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Code of Civil Procedure, 1908


(1) Subject to such conditions and limitations as may be prescribed, and to the provisions of any law for the time being in force, the costs of and incident to all suits shall be in the discretion of the Court, and the Court shall have full power to determine by whom or out of what property and to what extent such costs are to be paid, and to give all necessary directions for the purposes aforesaid. The fact that the Court has no jurisdiction to try the suit shall be no bar to the exercise of such powers.

(2) Where the Court directs that any costs shall not follow the event, the Court shall state its reasons in writing.

(3) The Court may give interest on costs at any rate not exceeding six per cent. per annum, and such interest shall be added to the costs and shall be recoverable as such.

{S.35A was s.2 of the Civil Procedure (Amendment) Act, 1922 (9 of 1922), which, under section 1 (2) thereof, may be brought into force in any Province by the Provincial 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.} [35A.Compensatory costs in respect of false or vexatious claims or defenses.- (1) If in any suit or other proceeding, not being an appeal, any party objects to the claim or defense on the ground that the claim or defense 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it has been put forward, and if thereafter, as against the objector, such claim or defense is disallowed, abandoned or withdrawn in whole or in part, the Court, if the objection has been taken at the earliest opportunity and if it is satisfied of the justice thereof, may, after recording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 defense to be false or vexatious, make an order for the payment to the objector by the party by whom such claim or defense 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 one 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 { Act 2 of 1951, s.7.} [or under a corresponding law in force in a Part B State] and not being a Court constituted { Subs., ibid., for " under that Act ".} [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 defense made by him.

(4) The amount of any compensation awarded under this section in respect of a false or vexatious claim or defense shall be taken into account in any subsequent suit for damages or compensation in respect of such claim or defense.]

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