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SECTION 34, 35, 35A, 35B OF CODE OF CIVIL PROCEDURE 1908

What is Interest? What is Costs? What is Compensatory costs in respect of false or vexatious claims or defenses? What is Costs for causing delay? Section 34, 35, 35A and 35B of Code of Civil Procedure 1908

Interest, Costs, Compensatory costs in respect of false or vexatious claims or defenses and Costs for causing delay are defined under Section 34, 35, 35A and 35B of Code of Civil Procedure 1908. Provisions under these Sections are:

Section 34 of Code of Civil Procedure 1908 "Interest"

(1) Where and in so far as a decree is for the payment of money, the Court may, in the decree, order interest at such rate as the Court deems reasonable to be paid on the principal sum adjudged, from the date of the suit to the date of the decree, in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit, with further interest at such rate not exceeding six per cent, per annum as the Court deems reasonable on such principal sum from the date of the decree to the date of payment, or to such earlier date as the Court thinks fit :

 

Provided that where the liability in relation to the sum so adjudged had arisen out of a commercial transaction, the rate of such further interest may exceed six per cent, per annum, but shall not exceed the contractual rate of interest or where there is no contractual rate, the rate at which moneys are lent or advanced by nationalised banks in relation to commercial transactions.

Explanation I.-In this sub-section, "nationalised bank" means a corresponding new bank as defined in the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 (5 of 1970).

Explanation II.-For the purposes of this section, a transaction is a commercial transaction, if it is connected with the industry, trade or business of the party incurring the liability.

(2) Where such a decree is silent with respect to the payment of further interest on such principal sum from the date of the decree to the date of payment or other earlier date, the Court shall be deemed to have refused such interest, and a separate suit therefore shall not lie.

Section 35 of Code of Civil Procedure 1908 "Costs"

(1) Subject to such conditions and limitations as may be prescribed, and to the provisions of 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.

Section 35A of Code of Civil Procedure 1908 "Compensatory costs in respect of false or vexatious claims or defenses"

(1) If any suit or other proceedings including an execution proceedings but [excluding an appeal or a revision] any party objects to the claim of 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 it 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 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

Uttar Pradesh- (i) For sub-section (1) of section 35A substitute the following.
"(1) If any suit or other proceedings including proceedings in execution, but not being an appeal or revision, the court finds that the claim or defence or any part thereof is false or vaxatious to the knowledge of the party by whom it has been put forward and if such claim or defence 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 defence to be false or vexatious, make an order for the payment to the successful party or costs by way of compensation irrespective of the decisions on other issues in the case".

[U.P. Act No. 24 of 1954].
(ii) After sub-section (1) insert the following.
"(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 insufficient, compensatory cost under that sub-section.
[U.P. Act No. 57 of 1976].

Section 35B of Code of Civil Procedure 1908 "Costs for causing delay"

(1) If, on any date fixed for the hearing of a suit or for taking any step therein, a party to the suit-

(a) fails to take the step which he was required by or under this Code to take on that date, or

(b) obtains an adjournment for taking such step or for producing evidence or on any other ground, the Court may, for reasons to be recorded, make an order requiring such party to pay to the other party such costs as would, in the opinion of the Court, be reasonably sufficient to reimburse the other party in respect of the expenses incurred by him in attending the Court on that date, and payment of such costs, on the date next following the date of such order, shall be a condition precedent to the further prosecution of-

(a) the suit by the plaintiff, where the plaintiff was ordered to pay such costs.

(b) the defence by the defendant, where the defendant was ordered to pay such costs.

Explanation.-Where separate defences have been raised by the defendants or groups of defendants, payment of such costs shall be a condition precedent to the further prosecution of the defence by such defendants or groups of defendants as have been ordered by the Court to pay such costs.

(2) The costs, ordered to be paid under sub-section (1) shall not, if paid, be included in the costs awarded in the decree passed in the suit; but, if such costs are not paid, a separate order shall be drawn up indicating the amount of such costs and the names and addresses of the persons by whom such costs are payable and the order so drawn up shall be executable against such persons.

Code of Civil Procedure 1908

What is Objections to jurisdiction? What is Power to transfer suits which may be instituted in more than one Court? Section 21 and 22 of Code of Civil Procedure 1908

To what Court application lies? What is General power of transfer and withdrawal? Section 23 and 24 of Code of Civil Procedure 1908

What is Power of Supreme Court to transfer suits, etc? What is Institution of suits? Section 25 and 26 of Code of Civil Procedure 1908

What is Summons to defendants? What is the procedure for Service of summons where defendant resides in another State? Section 27 and 28 of Code of Civil Procedure 1908

What is the procedure for Service of foreign summonses? What is Power to order discovery and the like? Section 29 and 30 of Code of Civil Procedure 1908

What is Summons to witness? What is Penalty for default? What is Judgment and decree? Section 31, 32 and 33 of Code of Civil Procedure 1908

What is Interest? What is Costs? What is Compensatory costs in respect of false or vexatious claims or defenses? What is Costs for causing delay? Section 34, 35, 35A and 35B of Code of Civil Procedure 1908

What is Application to orders? What is Definition of Court which passed a decree? Section 36 and 37 of Code of Civil Procedure 1908

Court by which decree may be executed? What is Transfer of decree? What is Transfer of decree to Court in another State? Section 38, 39 and 40 of Code of Civil Procedure 1908


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