(1) When any suit in a Court or any proceeding instituted by presenting a petition to a Court is settled by agreement of parties before any evidence is recorded, or any appeal or cross objection is settled by agreement of parties before it is called on for effective hearing by the Court, half the amount of the fee paid by the plaintiff, petitioner, appellant, or respondent on the plaint, petition, appeal or cross objection, as the case may be, shall be repaid to him by the Court:
Provided that, no such fee shall be repaid if the amount of fee paid does not exceed one hundred rupees or the claim for repayment is not made within one year from the date on which the suit, proceeding, appeal or cross objection was settled by agreement.
(2) The Government may, from time to time, by order, provide for repayment to the plaintiffs, petitioners, complainants under section 138 of the Negotiable Instruments Act, 1881 (Act No. 26 of 1881) appellants or respondents of any part of the fee paid by them on plaints, petitions, complaints appeals or cross objections, in suits, complaints under section 138 of the Negotiable Instruments Act, 1881 (Act No. 26 of 1881), proceedings or appeals disposed of under such circumstances ---27--- and subject to such conditions as may be specified in the order.
Explanation.— For the purpose of this section, effective hearing shall exclude the dates when the appeal is merely adjourned without being heard or argued.