SC: Fine imposed on litigants to be deposited in a Special Fund. Is this not indirect taxing by Courts?

When parties are delaying cases by not taking up necessary steps, courts often impose fines. When some PIL is filed without any seriousness, just to seek publicity or to harass someone or to benefit someone, the courts may impose fine on parties. Sometimes fine from Rs.1000, may go up to Rs.1 lakh

If a party do not pay fine or if he is poor, the consequences may follow which may include imprisonment or recovery as land revenue dues.

In 2010 (8) Scale 450, Supreme Court observed in para 5 about setting up a Special Purpose Vehicle. (Fund) in which such fine amount will be deposited.

The amount gathered will be utilized for Judicial Infrastructure.
My own knowledge is very limited about legal powers of courts to impose fine and use fine for judicial purposes. To my mind this amounts taxing by courts. But anyway, my view can be wrong as I have not examined earlier decisions on issue.

Haresh Raichura

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