Code of Civil
Procedure Section
1[35A.
Compensatory costs in respect of false or vexatious claims or defences.—(1) If
in any suit or other proceedings 2[including an execution proceeding
but 3[excluding an appeal or a revision] any party objects to the
claim or defence on the ground that the claim or defence or any part of it is,
as against the objector, false or vexatious to the knowledge of the party by
whom it has been put forward, and if thereafter, as against the objector, such
claim or defence is disallowed, abandoned or withdrawn in whole or in part, the
Court, 4[if it so thinks fit], may, after recording its reasons for
holding such claim or defence to be false or vexatious, make an order for the
payment to the object or by the party by whom such claim or defence has been put
forward, of cost by way of compensation.
5[(2)
No Court shall make any such order for the payment of an amount exceeding 6[three
thousand rupees] or exceeding the limits of its pecuniary jurisdiction,
whichever amount is less:
Provided that where the pecuniary
limits of the jurisdiction of any Court exercising the jurisdiction of a Court
of Small Causes under the Provincial Small Cause Courts Act, 1887 (9 of 1887), 7[or
under a corresponding law in force in 8[any part of India to which
the said Act does not extend]] and not being a Court constituted 9[under
such Act or law], are less than two hundred and fifty rupees, the High Court
may empower such Court to award as costs under this section any amount not
exceeding two hundred and fifty rupees and not exceeding those limits by more
than one hundred rupees :
Provided, further, that the
High Court may limit the amount which any Court or class of Courts is empowered
to award as costs under this section.]
(3) No person against whom
an order has been made under this section shall, by reason thereof, be exempted
from any criminal liability in respect of any claim or defence made by him.
(4) The amount of any
compensation awarded under this section in respect of a false or vexatious claim
or defence shall be taken into account in any subsequent suit for damages or
compensation in respect of such claim or defence.]
Note:
1. S. 35A ins. by Act 9 of
1922, s. 2, which, under section 1(2) thereof may be brought into force in any
State by the State Government on any specified date. It has been so brought
into force in Bombay, Bengal, U.P., Punjab, Bihar, C.P., Assam, Orissa and
Madras.
2. Subs. by Act 66 of 1956,
s. 4, for “not being an appeal”.
3. Subs. by Act 104 of 1976,
s. 14, for “excluding an appeal” (w.e.f. 1-2-1977).
4. Subs. by Act 66 of 1956,
s. 4, for certain words.
5. Shall not be applicable
to commercial disputes of a specified value by Act 4 of 2016, s. 16 and the Schedule
(w.e.f. 23-10-2015).
6. Subs. by Act 104 of 1976,
s. 14, for “one thousand rupees” (w.e.f. 1-2-1977).
7. Ins. by Act 2 of 1951, s.
7.
8. Subs. by the Adaptation
of Laws (No. 2) Order, 1956, for “a Part B State”.
9. Subs. by Act 2 of 1951,
s. 7, for “under that Act”.
Code of Civil
Procedure Section