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    Question

    The maximum compensatory costs that can be imposed under

    Section 35A of CPC for false or vexatious claims or defences is: 
    A Rs. 1,000 or the pecuniary jurisdiction limit, whichever is less Correct Answer Incorrect Answer
    B Rs. 3,000 or the pecuniary jurisdiction limit, whichever is less Correct Answer Incorrect Answer
    C Rs. 5,000 or the pecuniary jurisdiction limit, whichever is less Correct Answer Incorrect Answer
    D Rs. 10,000 or the pecuniary jurisdiction limit, whichever is less Correct Answer Incorrect Answer
    E No monetary limit prescribed Correct Answer Incorrect Answer

    Solution

    Section 35A(2) of the CPC explicitly provides that compensatory costs for false or vexatious claims or defences shall not exceed Rs. 3,000 or the limit of the Court's pecuniary jurisdiction, whichever is less. This section was amended to increase the limit from the earlier Rs. 1,000.

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