Court Fee in Nepal: Calculation, Rates & Exemptions Explained

Court Fee in Nepal: Rates, Exemptions, and Legal Procedures

A fee imposed upon a litigant to begin a lawsuit or start a legal dispute or resolution case is called a court fee. According to the explanation given in Section 63(2) of Civil Procedure Code, 2017 the term "court fee" means the fee to be charged in filing a plaint or memorandum of appeal, or petition for the review or revision of a case, and also includes the fee payable by anyone who files counter-claim. A court fee is charged when filing any plaint, memorandum of appeal, or counterclaim to the court. In case of review or revision of a case, the court fee will be charged only if a review or revision order is made on a petition for the review or revision.

According to the provision of the Civil Procedure Code, proceeding cannot take place on any plaint, memorandum of appeal or counterclaim or petition for the review or revision of any case without payment of the court fee chargeable according to law. The plaints, memorandum of appeal, counter-claim or petition registered without payment of court fee shall be dismissed according to sec 64(2) of Muluki Civil Procedure Code. However, court fee shall not be charged in respect of the following cases:

A case in which the Government of Nepal or Provincial Government is a plaintiff,
A case within the jurisdiction of the Local Level,
A case which involves the use of a public or government property, or
A case to be proceeded with by the body specified by the Government of Nepal, by a notification in the Nepal Gazette.

There is also flexible provision in the payment of court fee for a person who is unable to pay court fee while filing the plaint or petition according to Section 65 of Muluki Civil Procedure Code, 2074. Such a person has to make a petition to the court that he/she is not able to pay the court fee at the time of filing of the plaint, petition, or memorandum of appeal. The court examines the petition and if it finds it reasonable, the judge executes a memo with the reasons and orders to proceed with the case, subject to the collection of the whole or part of the court fee subsequently. There are two processes for making such an order:

A party of a case may make a petition stating that he/she is not able to pay the court fee fully or partly because of his or her weak financial condition. If such petition is filed by a party, the court examines such petition and makes the necessary order.
A party may make such a petition accompanying the recommendation of the concerned Local Level that a person required to pay the court fees is not able to pay the court fees because that person has no property except the property subject to the case.

The court examines the petition and may make an order for proceeding of the case subject to collection of the court fee subsequently if the petition appears reasonable. If the judge makes such an order, the concerned employee shall maintain the record of how much of the court fee has been collected and how much of it is to be recovered subsequently.

The plaintiff has to specify the value or claimed amount of a property in terms of money which one has claimed or demanded to release from other's claim If there is a claim that anyone has omitted to perform anything which one was bound to perform or has done or is about to do anything which one is bound not to perform, such claim also has to be clearly stated according to section 66 of Muluki Civil Procedure Code. For payment of court fee, the value or claimed amount is fixed on the following basis ( Muluki Civil Procedure Code, 2074)

Fee fixed by the land revenue office for registration.
The value, if any, is fixed for the purpose of tax.
Locally prevailing value

Section 68 has provided the basis of fixing court fee. If the claim is made in cash amount, the court fee is determined according to the amount in claim. If there exists any deed setting out the amount or price of the property, like the deed of mortgage, loan transaction, the court fee is determined according to that amount. In other cases, the rate of court fee is fixed according to the market value of the property. The market value is set according to the value fixed by the authority, concerned association, or market. The value of the property shall be set according to the value of the previous day of the day on which the case is filed. If the market value of the property is not set, the amount claimed by the plaintiff shall be the basis of fixing the court fee.

Rate of Court fee

The court fee shall be charged at the following rate, according to the value or claimed amount of the claim for entitlement or claim for release from another's claim:

Five hundred rupees, for up to the first twenty-five thousand rupees,
By five percent, for up to the second twenty-five thousand rupees, that does not exceed fifty thousand rupees,
By three-point five percent, for up to the third fifty thousand rupees, that does not exceed one hundred thousand rupees,
By two percent, for up to the fourth four hundred thousand rupees, that does not exceed five hundred thousand rupees,
By one-point five percent, for up to the fifth two million rupees, that does not exceed two million five hundred thousand rupees,
By one percent, for any amount above it, not exceeding two million five hundred thousand rupees.

Registration or transmission of a land or voidance of such registration or transmission,
Claim for invoice and receipt,
Claim for the invalidation of a deed, deed of the time bound repayment (Bhakhapatra), letter of guarantee, bond, receipt etc.,
Claim for the eviction of tenant from a house or land or claim against such eviction,
Claim on obstruction with the construction of a dam, canal or ditch or denial for carrying of water through such dam, canal or ditch or on the use of water in breach of priority order,
Claim for opening or closing any exit, window or door or for making, adding or closing any window, door or veranda,
Claim for the issuance of an injunction or mandatory order to refrain, or cause to be refrained, from doing any act or to cause any act to be done or for the vacation of such an order,
Determination of full competency, quasi-competency or incompetency of any person,
Divorce,
Settlement of relationship,
Claim for the judicial declaration of the death of a person or voidance of a judicial declaration or claim for amendment thereto,
Claim for commencement or non-commencement of bankruptcy proceeding
Appointment or voidance of appointment of a trustee,
Appointment or voidance of appointment of a guardian,
Appointment or voidance of appointment of a curator,
Claim for usufruct or voidance thereof, provided that the court fee shall be charged according to the value, if any, specified.
Claim for servitude or voidance thereof

Court fee of lump sum One Thousand Rupees is charged in claim for the ascertainment or provision of a partition share in the property subject to partition and voidance of a deed or document. In another contract where the amount is not specified the court fee of a lump sum of Two Thousand Five Hundred Rupees is charged.

Fee for appeal and review

While filing an appeal, additional court fee shall be charged by fifteen percent of the court fee chargeable for filing the plaint according to the Muluki civil procedure code, 2074 Section 73. In petition of review or revision of a case, the court fee shall be charged only after the order of review or revision is made. The court fee for the petition will be an additional ten percent of the court fee chargeable for filing the plaint. However, the court fee is charged only to the extent to which the petition is made for the review or revision upon being unsatisfied with the judgment as mentioned by Muluki Civil Procedure Code, 2074 Section 74. The court fee will be forfeited if the plaintiff or appellant loses the case, (Muluki Civil Procedure Code Section 81)

In executing the deed of compromise, the court shall collect only twenty-five percent court fees and return the remaining amount to the parties, if the deed is executed before the examination of evidence. If the compromise has been executed after examination of evidence, the court shall collect half of the court fee. The court fee shall be recovered to the winning party in accordance with the judgment as mentioned in Muluki Civil Procedure Code, 2074 Section 83.

Other Charges

Charge has to be paid in the document submitted in the court for registration. Such charge has to be paid in cash or the bank voucher depositing the amount in the bank specified by the Court. The charge has to be paid at the following rate:

Rs. 200/ for complaint, plaint or statement of defense

Rs. 300 for filing the memorandum of appeal

Rs. 500/ for filing writ petition except the writ of habeas corpus

Rs. 500/ for authentication of authorized attorney given to initiate a case and Rs. 5000/ to settle property issues such as transfer of property.

Conclusion

In conclusion, court fees play a crucial role in initiating legal proceedings, ensuring that litigants contribute to the judicial process while maintaining financial accessibility for those in need. The Civil Procedure Code, 2017, outlines clear provisions regarding court fees, including their applicability in filing plaints, appeals, counterclaims, and petitions for review or revision. However, exceptions exist for government-related cases and certain public interest matters. Additionally, the law provides flexibility for financially disadvantaged individuals through a petition-based exemption process. The determination of court fees is based on factors such as the value of the claim, market rates, and official assessments. Different rates apply depending on the type and amount of claim, ensuring a structured and equitable fee system. Furthermore, additional charges apply for appeals, reviews, and document registrations. By maintaining a structured yet flexible court fee system, the legal framework seeks to balance accessibility to justice with the financial sustainability of judicial proceedings.