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CS Professional · Drafting, Pleadings and Appearances · Pleadings

Meera Traders Pvt Ltd, Mumbai, is sued in a civil suit for recovery. It objects that the plaintiff's claim is false to the plaintiff's knowledge, and the claim is later withdrawn. Under Section 35A of the Code of Civil Procedure, 1908, what may the Court do?

The Court may, if it thinks fit, order compensatory costs after recording reasons for holding the claim false or vexatious. The party must have objected, and the claim must have been disallowed, abandoned or withdrawn. The power is discretionary, and it does not extend to appeals or revisions.

  1. AIt must award compensatory costs automatically without recording reasons
  2. BIt may, if it thinks fit, after recording reasons that the claim is false or vexatious, order costs by way of compensationCorrect
  3. CIt may only direct the plaintiff to be prosecuted and cannot award costs
  4. DIt may award costs only if the objection is raised in an appeal

Explanation

Section 35A(1) requires an objection by the party, later disallowance, abandonment or withdrawal of the claim, and allows the Court, if it thinks fit, to order compensatory costs after recording its reasons. It is discretionary, not automatic, and appeals and revisions are excluded.

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