Advocate Commissioners’ fees in SARFAESI cases must be proportionate to the work involved, rules Madras High Court
Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan disapprove of the practice of magistrates fixing uniform fee for all advocate commissioners
The Madras High Court has ruled that fees charged to advocate commissioners handling SARFAESI cases must be in proportion to the work involved, rather than a uniform ₹80,000 fee as previously implemented by the Chengalpattu Chief Judicial Magistrate (CJM). The court emphasized that remuneration for such commissioners should strictly adhere to the doctrine of proportionality, taking into account factors such as the outstanding loan amount, value and location of the secured asset, the number of properties involved, and the travel distance required.
The CJM had explained that the current uniform fee was introduced to avoid disparity complaints, but the court disagreed, stating that a single flat fee applied uniformly to cases of vastly different financial stakes, property values, and complexities would be arbitrary. The court set aside the CJM's previous orders and directed him to fix advocate commissioners' fees proportionally based on the work required for each case.
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