Section 95 of CPC : Section 95: Compensation for obtaining arrest, attachment or injunction on insufficient ground.

Explanation using Example

Example 1:

Scenario: Ramesh files a lawsuit against Suresh, claiming that Suresh owes him Rs. 1,00,000. Ramesh also requests the court to temporarily freeze Suresh's bank account (attachment) to ensure that Suresh does not withdraw the money before the case is decided. The court grants the attachment order.

Outcome: After a thorough examination, the court finds that Ramesh's claim was baseless and that there were no reasonable grounds for the lawsuit. Suresh applies to the court for compensation, arguing that the attachment of his bank account caused him financial difficulties and damaged his reputation.

Court's Decision: The court agrees with Suresh and orders Ramesh to pay Suresh Rs. 30,000 as compensation for the trouble and injury caused by the wrongful attachment.

Example 2:

Scenario: Priya files a lawsuit against her business partner, Anil, alleging that Anil has been embezzling funds from their joint venture. Priya also requests a temporary injunction to prevent Anil from accessing the company's accounts. The court grants the temporary injunction.

Outcome: During the trial, it becomes evident that Priya's allegations were unfounded and that she had no reasonable basis for filing the lawsuit. The court dismisses Priya's suit. Anil then applies for compensation, claiming that the injunction caused significant harm to his business operations and reputation.

Court's Decision: The court finds Priya's actions to be without reasonable grounds and orders her to pay Anil Rs. 40,000 as compensation for the injury caused by the wrongful injunction.