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December 2011

Increase cost on frivolous litigation 3,000% to 1 lakh : SC

By Raman Jokhakar, Mukesh Trivedi
Hon. Jt. Secretaries
Reading Time 1 mins
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The Supreme Court has suggested a 3,000% hike in the cost imposed on a person indulging in frivolous and vexatious litigation, saying unless it is raised from the current Rs.3,000 to Rs.1 lakh, the system will fail to control false cases being foisted to victimise innocent citizens. A Bench of Justices R. V. Raveendran and A. K. Patnaik, said, “At present, Courts have virtually given up awarding any compensatory costs as such a small sum of Rs.3,000 will not make much difference. We are of the view that the ceiling in regard to compensatory costs should be at least Rs.1 lakh.”

It referred to section 35A of the Civil Procedure Code, which provides for compensatory cost in respect of false or vexatious claims or defence. The maximum amount to be levied on a person indulging in false litigation was amended in 1977 from Rs.1,000 to Rs.3,000.

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