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In a suit before a Commercial Court on a commercial dispute of Specified Value, Sharma Traders (the…

The Illustration to section 35(2), as substituted by the Schedule to the Commercial Courts Act, 2015, covers this case: "the Court may impose costs on the Plaintiff, despite…

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In a suit before a Commercial Court on a commercial dispute of Specified Value, Sharma Traders (the Plaintiff) seek a money decree for breach of contract, and damages. The Court holds that the Plaintiff is entitled to the money decree, but finds that the claim for damages is frivolous and vexatious. Under section 35 of the Code of Civil Procedure, 1908 as substituted by the Commercial Courts Act, 2015, the Court:

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The Illustration to section 35(2), as substituted by the Schedule to the Commercial Courts Act, 2015, covers this case: "the Court may impose costs on the Plaintiff, despite the Plaintiff being the successful party, for having raised frivolous claims for damages". The general rule that the unsuccessful party pays the successful party's costs is subject to the proviso allowing a departure for reasons recorded in writing. Section 35(3)(e) also lists a frivolous claim or vexatious proceeding among the circumstances the Court must weigh, so costs need not go to the Plaintiff alone.

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