Court-fees Act: UT penalty rules notified, appeals in 30 days

The Ministry of Law and Justice has notified rules for adjudicating penalties and hearing appeals under the Court-fees Act, 1870, in Union territories. Notification G.S.R. 900(E), dated 16 October 2026, prescribes complaint forms, hearing safeguards and a 30-day appeal window. The rules take effect on publication in the Official Gazette.^[1]

Delhi has separately designated its revenue district magistrates and deputy commissioners to decide these cases within their respective jurisdictions. An order dated 16 October 2026 names the Divisional Commissioner as the appellate authority, responsible for hearing challenges to their orders. That order also takes effect on Gazette publication.^[2]

The Union territories Court fees (Adjudication of Penalties and Appeal) Rules, 2026, establish an administrative process for complaints about breaches of rules made under Section 34. They deal with how violations are examined and penalties challenged, rather than prescribing a new schedule of court fees.^[1]

The statutory change behind the rules

The October notification follows amendments to the Court-fees Act under the Jan Vishwas (Amendment of Provisions) Act, 2026. According to SCC Times, the amendments relating to court fees took effect on 8 July 2026, following a Ministry of Law and Justice announcement on 23 June 2026. The rules are therefore a subsequent procedural development, not the commencement of those statutory amendments.^[3]

SCC Times reported that the amended Section 34(3) distinguishes fraudulent conduct from non-fraudulent breaches of stamp-sale rules. Non-fraudulent violations attract a monetary penalty of up to Rs 10,000, while fraudulent conduct remains subject to criminal punishment. The reform does not remove criminal liability for every stamp-related violation.^[3]

The new rules identify the adjudicating officer as a Deputy Commissioner, Deputy Collector or equivalent-rank officer appointed under Section 34A. Adjudication means examining the evidence and deciding whether a penalty is warranted. Section 34B provides the appeal mechanism through a designated appellate authority.^[1]

Complaints, notices and the opportunity to respond

A revenue officer, licensed vendor or individual with knowledge of a breach of rules made under Section 34 may file a complaint. Rule 3 permits submission electronically, by speed post or by hand, using the prescribed Form I.^[1]

The form requires details of the alleged violation, the incident’s date and place, the person concerned, supporting documents and the relief sought. It also requires a declaration that the stated facts are true to the complainant’s knowledge and belief. Filing a complaint begins the process; it does not establish that a violation occurred.^[1]

Under Rule 4, the adjudicating officer must issue a show-cause notice within 30 days of receiving the complaint. This is a notice asking the person concerned to explain why proceedings should not begin. The response period specified in it cannot be shorter than 30 days from service.^[1]

After considering any reply, the officer may issue a hearing notice within 15 days of receiving it, if a hearing is considered necessary. The person may appear personally, through an authorised representative, or make additional submissions required for deciding the matter.^[1]

No order may be passed without giving the parties a reasonable opportunity to be heard. If a person served with a hearing notice neither appears nor makes submissions, the officer may proceed ex parte, meaning in that person’s absence, after recording reasons in writing. The officer may also summon people familiar with the facts where further evidence or documents are needed.^[1]

Notices and orders may be served personally, electronically or by speed post. If those methods cannot be used, service may be made by affixing the notice at the person’s last known residence or business premises.^[1]

Penalty decisions must give reasons

A penalty requires a written order based on the officer’s satisfaction, after considering the material on record, that a contravention occurred. The order must identify the violation, the rule provisions breached, the reasons for the findings and the penalty amount. Copies must be supplied to the parties free of charge.^[1]

Rule 6 allows the officer to consider the duration of the violation, the number of vendors affected, public loss or hardship, repeated violations and disproportionate or unfair gains. Other relevant factors affecting licensed vendors’ interests may also be considered.^[1]

The officer must endeavour to complete proceedings within three months of issuing the initial notice. That wording sets a completion target; it differs from the rule requiring appeals to be decided within 60 days of filing.^[1]

Payment is due within the period specified in the penalty order, electronically or through another method stated in it. Unpaid penalties are recoverable as arrears of land revenue, meaning through the revenue-recovery mechanism specified by the law.^[1]

Appeals can change the penalty in either direction

A person aggrieved by an adjudicating officer’s order may appeal using Form 3 within 30 days of receiving the order. A late appeal may be entertained if the appellate authority is satisfied that sufficient cause prevented timely filing.^[1]

An appeal may be filed by the appellant, an authorised representative or a duly authorised advocate, and submitted by speed post or electronically. For postal appeals, the filing date is the date the appellate authority’s office receives the appeal, not the date of dispatch.^[1]

If scrutiny reveals defects, the authority must notify the appellant and allow 15 days for correction. Failure to correct them can lead to refusal to admit the appeal, with reasons recorded in writing and the decision communicated to the appellant.^[1]

Once admitted, a copy goes to the respondent, who may reply within 15 days of receiving notice. The appellate authority may call for the adjudication records and must give the parties a reasonable opportunity to be heard before deciding the appeal.^[1]

The authority can confirm or modify the order, return the matter for fresh consideration, or reduce, increase or cancel the penalty. Any penalty remains subject to the Act’s maximum. The appellate decision must be written, reasoned, dated and signed, with copies sent to the appellant, respondent and adjudicating officer.^[1]

References

1. Ministry of Law and Justice, Department of Justice. Notification G.S.R. 900(E): Union territories Court fees (Adjudication of Penalties and Appeal) Rules, 2026. 16 October 2026.
2. Office of the Divisional Commissioner, Delhi, Stamps and Registration Branch. Appointment of Adjudicating Officers and Appellate Authority under Sections 34A and 34B of the Court-fees Act, 1870, as amended. 16 October 2026.
3. SCC Times. Court Fees Act Reforms Under Jan Vishwas Act 2026 Explained.