The maximum amount which a Court may order for payment of compensatory cost in case of false or vexatious claims or defence under Civil Procedure Code 1908 is:

Solution

As per Code of Civil Procedure S. 35A. Compensatory costs in respect of false or vexatious claims or defences   (1) If in any suit or other proceedings including an execution proceeding but 3[excluding an appeal or a revision] any party objects to the claim or defence on the ground that the claim or defence 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it has been put forward, and if thereafter, as against the objector, such claim or defence is disallowed, abandoned or withdrawn in whole or in part, the Court, 4[if it so thinks fit], may, after recording its reasons for holding such claim or defence to be false or vexatious, make an order for the payment to the object or by the party by whom such claim or defence has been put forward, of cost by way of compensation.   (2) No Court shall make any such order for the payment of an amount exceeding three thousand rupees or exceeding the limits of its pecuniary jurisdiction, whichever amount is less: