Costs & Compensation for False Property Litigation – Can Courts Penalize False Claims? (India)
This article is published by The Legal Warning India and written by Advocate Uday Singh.
False and frivolous property litigation has become a serious concern in Indian courts. Many property cases are filed not to protect genuine rights, but to harass the opposite party, delay transactions, or extract unlawful settlements.
Such misuse of the judicial process raises an important legal question:
“Can courts impose costs or compensation for filing false property cases?”
The answer is YES. Indian civil law empowers courts to penalize litigants who abuse the legal process through false claims, suppression of facts, or frivolous litigation.
This article explains the legal provisions, court powers, and practical strategy to seek costs and compensation in false property litigation.
What Is False Property Litigation?
False property litigation generally involves:
- False claim of ownership or possession
- Suppression of registered sale deeds or revenue records
- Misrepresentation to obtain temporary injunctions
- Repeated filing of cases to harass the owner
- Forum shopping or vexatious litigation
Courts have repeatedly observed that such cases waste judicial time and cause serious prejudice to genuine property owners.
Why Courts Impose Costs in Property Disputes
The primary objectives of imposing costs are:
- To discourage frivolous litigation
- To compensate the innocent party
- To penalize abuse of court process
- To maintain discipline in litigation
Costs are not punitive alone — they are corrective.
Legal Provisions for Costs & Compensation (CPC)
1. Section 35 CPC – General Costs
Court has discretion to award costs to the successful party. This includes legal expenses and court fees.
2. Section 35A CPC – Compensatory Costs for False or Vexatious Claims
This provision directly targets false and vexatious litigation. If a claim or defence is found to be false, courts may award compensatory costs.
3. Section 35B CPC – Costs for Causing Delay
Costs may be imposed where a party intentionally delays proceedings.
These provisions empower courts to curb misuse of property litigation.
Compensation for Abuse of Injunction Orders
If a plaintiff obtains a temporary injunction by:
- Suppressing material facts
- Misleading the court
- Producing false documents
The court may:
- Vacate the injunction
- Impose exemplary costs
- Record adverse findings
Such compensation recognizes the loss suffered due to wrongful restraint.
Relationship With Injunction Proceedings
False property litigation often revolves around misuse of interim relief.
Relevant remedies include:
- Application under Order 39 Rule 4 CPC to vacate injunction
- Action under Order 39 Rule 2A CPC for violation or misuse
Related Reading:
What Losses Can Be Claimed as Compensation?
- Legal expenses
- Loss due to blocked sale or development
- Mental harassment (case-specific)
- Business or rental loss
- Delay caused by false injunction
Courts assess compensation based on evidence and conduct of parties.
How & When to Claim Costs in Property Litigation
Costs and compensation may be claimed:
- At interim stage (while vacating injunction)
- At final disposal of suit
- Through specific prayer in written statement
Always plead costs explicitly.
Judicial Approach Toward False Property Cases
Indian courts have increasingly adopted a strict view against false property litigation, especially where:
- Fraud is apparent
- Documents are forged
- Litigation is oppressive
Courts have emphasized that law should not become a tool of harassment.
Common Mistakes Made by Respondents
- Not claiming costs explicitly
- Failing to document losses
- Focusing only on injunction vacation
- Ignoring compensatory remedies
Costs are not automatic — they must be pursued strategically.
Frequently Asked Questions (FAQs)
Q. Are courts actually awarding costs now?
Yes, especially in frivolous property litigation.
Q. Can heavy costs be imposed?
Yes, in exceptional cases involving fraud or abuse.
Q. Is compensation separate from costs?
Yes, depending on circumstances.
This article is for general legal information and awareness purposes only. It does not constitute legal advice or solicitation. Communication is purely informational, in compliance with Bar Council of India Rule 36.
