240th Report on Costs in Civil Litigation - Law Commission of India

Justice P. V. Reddi(Former Judge, Supreme Court of India)ChairmanLaw Commission of IndiaNew DelhiTele: 2301 9465 (R)2338 4475 (O)Fax: 2379 2745 (R)9 th May, 2012Dear Minister Salman Khurshid ji,I am forwarding herewith the report of the Law Commission of India on the“Costs in Civil Litigation”. Pursuant to the observations made by the SupremeCourt in three cases – Ashok Kumar Mittal (2009), Vinod Seth (2010) and SanjeevKumar Jain (2011), the Law Commission has taken an in-depth study and hadinteraction with the judicial officers and lawyers at the conference held in some ofthe States. The Rules of various High Courts governing taxation of costs andadvocate’s fee have been pursued. Keeping in view the triple goals of (i) ensuringrealistic and reasonable costs to the successful party, (ii) curbing false and frivolouslitigation and (iii) discouraging unnecessary adjournments, the recommendationshave been made. To felicitate expeditious realization of costs pending appeals,amendments to law has been suggested. As per the recommendations, certainlegislative changes in CPC have been proposed. Amendments to Section 35A(compensatory costs for false and frivolous litigation), S. 95 (compensation forobtaining arrests, attachment, etc., on insufficient grounds), Order XXV (securityfor costs), Order LXI (appeals from original decrees), Order XX, Rule 6A(preparation of decree), have been suggested. The need to revisit and update theRules framed by the High Courts in so far as they relate to costs and advocate’s feeand to develop best practices in the matter of award of adjournment costs, etc., hasbeen pointed out. The observations of Supreme Court have been kept in view.The report is being sent to all the High Courts. Amendments to CPC on the linessuggested needs to be addressed without loss of time.With regards and good wishesSd./(P. V. REDDI)Shri Salman Khurshid, M.P.Hon’ble Minister for Law & JusticeNew Delhi._________________________________________________Office: I. L. I. Building, Bhagwandas Road, New Delhi – 110 001Residence: 1, Janpath, New Delhi 110 011E-mail: pv_reddi@yahoo.co.in2