Legal Benefit Fund Payable on Appeals Before Kerala Co-operative Tribunal: Kerala High Court Ruling

Case Reference

Johnson Scaria Vs Angamally Service Co-Operative Bank Ltd.
Court: Kerala High Court
Statute Involved: Kerala Co-operative Societies Act, 1969 | Kerala Court Fees and Suits Valuation Act, 1959

A batch of writ petitions was placed before the Kerala High Court raising a common question: whether persons who had filed appeals and revision petitions before the Kerala Co-operative Tribunal under the Kerala Co-operative Societies Act, 1969 were obligated to pay the Legal Benefit Fund levy as an additional court fee.

The assessees who approached the Court sought to resist payment of this levy, contending that such an imposition was not maintainable in the context of proceedings before the Tribunal. The Court examined Section 76 of the Kerala Court Fees and Suits Valuation Act, 1959, which governs the Legal Benefit Fund, and found that the challenge raised was already settled by a binding precedent of a Division Bench of the same Court.

Statutory Framework: Section 76 of the Kerala Court Fees and Suits Valuation Act, 1959

The Kerala High Court undertook a careful reading of Section 76 of the Kerala Court Fees and Suits Valuation Act, 1959, which forms the legislative backbone of the Legal Benefit Fund. The relevant provisions operate as follows:

Section 76(1) – Power to Levy Additional Court Fee

Section 76(1) empowers the State Government to impose an additional court fee on appeals or revisions filed before tribunals or appellate authorities other than civil and criminal courts. The rate is prescribed as:

  • Not exceeding 1% of the amount involved, in disputes capable of monetary valuation
  • Not exceeding Rs. 100 per appeal or revision, in disputes incapable of valuation

Under Section 76(2), a Legal Benefit Fund is constituted. The following amounts are credited to this Fund:

  • Proceeds of the additional court fee collected under Section 76(1)
  • 50% of the court fee levied and collected on mukhtarnama or vakalathnama under Article 16 of Schedule II of the Act

Section 76(3) – Application of the Fund

Section 76(3) mandates that the Fund shall be applied and utilised for:

  • Providing efficient legal services to the people of the State
  • Extending social security measures to the legal profession

Section 76(4) – Rule-Making Power

Section 76(4) authorises the State Government to frame rules for making legal services more efficient and for providing social security measures to the legal profession.