Sainik Industries Pvt. Ltd. Vs Indian Sugar Manufacturing Company Limited (Delhi High Court)
Delhi High Court Allows Court Fee Refund Because Claim Was Settled Through Approved Insolvency Resolution Plan; Delhi HC Orders Refund of Entire Court Fee Because Insolvency Resolution Effectively Settled Recovery Claims; Court Fee Refund Allowed Because Settlement Need Not Arise Only Through Court-Referred Mediation.
The case concerned an application filed by the plaintiff seeking withdrawal of a recovery suit and refund of court fees. The plaintiff had originally instituted a suit for recovery of ₹19,55,30,723 along with pendente lite and future interest at 15% per annum.
According to the plaintiff, the parties entered into an agreement dated 28 July 2016 for the supply of 5,200 MT of sugar for a total consideration of ₹16,71,80,000. The defendant also issued a confirmation letter regarding the supply. The plaintiff paid an advance amount of ₹10,00,000, and the defendant supplied 1,942.9 MT of sugar valued at ₹6,24,64,235. The plaintiff alleged that despite retaining the balance advance amount of ₹3,75,35,765, the defendant failed to supply the remaining sugar within the stipulated period. Consequently, the plaintiff filed the recovery suit.
During the proceedings on 18 May 2026, the plaintiff informed the Court that it wished to withdraw the suit because insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 had been initiated against the defendant. The plaintiff had submitted its claim before the Insolvency Resolution Professional (IRP). A resolution plan had been placed before the National Company Law Tribunal (NCLT), and the plaintiff had accepted the amount allocated to it under that plan. The matter was thereafter adjourned for consideration of whether court fees could be refunded.
