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In commercial disputes to which the Commercial Courts Act, 2015 applies, what happens to the monetary…

Section 16 and paragraph 3 of the Schedule to the Commercial Courts Act omit CPC section 35A(2) for the commercial disputes to which the amendments apply. The omission…

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In commercial disputes to which the Commercial Courts Act, 2015 applies, what happens to the monetary ceiling formerly imposed by section 35A(2) of the Code of Civil Procedure, 1908 on compensatory costs for false or vexatious claims or defences?

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Answer and explanation

Correct answer D

Section 16 and paragraph 3 of the Schedule to the Commercial Courts Act omit CPC section 35A(2) for the commercial disputes to which the amendments apply.

The omission removes that subsection’s ceiling; it does not remove every condition governing compensatory costs.

Option feedback

Option A

The ordinary ₹3,000 ceiling is in the subsection omitted for applicable commercial disputes.

Option B

No replacement ₹5,000 ceiling is supplied by the Commercial Courts Act schedule.

Option C

No replacement ₹10,000 ceiling is supplied by that schedule.

Option D

The schedule expressly omits section 35A(2); this removes that ceiling without abolishing the other legal conditions on compensatory costs.

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