Plaintiff can get Court Fee refund after IBC Plan settlement
By COMMUNICATION COMMITTEE Posted On : July 13, 2026
The Delhi High Court in Sainik Industries Pvt. Ltd. v. Indian Sugar Manufacturing Company [CS(COMM) 474/2019] has held that a plaintiff who withdraws a civil suit after accepting dues under an approved resolution plan under the Insolvency and Bankruptcy Code, 2016 (IBC), is entitled to a full refund of court fees. The court further opines that any kind of settlement by which the Plaintiff agrees to bring quietus to the dispute comes within the four corners of Section 16 of the Court Fees Act and that one cannot distinguish cases on the mode of settlement. The court allowed withdrawal on the statement of the Plaintiff that the amount under the CIRP is towards full and final settlement of claims under the Suit and that the Plaintiff would not initiate any other proceedings on the basis of the cause of action on which this Suit was premised.
For more details please visit https://delhihighcourt.nic.in/app/showFileJudgment/SMP01062026SC4742019_175205.pdf