Section 35A of The Code of Civil Procedure, 1908
Compensatory costs in respect of false or vexatious claims or defences.
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it has been put forward, and if thereafter, as against the objector, such claim or defence is disallowed, abandoned or withdrawn in whole or in part, the Court, 4[if it so thinks fit], may, after recording its reasons for holding such claim or defence to be false or vexatious, make an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. *[(2) No Court shall make any such order for the payment of an amount exceeding 5[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 excercising the jurisdiction of a Court of Small Causes under the Provincial Small Cause Courts Act, 1887 (9 of 1887), 6[or under a corresponding law in force in 7[any part of India to which the said Act does not extend]] and not being a Court constituted 8[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.] STATE AMENDMENTS Jammu and Kashmir and Ladakh (UTs).-- In Section 35A, omit sub-section (2). [Vide the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Order, 2020, notification No. S.O. 1123(E) dated (18-3-2020) and vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, Notification No. S.O. 3774(E), dated (23-10-2020).]
Summary
- This section allows the court to award extra money as compensation for fake or harassing claims.
- It applies when a claim or a defense is false or vexatious to the knowledge of the person filing it.
- The court must record its reasons for finding a claim false before awarding these costs.
- Paying these costs does not stop a person from being charged with a crime for their lies.
Practical examples
FAQ
1. What are compensatory costs under Section 35A of The Code of Civil Procedure, 1908?
Under Section 35A of The Code of Civil Procedure, 1908, these are costs awarded to a party to compensate them for dealing with a claim or defense that was false or vexatious.
2. What is the limit for compensatory costs under Section 35A of the 1908 Code?
Under Section 35A of the 1908 Code, no court shall make an order for an amount exceeding three thousand rupees or its own pecuniary limit, whichever is less.
3. Does paying Section 35A costs protect me from criminal charges under the 1908 Act?
No, Section 35A of the 1908 Act clearly states that a person is not exempted from criminal liability because of an order made under this section.
4. Can compensatory costs be awarded in an appeal under Section 35A of the Civil Law?
The standard text of Section 35A of the Civil Law excludes appeals and revisions from these specific compensatory costs.
Test yourself
1.Under Section 35A of The Code of Civil Procedure, 1908, what must the court do before making an order for compensatory costs?
2.What is the maximum compensatory cost amount generally allowed under Section 35A of The Code of Civil Procedure, 1908?
3.Does an order under Section 35A of The Code of Civil Procedure, 1908, affect a person's criminal liability?
4.Under Section 35A of The Code of Civil Procedure, 1908, what happens to the compensatory award if there is a later suit for damages?