whenever by agreement of parties,-
(a) any suit is dismissed as settled out of Court before any evidence has been recorded on the merits of claim; or
(b) any suit is compromised ending in a compromise decree before any evidence has been recorded on the merits of the claim; or
(c) any appeal is disposed of before the commencement of hearing of such appeal;
half the amount of all fees paid in respect of the claim or claims in the suit or appeal shall be ordered by the court to be refunded to the parties by whom the same have been respectively paid.
Explanation: The expression "merits of the claim" shall have the meaning assigned to it in Section II.