Supreme Court to Examine Uncapped Court Fees in Kerala Fee Hike Case

The Supreme Court on Friday, October 16, agreed to examine whether court fees charged as a percentage of a claim’s value, with no upper limit, are legally valid. A bench of Chief Justice of India Surya Kant and Justice Joymalya Bagchi issued notice on a plea by the Kerala High Court Advocates’ Association (KHCAA) challenging the Kerala government’s 2025 court fee hike, confining the notice to that question.

What Changed in Kerala

The Kerala Finance Act, 2025 amended the Kerala Court Fees and Suits Valuation Act, 1959. The KHCAA says the increases range from about 400% to nearly 9,900% in some categories. According to the petition, fees for writ petitions rose from Rs 100 to Rs 500, and for anticipatory bail applications from Rs 10 to Rs 500.

The Kerala High Court dismissed the association’s public interest petition in October 2025, citing inflation and rising judicial costs. The KHCAA then approached the Supreme Court, arguing that the High Court did not consider whether uncapped ad valorem fees amount to a tax.

What the Bench Said

Senior Advocate K Parameshwar, appearing for the association, also questioned the exemption that Section 73A of the Act gives the state government from paying court fees. On that point, the Chief Justice remarked that “the right hand will be paying the left hand”.

The bench indicated that periodic revision of court fees is needed and that it may consider directions for all states. Justice Bagchi observed that judicial time in commercial disputes “must come at a price”. No stay on the revised fees was reported. Bar and Bench reported that the matter will be heard next on November 2.

Why It Matters for Ordinary Litigants

Court fees are often the first cost a citizen faces when seeking justice. Uncapped fees can weigh heavily on people filing compensation claims, including motor accident and death cases, where the amount claimed can be large but the family’s means are limited.

A ruling on the limited question could influence how other states design their own fee structures. IPB has covered other recent developments at the court, including the Collegium’s recommendations for three High Courts.

For now, the revised fees remain in force in Kerala while the court hears the state’s response. The final outcome may set an important marker on the line between a fee for a service and a tax. More court news is on our Daily Updates page.

Based on reporting by LiveLaw and Bar and Bench.