Madras High Court Comes Down Heavily on State Govt For Fixing Rs 10 Lakh Ceiling For Govt Advocates' Fees

The Madras High Court has recently slammed the Tamil Nadu Government for imposing a set structure for the payment of fees of law officers in arbitration matters and in civil suits.

Justice CV Karthikeyan said that he was not hesitant to hold that the two government orders (GOs) passed in May 2018 and July 2019 respectively that fixed Rs 10 lakh as the upper limit for fees to be paid to lawyers were an "insult to the legal profession."

He said, "A reading of the G.O.Ms. No. 339 gives the impression that the Government has reduced a legal professional wedded to the nuances of law to a contract worker. That cannot be done and should not be done".

"Determining a ceiling of Rs10 lakh for appearances in arbitration matters or in civil suits defies logic. The GO is extremely irrational. It is not known why that amount was determined. It is not known on what basis that amount was fixed as being just and equitable. It is just another amount fixed by the Executive. It cannot be thrust on a professional," the judge observed.

He further underscored that the Government must come forward to appreciate the effective work done by a professional in upholding the letter and spirit of the policies of the Government.

"The value of an advocate representing the Government is immeasurable. It may be a small case, it may be a big case, still the Government has to be protected. Even if a common citizen comes seeking a legal heirship certificate and if the law officer is not able to justify either grant or denial of legal heirship certificate, it is ultimately the image of the legislature which is effected. That dignity and sanctity of the Government is in the hands of its law officers. These are facts which on the Executive or an Bureaucrat would never ever understand", the judge emphasised.

While observing thus, Justice Karthikeyan quashed the two GOs and directed the government to consider the bills raised by the petitioner.

Court was dealing with the petitions filed by former Additional Advocate General and Senior Counsel V Ayyadurai regarding settlement of his pending fees and for passing appropriate orders within 12 weeks.

He had claimed that the Tamil Nadu government had not settled his bills in full for having represented the government in various arbitration proceedings involving high stakes. Ayyadurai had raised invoices worth over ₹3.94 crore for such service in the arbitration proceedings.

In the counter affidavit to the pleas, the state government had stated that the invoices raised by Ayyadurai were extremely exorbitant, and while citing the two abovementioned government orders, it contended that Ayyadurai had to abide by the terms of the two GOs and that he could not claim any additional privilege.

Opposing the contention raised, Ayyadurai argued that his fee was reasonable and in fact it was in consonance with the Advocates Act.

Court found strength in the arguments put forth by Ayyadurai. Court said that the concerned GOs defied logic and had failed to account for the efforts law officers put in to defend the government and its policies before courts of law.

Case Title: V.Ayyadurai v. State of Tamil Nadu and Others