Court fee is the fee prescribed by law that must be paid by a litigant when filing a plaint, appeal, application, or other document in a court of law. Under Indian law, court fees are governed by the Court Fees Act, 1870 (a central statute), with several states having enacted their own Court Fees Acts with modified schedules. Section 3 of the Act requires that fees be paid in the form of stamps, and Section 7 prescribes the computation of fees for different categories of suits.
Legal definition
The Court Fees Act, 1870 does not provide a standalone definition of "court fee" but prescribes the obligation and method of payment:
Section 3 — Fees payable for documents: The fees payable for the time being to the Government for the several documents mentioned in Schedule I and Schedule II shall be paid in the manner prescribed by the said Schedule.
Section 7 — Computation of fees payable in certain suits: The amount of fee payable under this Act in the suits next hereinafter mentioned shall be computed as follows:
(i) In suits for money, including suits for damages or compensation, or arrears of maintenance, of annuities, or of other sums payable periodically — according to the amount claimed.
Section 7 prescribes two primary methods of computing court fees: ad valorem (proportional to the value of the claim) for money suits and property suits, and fixed (flat amount) for certain categories like injunctions and declarations where the relief cannot be easily valued.
How courts have interpreted this term
State of Punjab v. Dev Brat Sharma [(2022) SCC OnLine SC 292]
The Supreme Court held that under Section 7(i) of the Court Fees Act, 1870, ad valorem court fees are payable on the amount claimed in a money suit for compensation and damages. The plaintiff does not have the liberty of stating a lower amount for court fee purposes — the fee must correspond to the actual claim. The Court clarified that the option of separate valuation for court fees is available only for the category of suits specified in clause (iv) of Section 7, such as suits for injunction or declaration.
Satheedevi v. Prasanna Kumar [(2010) 14 SCC 728]
The Supreme Court held that court fee must be computed on the basis of the relief claimed, not on the relief that the court may ultimately grant. If the court fee is deficient, the plaint is liable to rejection under Order VII Rule 11(c) CPC unless the deficiency is made good within the time granted by the court.
Types of court fees
- Ad valorem court fee: Computed as a percentage or slab amount based on the value of the claim. The higher the claim, the higher the fee. Applicable to money suits, suits for recovery of immovable property, suits for movable property, and similar valuation-based claims.
- Fixed court fee: A flat amount prescribed for categories of suits where the claim cannot be easily valued in monetary terms, such as suits for injunction, declaration, or specific performance. The amount varies by state and is specified in the relevant state Court Fees Act or schedule.
Why this matters
Court fees serve as a revenue source for the State and a filter against frivolous litigation. The requirement to pay court fees proportional to the claim ensures that litigants have a financial stake in the proceedings and discourages speculative or inflated claims. For many litigants, particularly in property disputes involving high-value properties, court fees represent a significant financial barrier to accessing the judicial system.
For practitioners, the correct computation of court fees is a threshold requirement. A plaint filed with insufficient court fees is liable to rejection under Order VII Rule 11(c) CPC. Courts typically give the plaintiff an opportunity to make good the deficiency within a specified period, but failure to do so results in rejection. Conversely, overpayment of court fees cannot be recovered after the suit is filed.
A practical consideration is that court fee computation varies significantly across states. While the Court Fees Act, 1870 is a central legislation, most states have enacted their own amendments or replacement Acts with different fee schedules. Practitioners must refer to the specific state legislation applicable to the court where the suit is being filed.
Related terms
Related concepts:
Related procedures:
Frequently asked questions
How is court fee calculated for a property suit?
For suits involving immovable property, court fees are typically computed ad valorem on the market value of the property. Different states prescribe different slabs — for example, some states charge a percentage of the property value up to a maximum cap. The plaintiff must state the value of the property in the plaint for jurisdictional and court fee purposes.
Can court fee be refunded if the suit is settled?
Some state Court Fees Acts provide for partial refund of court fees if the suit is settled or compromised at an early stage. The refund amount and conditions vary by state legislation and the stage at which the settlement occurs.
What happens if the court fee is insufficient?
Under Order VII Rule 11(c) CPC, if the plaint is written on insufficiently stamped paper, the court shall require the plaintiff to supply the requisite stamp within a fixed time. If the plaintiff fails to do so, the plaint shall be rejected. The rejection does not bar a fresh suit on the same cause of action with proper court fee.
This entry is part of the Veritect Indian Legal Glossary, a comprehensive reference of Indian legal terminology grounded in statutory text and judicial interpretation.
Last updated: 2026-03-27. Veritect provides this content for informational purposes and does not constitute legal advice.