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

Explanation using Example

Example 1:

Rajesh files a lawsuit against his neighbor, Suresh, claiming that Suresh has encroached on his property by building a wall. Suresh objects to Rajesh's claim, stating that Rajesh's claim is false and vexatious, and that Rajesh knows it to be untrue. The court investigates the matter and finds that Rajesh's claim is indeed false and was made with the intention of harassing Suresh. The court then orders Rajesh to pay Suresh compensatory costs of Rs. 3,000 for making a false claim.

Example 2:

Meena files a suit against her former business partner, Anil, alleging that Anil owes her Rs. 50,000 from their business dealings. Anil objects, stating that Meena's claim is false and vexatious, and that she is aware that no such debt exists. During the proceedings, Meena realizes that she cannot substantiate her claim and decides to withdraw ...

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