Court Fees refund : Mediation law: Alternative Disputes redressal resolution: Section 89 CPC

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The issue is that whether parties who settled their disputes amicably out of court can be differently treated and be refused for the claim of court fees whereas the persons who settle their disputes with the intervention of the court are entitled to a refund of the court fees.
correct interpretation
Differential treatment between two similarly situated persons, would amount to a violation of Article 14 of the Constitution of India, 1950.
The interpretation of a statute must be moulded in such a manner so as to achieve the true purpose of the enactment and to ensure that no difficulty or injustice is rendered due to such ambiguity over the interpretation of a statute. The provision of the court fees Act on refund of court fees on settlement of cases on the intervention of the court is to give a reward to parties who have chosen to withdraw their litigations in favour of a more conciliatory dispute. The object and purpose of promoting settlement by the active involvement of the court under Section 89 of the Code of Civil Procedure are to facilitate private settlements and enable lightening of the overcrowded docket of the Indian judiciary.
Parties who settle disputes amongst themselves, without the need for a court to arrange for a third-party institution, are more deserving of the benefit arising out of any provision of the court fees Act.
Any other interpretation of the stature will yield an absurd and unjust outcome
However, in situations where parties have after a long-drawn trial, after multiple frivolous litigations, may be refused the benefit of refund of court fees on the ground of previous conduct of the parties, principles of equity under the relevant rules pertaining to court fees
supreme court ruling
Details of the case- The HC of Judicature at Madras, Rep. by its Registrar General v. M.C. Subramaniam & Ors. [SLP (Civil) Nos. 3063-3064 of 2021 decided on February 17, 2021]


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