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Ujjwal Shah   20 June 2016

Dual payment of court-fees

Hello Experts,

I am a financial background person current working as a Finance & Accounts Manager. I work in a private limited company having turn-over of Rs. 6 Crores(approx) p.a. 
My company's Head office is in Wardha(Maharashtra). Whereas I work at companies branch in Kandla(Gujarat).

My company filled a Summary Suit under Order XXXVII of CPC for Recovery of Rs.15 Lacs from a Trader based in Kandla due to non-payment of bills submitted by our company towards services given to the Trader. The Suit was tried by Civil Court at Wardha in Maharashtra and decided ex-parte against the Respondent(Trader). Trader paid us Rs 8,50,000/- in 5 instalments on bi-monthly basis post-decree. Now Trader wants to write-off the balance citing poor financial conditions of his company. However, we know that Trader owns assets in Kandla worth Rs. 3-5 Crores. 
My Company issued him receipts pertaining to the payments made by the trader.
Our company also filed Part-Satisfaction Memo in the Dist.Court of Wardha in order to Certify the Payments received.
My company adjusted the payments made by Trader as per Gurpreet Singh Judgement of 2006 given by Supreme Court of India.  
Citation : Gurpreet Singh v. Union of India (2006) 8 SCC 457
Our company adjusted the part-payments received by applying the principle laid down in Gupreet Singh Case.
Company adjusted the payments recieved under heads amounting to Rs. 1,60,754/- (towards interest), Rs. 34,041 (towards Court-fees) & balance amount towards Principal Sum amounting to Rs. 6,55,205/-.

Now, our company has filed a Transfer Petition under Order 21 Rule 6 read with Section 40 of C.P.C. in the District Court of Wardha for transferring the Decree to  District Court of Bhuj for recovering the Balance Principal Sum of Rs. 8,44,795/- along with interest by attachment & sale of trader's property.

We are awaiting the receipt of Decree at District Court of Bhuj. We have engaged a lawyer at Bhuj to help us in filing Execution Petition for attachment & sale of immovable properties of trader at Bhuj for recovery of outstanding principal sum & interest. Furthermore, Lawyer at Bhuj is telling that the Company has to pay Court-fee at District Court of Bhuj in order to execute the Decree. When we communicated to our Lawyer that we have already adjusted court-fee against the Part-payment & also certified it, then does the need arise to pay court-fee again !
Lawyer at Bhuj said we have to pay court-fee again at Bhuj or else Civil Court at Bhuj will refuse to execute the Decree.

- If we pay Court-fee again at Bhuj, can we recover the same from the Trader(Debtor) again ?
- What if Debtor objects to repaying Court-fee again under the Decree ?
- How do the Court deals in such cases ?
- Will the Decree Holder(our Company) pay for Court-fees from own pocket in case  it is non-recoverable from the Debtor(Trader) ?
- Any case Law citation which deals with this controversy ?
- Can we recover Sale-Warrant Batta from the Purchaser of Debtor's property ?
- Can we re-adjust the Decree amount received till now from trader by application to Executing Court at Bhuj(Gujarat) ?
- Is there provision to seek refund of Court-fees paid at Wardha Court, since the Decree was not executable with the Jurisdiction of Wardha Court ?

Regards,
Ujjwal Shah.
Kandla (Bhuj District, Gujarat).



Learning

 1 Replies

P. Venu (Advocate)     20 June 2016

It is felt the company can afford professional consultation in the matter. Any how, no court fee is involved in filing an execution petition.


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