CPC Section 35A-C | Compensatory Costs in Respect of False or Vexatious Claims or Defences

CPC Section 35A-C

Compensatory costs in respect of false oe vexatious claims or defences:-

(l) If in any suit or other proceeding (including an execution proceeding, not being an appeal, 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it has been put forward, and if thereafter, as against the objector, such claim or defence is disallowed, abandoned or withdrawn in whole or in part, the.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, if the objection has been taken at the earliest opportunity and if it is satisfied of the justice thereof, may, after recording its reasons for holding such claim or defence to be false or vexatious, make an order for the payment to the objector by the party by whom such claim or defence has been put forward, of costs by way of compensation.

(2) No Court shall make any such order for the payment of an amount exceeding twenty [five 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, and not being a Court constituted under that Act 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.

Explanation of CPC Section 35A-C

--------As Per Amendment in Punjab 

In section 35-A, in subsection (2):

(a) for the words “twenty five thousand”, the words “one hundred thousand” shall be substituted;
(b) first proviso shall be omitted; and
(c) in the second proviso, the expression “, further,” shall be omitted.

Punjab Act, 14 of 2018, S. 10 


--------As Per Amendment Balochistan 

In the said Code, in section 35-A, in sub-section (2):

(a) for the words “twenty five thousand”, the words “one million” shall be substituted;
(b) the first proviso, shall be omitted; and
(c) in the second proviso, the word with comma “further,” shall be omitted.

Balochistan Act, 13 of 2019, S. 8 


--------As Per Amendment Islamabad 

For section 35A, the following shall be substituted:

35A. Adjournment costs.

If, on the date fixed for hearing in any proceedings, a party to the proceedings or any other person, despite service of notice, fails to appear or comply with any order of the Court or mandatory provision of the Code or any other law for the time being in force, seeks an adjournment for such purpose, the Court shall, for sufficient cause and reasons to be recorded, grant such adjournment on the condition that such party or person shall pay to the other party, costs of adjournment which shall not be less than five thousand Rupees per adjournment or such higher amount as may be prescribed from time to time:

Provided that if the Court is satisfied that the adjournment being sought is on account of unavoidable reasons beyond the control of the party concerned, which reasons shall be recorded by the Court, the Court may grant adjournment without imposing adjournment costs:

Provided further that if the Court finds that there is a tendency of seeking repeated adjournments by any party on such grounds, the Court may not grant adjournment without imposing the adjournment costs as the Court may deem fit.

Act, 17 of 2017, S. 2 


--------As Per Amendment Islamabad 

After Section 35A, the following new sections shall be inserted:


35B. Special costs.

(1) If in any proceedings, the Court finds that any averment made by any party is false or vexatious to the knowledge of such party, the Court shall award special costs to the opposite party against whom such averment has been made.

(2) The amount of any special costs awarded under sub-section (1) shall be taken into account in any subsequent suit for damages or compensation in respect of such claim or defence.


35C. General provisions as to costs.

The Government shall not be liable to costs under sections 35, 35A and 35B.

Explanation. In sections 35, 35A and 35B, the expression “proceedings” includes suit, appeal, review, revision, execution or any other proceedings and any matter incidental thereto.

Act, 17 of 2017, S. 2 

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