law: Code of Civil Procedure, 1908
  
  35.Costs.-
  (1) Subject to such conditions and limitations as may be
  
  prescribed, and to the provisions of any law for the time being in force, the
  
  costs of and incident to all suits shall be in the discretion of the Court, and
  
  the Court shall have full power to determine by whom or out of what property
  
  and to what extent such costs are to be paid, and to give all necessary
  
  directions for the purposes aforesaid. The fact that the Court has no
  
  jurisdiction to try the suit shall be no bar to the exercise of such powers.
  (2) Where the Court directs that any costs shall not follow the
  
  event, the Court shall state its reasons in writing.
  (3) The Court may give interest on costs at any rate not
  
  exceeding six per cent. per annum, and such interest shall be added to the
  
  costs and shall be recoverable as such.
  {S.35A was ins.by s.2 of the Civil Procedure (Amendment) Act,
  
  1922 (9 of 1922), which, under section 1 (2) thereof, may be brought into force
  
  in any Province by the Provincial Government on any specified date. It has been
  
  so brought into force in Bombay, Bengal, U.P., Punjab, Bihar.C.P., Assam,
  
  Orissa and Madras.} [35A.Compensatory costs in respect of false or vexatious
  
  claims or defenses.- (1) If in any suit or other proceeding, not being an
  
  appeal, any party objects to the claim or defense on the ground that the claim
  
  or defense or any part of it is, as against the objector, false or vexatious to
  
  the knowledge of the party by whom it has been put forward, and if thereafter,
  
  as against the objector, such claim or defense is disallowed, abandoned or
  
  withdrawn in whole or in part, the Court, if the objection has been taken at
  
  the earliest opportunity and if it is satisfied of the justice thereof, may,
  
  after recording its reasons for holding such claim or defense to be false or
  
  vexatious, make an order for the payment to the objector by the party by whom
  
  such claim or defense has been put forward, of costs by way of compensation.
  (2) No Court shall make any such order for the payment of an
  
  amount exceeding one thousand rupees or exceeding the limits of its pecuniary
  
  jurisdiction, whichever amount is less:
  Provided that where the pecuniary limits of the
  
  jurisdiction of any Court exercising the jurisdiction of a Court of Small
  
  Causes under the Provincial Small Cause Courts Act, 1887 9 of 1887 { Ins.by Act
  
  2 of 1951, s.7.} [or under a corresponding law in force in a Part B State] and
  
  not being a Court constituted { Subs., ibid., for " under that Act
  
  ".} [under such Act or law], are less than two hundred and fifty rupees,
  
  the High Court may empower such Court to award as costs under this section any
  
  amount not exceeding two hundred and fifty rupees and not exceeding those
  
  limits by more than one hundred rupees:
  Provided , further, that the High Court may limit the
  
  amount which any Court or class of Courts is empowered to award as costs under
  
  this section.
  (3) No person against whom an order has been made under this
  
  section shall, by reason thereof, be exempted from any criminal liability in
  
  respect of any claim or defense made by him.
  (4) The amount of any compensation awarded under this section in
  
  respect of a false or vexatious claim or defense shall be taken into account in
  
  any subsequent suit for damages or compensation in respect of such claim or
  
  defense.]