Madras HC Seeks Explanation from Chengalpattu CJM Over Advocate Commissioner Fees

The Madras High Court has directed the Chengalpattu Chief Judicial Magistrate to explain the basis on which he fixed exorbitant fees for advocate commissioners appointed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.

A first bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G Arul Murugan issued the directive while hearing a petition filed by AU Small Finance Bank Limited against the judicial officer. The financial institution alleged that the Chengalpattu Chief Judicial Magistrate had been fixing a uniform fee of Rs 80,000 for advocate commissioners, even in matters where the total claim amount stood at just Rs 2.21 lakh.

During the hearing on Wednesday, the petitioner bank submitted a list of at least seven cases where the magistrate had uniformly ordered the payment of Rs 80,000 as advocate commissioner fees in an arbitrary manner. The bank contended that such fee determinations were made without considering the scale or value of the underlying claims.

The bench observed that five additional cases had also been brought to its notice challenging the high amounts fixed towards advocate commissioner remuneration. Counsel appearing before the bench pointed out that despite previous directions issued by the High Court on June 5, the magistrate continued to pass similar fee orders invariably across all cases.

Taking note of the submissions, the bench stated that it deemed it appropriate to call for an explanation from the magistrate regarding the basis on which such fees were determined across the board. The court also ordered the magistrate to provide the complete list of names of all advocate commissioners appointed by him in these proceedings.

The High Court instructed the Registrar General to seek the required explanation from the magistrate within 10 days. The matter has been adjourned for further hearing to September 8.