The Law Commission of India led by Chairman P V Reddy has proposed a substantial hike of up to Rs 1 lakh as court fees on high-value Supreme Court litigation in order to increase the court fees paid by companies and corporates.

The Law Commission proposal that is based on the recommendations of the Law Ministry’s department of justice said:

“The Commission has taken the view that it would not be legally permissible nor practicable to levy higher court-fee only on the companies / corporates. The solution offered by the Commission is to increase ad valorem court-fee payable in respect of the appeals (Civil) to the Supreme Court subject to a maximum of Rs. one lakh or so. Presently, the maximum stands at Rs. 2,000/- and this maximum fee was prescribed by the Supreme Court Rules of 1950, retained in the rules of 1966 and it remains unchanged till now.

“Hence, the Commission felt that there is a need to increase the maximum fee so that the high value appeals which are mainly filed by the Companies, Firms, Trusts and AOPs under special Acts etc. would attract higher fee. The Commission has also suggested upward revision of minimum fee of Rs. 250/- as well as the fixed court fee which again remains the same since the inception of the Supreme Court.

“At the same time it would be reasonable to charge only fixed court- fee (as enhanced) in respect of appeals that arise from High Court’s Judgments in Civil matters where court fee would have been already paid on ad valorem basis both at the trial and appellate stage. Finally, the Commission has suggested that instead of Parliament enacting any legislation straightway superseding the rules framed by the Supreme Court, it would be proper to address the Supreme Court for revision of court-fees as it has remained static for nearly 60 years by now. The Supreme Court may then constitute a Committee and go into the question of revision.”