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The Code of Civil Procedure, 1908: page 46

The Code of Civil Procedure, 1908, India Code delivered snapshot 393b8848fdfc476a, physical page 46, typed edition 77428589d4e341672ed6a3e5f663be7dec530c42d0600064ac1314302939267d. Unreviewed extraction.

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         Explanation.—For the purpose of clause (a), the expression “costs” shall mean reasonable costs
    relating to—

              (i) the fees and expenses of the witnesses incurred;
              (ii) legal fees and expenses incurred;

              (iii) any other expenses incurred in connection with the proceedings.
    (2) If the Court decides to make an order for payment of costs, the general rule is that the unsuccessful
party shall be ordered to pay the costs of the successful party:

    Provided that the Court may make an order deviating from the general rule for reasons to be recorded in
writing.
                                                           Illustration

     The Plaintiff, in his suit, seeks a money decree for breach of contract, and damages. The Court holds that the
Plaintiff is entitled to the money decree. However, it returns a finding that the claim for damages is frivolous and
vexatious.

    In such circumstances the Court may impose costs on the Plaintiff, despite the Plaintiff being the successful
party, for having raised frivolous claims for damages.
                                                                             e
                                                                          od
     (3) In making an order for the payment of costs, the Court shall have regard to the following circumstances,
including—

          (a) the conduct of the parties;                         aC
                                                            di
          (b) whether a party has succeeded on part of its case, even if that party has not been wholly successful;

                                                       In
          (c) whether the party had made a frivolous counter-claim leading to delay in the disposal of the case;

          (d) whether any reasonable offer to settle is made by a party and unreasonably refused by the other party;
    and

        (e) whether the party had made a frivolous claim and instituted a vexatious proceeding wasting the time of
    the Court.

    (4) The orders which the Court may make under this provision include an order that a party must pay––

          (a) a proportion of another party’s costs;

          (b) a stated amount in respect of another party’s costs;

          (c) costs from or until a certain date;

          (d) costs incurred before proceedings have begun;

          (e) costs relating to particular steps taken in the proceedings;

          (f) costs relating to a distinct part of the proceedings; and

          (g) interest on costs from or until a certain date.]

                                                    STATE AMENDMENTS
Jammu and Kashmir and Ladakh (UTs).—
       In Section 35, in sub-section (1) omit “Commercial”.
    [Vide the Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Order, 2020, notification
No. S.O. 1123(E) dated (18-3-2020) and vide Union Territory of Ladakh Reorganisation (Adaptation of
Central Laws) Order, 2020, Notification No. S.O. 3774(E), dated (23-10-2020)].




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