Costs (Sections 35, 35-A, 35-B and

Order XX-A),
Security for Costs (Order XXV)

C.P.C.-II

By
Dr. Vivek Kumar
Synopsis
Costs (Sections 35, 35-A, 35-B and Order XX-A),
Security for Costs (Order XXV)
-Introduction
-Sec. 35. Costs
-Sec. 35-A. Compensatory costs in respect of false or vexatious
claims or defenses
-Sec. 35-B. Costs for causing delay
- Order XX-A- Costs
-Rule.1. Provisions relating to certain items
-Rule.2. Costs to be awarded in accordance with the rules made by
High Court
- Order XXV- Security for Costs
Rule 1. When security for costs may be required from plaintiff
-Rule 2. Effect of failure to furnish security
- Case Laws
 Introduction
Sec. 35, provides that the costs for proceedings of all suits shall
be obligatory under the discretion of the court to the parties to
decide by whom or what property and regarding that to which
extent such costs are to be paid, and other necessary directions
for the purposes. If the court has no jurisdiction to try the suit, it
is not restricted to exercise such powers. Such direction of cost is
mandatory by the court if the cost is not mentioned in the suit,
the court must specify its reasons in writing.
Sec. 35-A,
Provides that in a suit or execution where any party objects about
claims/ defenses that it is false/vexatious. Then the court may
order the opposite party to compensate, as compensatory costs
against the party.
Sec. 35-B, Provides that where any party fails to take the
step as ordered on fix day regarding hearing or
production of evidence or others. Then the court may
order such party to pay to the other party such costs
sufficient to reimburse.
Order XX-A- Provides for the
costs regarding different expenditures and charges under
proceedings of a suit.
Order XXV- Provides that at any stage of a
suit the court may order the plaintiff to furnish security
for the payment of all costs with in fixed time, to assist
the defendant and effect of failure to furnish security.
Costs
Sec. 35. Costs—
(1) Subject to such conditions and limitations as may be
prescribed, and to the provisions of law for the time being
in force, the costs of and incident to all suits shall be in the
discretion of the court, and the court shall have full power
to determine by whom or out of what property and to what
extent such costs are to be paid, and to give all necessary
directions for the purposes aforesaid. The fact that the
court has no jurisdiction to try the suit shall be no bar to
the exercise of such powers.
(2) Where the Court directs that any costs shall not follow
the event, the court shall state its reasons in writing.
Sec. 35-A. Compensatory costs in respect of false or
vexatious claims or defenses—
(1) If any suit
or other proceedings including an execution proceedings but
excluding an appeal or a revision any party objects to the
claim of 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 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 it pecuniary jurisdiction, whichever
amount is less.
Provided that where the pecuniary limits of the
jurisdiction of any Court exercising the jurisdiction of a
Court of Small Causes under the Provincial Small Cause
Courts Act, 1887 (9 of 1887) or under a corresponding law
in force in any part of India to which the said Act does not
extend and not being a Court constituted under such Act or
law, are less than two hundred and fifty rupees, the High
Court may empower such Court to award as costs under
this section any amount not exceeding two hundred and
fifty rupees and not exceeding those limits by more than
one hundred rupees .
Provided, further, that the High Court may limit the
amount or class of Courts is empowered to award as
costs under this Section.
(3) No person against whom an order has been made
under this section shall, by reason thereof, be exempted
from any criminal liability in respect of any claim or
defence made by him.
(4) The amount of any compensation awarded under
this section in respect of a false or vexatious claim or
defence shall be taken into account in any subsequent
suit for damages or compensation in respect of such
claim or defence.
 Sec. 35-B. Costs for causing delay—
(1) If, on any date fixed for the hearing of a suit or for taking any
step therein, a party to the suit- (a) fails to take
the step which he was required by or under this Code to take on that
date, or (b) obtains an adjournment
for taking such step or for producing evidence or on any other
ground, the Court may, for reasons to be recorded, make an order
requiring such party to pay to the other party such costs as would, in
the opinion of the Court, be reasonably sufficient to reimburse the
other party in respect of the expenses incurred by him in attending
the Court on that date, and payment of such costs, on the date next
following the date of such order, shall be a condition precedent to
the further prosecution of- (a) the
suit by the plaintiff, where the plaintiff was ordered to pay such
costs. (b) the
defence by the defendant, where the defendant was ordered to pay
such costs.
Explanation- Where separate defences have been raised
by the defendants or groups of defendants, payment of
such costs shall be a condition precedent to the further
prosecution of the defence by such defendants or groups
of defendants as have been ordered by the Court to pay
such costs.

(2) The costs, ordered to be paid under sub-section (1)

shall not, if paid, be included in the costs awarded in the
decree passed in the suit; but, if such costs are not paid, a
separate order shall be drawn up indicating the amount of
such costs and the names and addresses of the persons by
whom such costs are payable and the order so drawn up
shall be executable against such persons.
ORDER XX-A- Costs
Rule.1. Provisions relating to certain items.- Without
prejudice to the generality of the provisions of this Code
relating to costs, the Court may award costs in respect of,
—
(a) expenditure incurred for the giving of any
notice required to be given by law before the institution of
the suit; (b)
expenditure incurred on any notice which, though not
required to be given by law, has been given by any party
to the suit to any other party before the institution of the
suit;
(c) expenditure incurred on the typing, writing or
printing of pleadings filed by any party;
(d) charges paid by a party for inspection of the records of
the Court for the purposes of the suit;
(e) expenditure
incurred by a party for producing witnesses, even though
not summoned through Court; and
(f) in the case of appeals,
charges incurred by a party for obtaining any copies of
judgments and decrees which are required to be filed along
with the memorandum of appeal.
Rule.2. Costs to be awarded in accordance with the
rules made by High Court- The award of Costs under this
rule shall be in accordance with such rules as the High
Court may make in that behalf.
Security for Costs- Order XXV
Rule 1. When security for costs may be required from plaintiff-
(1) At any stage
of a suit, the Court may, either of its own motion or on the application
of any defendant, order the plaintiff, for reasons to be recorded, to give
within the time fixed by it security for the payment of all costs incurred
and likely to be incurred by any defendant: Provided that such an
order shall be made in all cases in which it appears to the Court that a
sole plaintiff is, or when there are more plaintiffs than one that all the
plaintiffs are, residing out of India and that such plaintiff does not
possess or that no one of such plaintiffs possesses any sufficient
immovable property within India other than the property in suit.

(2) Whoever leaves India under such circumstances as to afford

reasonable probability that he will not be forthcoming whenever he
may be called upon to pay costs shall be deemed to be residing out of
India within the meaning of the proviso to sub-rule (1).
Rule 2. Effect of failure to furnish security-
(1) In the event of such
security not being furnished within the time fixed, the Court shall
make an order dismissing the suit unless the plaintiff or plaintiffs are
permitted to withdraw there from.
(2) Where a suit
is dismissed under this rule, the plaintiff may apply for an order to
set the dismissal aside and, if it is proved to the satisfaction of the
Court that he was prevented by any sufficient cause from furnishing
the security within the time allowed, the Court shall set aside the
dismissal upon such terms as to security; costs or otherwise as it
thinks fit, and shall appoint a day for proceeding with the suit.

(3) The dismissal shall not be set aside unless notice of such
application has been served on the defendant.
 Case Laws
Kumarsan v. M.P.V.S. Seshadre AIR 2002 Ker. 198
The court stated that when lower court after hearing the case
exercised its power not to order for cost to any party, at any stage he
may allow its discretion.
State of Punjab v. Bhajan Singh AIR 2001 SC 1098
Wherein acts of commission of principal secretary, local Gov.
department deprived the president of the municipal council to assume
and discharge his duties. It was held that secretary is personally liable
to pay the cost of Rs. 25,000 to the president of the municipal council.
Progressive Construction Ltd. v. Shama Associates and
Contractors Pvt. Ltd. AIR 2001 Del. 494
The court stated that imposing of adjournment costs should be
reasonable and not by way of penalty.
Dear Students,

For more information and study read Code of Civil Procedure 1908
(bare act) with commentary and case laws, and must study the
following recommended books for your self-study if you would
have:
-C.K. Takwani, Civil Procedure, eastern book company,
-Dr. T.P. Tripathi, The Code of Civil Procedure, Allahabad Law
Agency Publications,
-Sir Dinshaw Fardunji Mulla,The Code of Civil Procedure, Lexis
Nexis, Wadhwa Book Company….
Take care….Be safe.

Thank you