Allowed

Pegasus Assets Reconstruction Pvt. Ltd. v. Ethecal Trade Partners an Ors.

DRT25 May 2026OA/481/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal II, Delhi allowed withdrawal of an appeal (OA 48L/2023) due to an amicable settlement between parties. The court refused a refund of court fees, citing a Supreme Court precedent that refunds are only permissible if settlement occurs via arbitration, conciliation, or court-referred mediation, not purely out-of-court settlements.

What did the court decide?

Withdrawal of OA 48L/2023 allowed; prayer for refund of court fees declined; original documents to be returned.

Pegasus Assets Reconstruction Pvt. Ltd. versus Ethecal… — Writ and Judicial Review | DRT (2026)

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Debts Recovela Tribunal-Il, Delhi

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oAl48Ll2023

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PEGASUS ASSETS RECONSTRUCTION PW LTD Vs ETHECALTRADE PARTNERS AN ORS

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25.0s.2026

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Item no. 68

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Present: Ms. Usha Singh, counsel for applicant FI. Mr. Vivek Munshi, counsel for defendant no.1 to 3. None for defendant no.4.

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Matter is taken through Video Conferencing/ hybrid Mode.

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IA no.1007l2026 has been filed by the applicant FI for withdrawal of the present OA.

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The Ld. Counsel for the applicant FI submits that the present mafter has been amicably settled between the parties hereby and nothing remains for adjudication. She further submits that she wishes to withdraw the present OA and return of original documents.

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. . tii'

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The Ld. Counsel of the applicant FI has also requested for refund of the court fees. It is submitted that the matter has been settled and therefore, the court fees may be refunded .r, gil provisions contained in the rules. In this regard the Hon'ble Supreme Court has^passed the order in SLP(c) No(s).723/2023 dated 28.01.2025 titld as Jage Ram Vs Ved Kaur A OE. T,l:g Hon'ble Supreme Couft has considered the matter and has ireld that:

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Para 6- The refund of court fes is prmisible only i[, the matter is refend to Arbitration, Conciliatio4^'itY judicial settlemenl including through Lok Adalat sy ,'i.:-:tl mdiation for settlement and the as is decided in i:t:r terms of such a settlement and not otherwise. .,, ,

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Para 7- In the ca* at hand, the setflement in terms of^.- t;".,.,_, whrth the scond appeal was dqidd by the ,,9h . ,r,,. fi '

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authorities/fora rather Court is not on reference it was an to amiable any of the settlementafuve ::'rr.: ':: ,j . lr.. n, r :. . .:,, a out of the court.

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Para B- Accordingly, we are of the opinion that the petitioner is not entitled to refund of the court fees and the High Court has not committed any eror or illegality in refusing such a prayer."

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In view of the above, it is clear that if the matter has been settled out of the court without any reference from the court or Tribunal, the court fees cannot be refunded. Therefore, the prayer of the applicant FI for refund of court fees is hereby declined.

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In view of amicable settlement, IA no.l007 12026 is allowed. OA 48L12O23 is dismissed as withdrawn. Registry is directed to return the original documents after keeping the ceftified copies on records. All the pending l$fi stand disposed of.

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File be consigned to record room.

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(susHrl rutnn RASTo. cr) PRESIDING OFFICER; DRT-II, De[l'Ii

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Pegasus Assets Reconstruction Pvt. Ltd. v. Ethecal Trade Partners an Ors.

Case brief

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Pegasus Assets Reconstruction Pvt. Ltd. v. Ethecal Trade Partners an Ors.

Case brief

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