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

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However, if any practical difficulty is pointed out by the learned advocate forcomplying with the rule, the court may allow the certificate to be filed within 15days from the date of judgment. It is also necessary to prescribe in the rule thatthe fee certificate should, inter alia, contain the Permanent Account Number ofthe advocate.6.16 In this context, we may refer to section 118 of CPC which lays down thatif the High Court considers it necessary that a decree passed in the exercise oforiginal civil jurisdiction should be executed before the amount of the costsincurred in the suit can be ascertained by taxation, the Court may order that thedecree shall be executed forthwith and that the decree so far as it relates to costsshall be executed as soon as the amount of costs are ascertained by taxation.7. COSTS IN REVISIONS:A number of revision petitions against interlocutory orders, etc., are beingfiled in the High Courts either under Article 227 of the Constitution or Section115 CPC quite often to delay the proceedings. Ordinarily, the costs awarded, ifany, in such cases are quite nominal. The rules in most of the States do notprovide for assessment of costs in revision petitions. It is necessary to prescribeappropriate guidelines for fixing the costs (including advocate’s fee) coupledwith the prescription of minimum costs which can only be waived in exceptionalcircumstances.38
8. Section 35-A8.1 Section 35-A of the Code which was introduced in the year 1922, bearsthe heading “Compensatory costs in respect of false or vexatious claimsor defence”. It provides that if any party objects to any claim or adefence, on the ground that it is false or vexatious, to the knowledge ofthe party by whom it has been put forward, and if such claim isdisallowed or abandoned or withdrawn, the Court may impose costs byway of compensation after recording reasons for its conclusion. Clause(2) of the said Section places a limitation to the effect that compensatorycosts so imposed shall not exceed Rs. 3,000/-. The earlier limit ofRs.1000/- was enhanced to Rs.3000/- by an amendment made in the year1976 w.e.f. 01.02.1977. The second limitation placed is that thequantum of costs awarded under the Section shall not exceed the limitsof pecuniary jurisdiction of the Court concerned. The first proviso tosub-section (2) places further restriction on the amount that could beawarded by way of compensatory costs by a Court of Small Causes etc.The second proviso further empowers the High Court to limit theamount which any Court or class of Courts is empowered to award ascompensatory costs under this Section.8.2 As observed by Delhi High Court in National Textile Corporation Vs.Kunj Behri Lal (AIR 2010, Del. 199), frivolous litigation clogs the wheels ofjustice making it difficult for the courts to provide speedy justice to the genuinelitigants.39
Page 1 and 2: GOVERNMENT OF INDIALAWCOMMISSIONOFI
Page 3 and 4: INDEXSl.No.ParticularsPage numbers1
Page 5 and 6: speculative suits, apart from rende
Page 7 and 8: “… the sum of money which the c
Page 10 and 11: 2.11 A bill of costs is a certified
Page 12 and 13: of the parties has behaved unreason
Page 14 and 15: two competing views, to cite, (i) t
Page 16 and 17: inflation and vexatious litigation,
Page 18 and 19: is a commercial dispute? In a matte
Page 20 and 21: “The process of taxation of costs
Page 22 and 23: 54. While imposing costs we have to
Page 24 and 25: (d) The sub-section (2) lays down:
Page 26 and 27: The ‘model rule’ relating to fi
Page 28 and 29: Moreover, the revision of rules inc
Page 30 and 31: notification dated 7.12.2006. The r
Page 32 and 33: are quite low judged by the present
Page 34 and 35: advocate. It appears that the High
Page 36 and 37: for enhanced court-fee; especially,
Page 40 and 41: 8.3 Section 35-A can be invoked in
Page 42 and 43: The above two cases, however, arise
Page 44 and 45: the Legislature may consider award
Page 46 and 47: (3) The expression ‘exemplary’
Page 48 and 49: Section 94(c), if the Court is sati
Page 50 and 51: expenses incurred for attending the
Page 52 and 53: significant. The quantum of costs u
Page 54 and 55: (2)…………..12.2 The effect of
Page 56 and 57: The format of bill of costsneeds to
Page 58 and 59: Annexure-ICosts in Civil litigation
Page 60 and 61: from the officer concerned and the
Page 62 and 63: 5,00,000/- (Five Lakhs)” and dire
Page 64 and 65: In Oswal Fats & Oils Ltd. vs. Addit
Page 66 and 67: quantum are a matter entirely in th
Page 68 and 69: 6, In all such suits, referred to a
Page 70 and 71: 22. In all interlocutory applicatio
Page 72 and 73: 39. The fee shall be fixed at half

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

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