According to Black’s Law Dictionary “costs is a pecuniary allowance made to the successful party for his expenses in prosecuting or defending a suit or a distinct proceeding with a suit”[1]. Cost are an allowance to the party for expenses incurring in prosecuting or defending a suit, an incident to the judgment. In England the term is also used to designate the charges which an attorney or solicitor is entitled to make and recover from his client, as his remuneration for professional services, such a legal advice, attendances, drafting, conducting legal proceedings etc.

Section 35:Section 35 of the Code of Civil Procedure contains the provision as to costs. The cost of an incident to all suits are in the discretion of the Court and the court shall have full power to determine by order out of what property and what extent such costs are to be paid. All necessary direction for these purposes will be given by the court. Where the Court directs the costs are not to follow the events the court shall give it in writing.

Section 35-A:Section 35-A deals with compensatory costs in respect of false and vexatious claims and defence. If in any suit or proceedings, any party objects to the claim or defence on the ground that the claim or defence on any part of it , as against the objector , is false or vexatious and if thereafter as against the objector, such claim or defence is disallowed, abandoned or withdrawn in whole or in part , the Court if it thinks fit may , after recording its reasons for so holding make an order for payment to the objector by the party by whom such claim or defence was put forward , of costs by way of compensation. No court can make any such order for payment of an amount exceeding three thousand rupees or exceeding the limits of the pecuniary jurisdiction , whichever amount is less. The amount of any compensation awarded under this section in respect of false claim or defence has to be taken into account in any subsequent suit for damages or compensation of such claim or defence.