Question
The maximum compensatory costs that can be imposed under Section 35A of CPC for false or vexatious claims or defences is:
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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