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Friday, 13 November 2026 Judgments, law jobs and study notes, written by a practising advocate
Code of Civil Procedure, 1908 · Part I: Suits In General

Section 35A CPC: Compensatory costs in respect of false or vexatious claims or defences

Bare Act text

[35A. Compensatory costs in respect of false or vexatious claims or defences.—(1) If in any suit or other proceedings [including an execution proceeding but [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it has been put forward, and if thereafter, as against the objector, such claim or defence is disallowed, abandoned or withdrawn in whole or in part, the Court, [if it so thinks fit], may, after recording its reasons for holding such claim or defence to be false or vexatious, make an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 [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), [or under a corresponding law in force in [any part of India to which the said Act does not extend]] and not being a Court constituted [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)].

Uttar Pradesh Amendment of section 35-A of Act V of 1908.—In the Code of Civil Procedure, 1908 (hereinafter in this Chapter referred to as the principal Act) in section 35-A, after sub- section (1), the following sub-section shall be inserted, namely :—

“Revision.—(1-A) The provisions of sub-section (1) shall mutatis mutandis apply to an appeal where the appellate court confirms the decision of the trial court and the trial court has not awarded, or has awarded insufficient, compensatory cost under that sub- section.”

[Vide Uttar Pradesh Act 57 of 1976, s. 2]

Uttar Pradesh Section 35-A or Schedule of the Act.—(1) For the existing sub-section (1), the following shall be substituted ; “(1) If in any suit or other proceeding, including proceedings in execution, but not being an appeal or revision, the court finds that the claim or defense or any part thereof is false or vexatious to the knowledge of the party by whom it has been put forward and if such claim or defense or such part is disallowed abandoned or withdrawn in whole or in part, the court may, after recording its reasons for holding such claim or defense to be false or vexatious, make an order for the payment to the successful party of costs by way of compensation irrespective

of the decision on other issues in the case.”

[Vide Uttar Pradesh Act XXIV of 1954, s. 3]

Amendment notes

  1. Sub-section (2) of section 35(A), shall be omitted in its application to commercial disputes of a specified value, vide Act 4 of 2016, s. 16 and the Sch. (w.e.f. 23-10-2015).
  2. 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.
  3. Subs. by Act 66 of 1956, s. 4, for “not being an appeal” (w.e.f. 1-1-1957).
  4. Subs. by Act 104 of 1976, s. 14, for “excluding an appeal” (w.e.f. 1-2-1977).
  5. Subs. by Act 66 of 1956, s. 4, for certain words (w.e.f. 1-1-1957).
  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 (w.e.f. 1-4-1951).
  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” (w.e.f. 1-4-1951).

Text of the Code of Civil Procedure, 1908 (Act No. 5 of 1908), as amended, including the changes for commercial disputes made by the Commercial Courts Act, 2015. Source: India Code, Government of India.

In simple words

In a suit or other proceeding, including execution but excluding an appeal or revision, a party may object that a claim or defence is false or vexatious to the knowledge of the party advancing it. If that claim or defence is then disallowed, abandoned or withdrawn, the Court may, after recording its reasons, order compensatory costs payable to the objector. The amount cannot exceed three thousand rupees or the Court's pecuniary limits, whichever is less.

Part I: Suits In General

  1. 9 Courts to try all civil suits unless barred
  2. 10 Stay of suit
  3. 11 Res judicata
  4. 12 Bar to further suit
  5. 13 When foreign judgment not conclusive
  6. 14 Presumption as to foreign judgments
  7. 15 Court in which suits to be instituted
  8. 16 Suits to be instituted where subject-matter situate
  9. 17 Suits for immovable property situate within jurisdiction of different Courts
  10. 18 Place of Institution of suit where local limits of jurisdiction of Courts are uncertain
  11. 19 Suits for compensation for wrongs to person or movables
  12. 20 Other suits to be instituted where defendants reside or cause of action arises
  13. 21 Objections to jurisdiction
  14. 21A Bar on suit to set aside decree on objection as to place of suing
  15. 22 Power to transfer suits which may be instituted in more than one Court
  16. 23 To what Court application lies
  17. 24 General power of transfer and withdrawal
  18. 25 Power of Supreme Court to transfer suits, etc
  19. 26 Institution of suits
  20. 27 Summons to defendants
  21. 28 Service of summons where defendant resides in another State
  22. 29 Service of foreign summonses
  23. 30 Power to order discovery and the like
  24. 31 Summons to witness
  25. 32 Penalty for default
  26. 33 Judgment and decree
  27. 34 Interest
  28. 35 Costs
  29. 35A Compensatory costs in respect of false or vexatious claims or defences
  30. 35B Costs for causing delay
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