Section 95 of CPC : Section 95: Compensation For Obtaining Arrest, Attachment Or Injunction On Insufficient Ground

Explanation using Example

Imagine a scenario where Mr. A files a suit against Mr. B, claiming that Mr. B is about to fraudulently sell a property that is under dispute. Based on this claim, Mr. A obtains a temporary injunction from the court to prevent Mr. B from selling the property until the case is decided.

However, upon hearing the case, the court finds that Mr. A's claim was baseless and that there were no sufficient grounds to believe that Mr. B was going to sell the property fraudulently. The court also concludes that Mr. A had no reasonable or probable grounds to initiate the lawsuit in the first place.

As a result, Mr. B, who suffered expenses and potential damage to his reputation because of the injunction, applies to the court under Section 95 of The Code of Civil Procedure, 1908. The court, acknowledging the inconvenience and unwarranted legal costs incurred by Mr. B, awards him a compensation not exceeding fifty thousand rupees, which it deems reasonable for the troubles he faced due to the unjustified injunction.

This order from the court will also prevent Mr. B from filing a separate suit to claim any further compensation for the same arrest, attachment, or injunction, as the court's determination under this section is final regarding such compensation.