Kerala State Budget 2024 Proposes to Increase Court Fees for Cases under NI Act

On February 5, 2024, Finance Minister K N Balagopal delivered the Budget 2024 for Kerala before the legislative assembly. The budget has proposed to increase the court fees for the cases registered under Negotiable Instruments ( NI ) Act, 1881.

The Judicial Court fee stamp rate in the state has remained stagnant for the past two decades, with no revisions in sight. Despite the announcement in the last budget speech about an intended enhancement of court fees, the implementation of this change has yet to materialise. The lack of revision in the Judicial Court fee stamp rate over such an extended period raises concerns about the adequacy of the current fee structure, said the Finance Minister in the speech.

A five-member committee under the chairmanship of Justice (Retd) V. K. Mohanan was appointed to give recommendations regarding the court fees. The committee has already submitted its interim report to the Government. Based on the report, the Budget 2024 has proposed the following changes in the court fees of cases under NI Act:

1. If the value of the dishonoured cheque is up to Rupees 10,000/-, then Rupees 250/- may be imposed as court fees.
2. If value exceeds Rs. 10,000, then five percent of the cheque amount may be imposed as Court Fees, subject to the condition that the maximum amount of Court Fees shall not exceed Rs. 3,00,000.
3. Amount of Court Fees proposed in cases of appeals filed by an accused before the Sessions Court shall be Rs.1,000, and for appeals filed by the complainant before the High Court, it shall be half of the Court Fees remitted in the trial court.
4. Revision petition filed by the complainant before High court, the Court Fees shall be 1/10th of the cheque amount, and in revision petitions filed by the accused against conviction, it shall be Rupees 1500/-.

Further, the current fee for petitions under Section 7(1)(c) of the Family Courts Act,1984 related to property is Rs. 50/-. The committee also recommended revising it as follows:

1. Rs. 200/- for disputes up to one lakh rupees, half percent of the claim amount for values between one lakh and five lakhs, and one percent for amounts exceeding five lakhs, capped at Rs. Two Lakhs. Similar court fees will apply to appeals filed before the High Court.

Embracing the committee’s recommendations led by a former Judge of the High Court, the Finance Minister K N Balagopal stated that the Kerala government plans to integrate appropriate amendments into The Kerala Court Fees and Suits Valuation Act, 1959. This initiative is anticipated to generate an additional revenue of Rs. Fifty Crores. Furthermore, the government is committed to reviewing court fees in various domains, guided by the recommendations outlined in the committee’s final report.

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