediation for other pending inter-se disputes between the related parties

The Court applied the principle of judicial settlement of disputes through compromise.

It specifically relied upon Section 16 of the Court-Fees Act, 1870, as amended by the Court-Fees (Delhi Amendment) Act, 2026 (via notification dated 06.03.2026), which provides for the refund of court fees where parties reach a settlement

Additionally, the court utilized its discretionary power to refer parties to the Delhi High Court Mediation and Conciliation Centre to settle collateral litigations

The Court observed that the parties, with the assistance of counsel, reached an "amicable settlement" recorded in a formal memorandum

The Court scrutinized the terms, which included specific timelines for payment, consequences for default (contempt proceedings and treatment as a criminal trespasser), and the withdrawal of all pending litigation regarding the subject property

By incorporating these terms into the judicial order, the Court ensured the settlement carried the weight of a decree

Regarding the court fees, the Court found that since the resolution was achieved through settlement, the statutory criteria under the 2026 Amendment to the Court-Fees Act were met, necessitating a refund to the appellant

Finally, the Court reasoned that since the parties were related and embroiled in multiple litigations, a court-annexed mediation process would be the most effective platform to resolve remaining disputes

The Court ordered the refund of court fees to the appellant pursuant to Section 16 of the Court-Fees Act, 1870

The parties were further directed to approach the Delhi High Court Mediation and Conciliation Centre to explore settlements for other pending inter-se disputes

All pending applications were disposed of, and the subsequent hearing date of 21.07.2026 was cancelled