Section 35 CPC — Costs

Section 35 of the Code of Civil Procedure, 1908 deals with costs of civil proceedings. It gives the court discretion to determine whether costs should be awarded, who should pay them, and to what extent.

The basic principle is that costs ordinarily follow the result of the litigation, but the court has discretion to determine costs in accordance with the circumstances of the case.

Section at a Glance

Particular	Details
Section	Section 35 CPC
Subject	Costs
Nature	Procedural
Main purpose	Regulates award and payment of litigation costs
Related provisions	Sections 35A, 35B and Order XXA

Meaning of Section 35 CPC

Section 35 empowers the court to determine by whom and to what extent costs of a suit are to be paid.

Costs may include expenses incurred by a successful party in conducting the litigation, subject to the rules governing taxation and recovery of costs.

The award of costs is generally a matter of judicial discretion.

Basic Rule

The traditional principle is:

Costs ordinarily follow the event.

This means that the successful party is generally entitled to costs, although the court may depart from this principle for recorded reasons and in accordance with the CPC.

Court’s Discretion

The court has discretion regarding:

• Whether costs should be awarded.
• Which party should pay costs.
• The amount of costs.
• The proportion in which costs should be paid.
• The circumstances justifying a departure from the ordinary rule.

The discretion must be exercised judicially and not arbitrarily.

Section 35 and Reasons for Award of Costs

The court must consider the relevant circumstances while determining costs.

Where the court departs from the ordinary rule regarding costs, the reasons for doing so should be reflected in the order or judgment as required by the statutory framework.

Section 35 and Section 35A

These provisions should be distinguished.

Section 35	Section 35A
General costs of litigation	Compensatory costs for certain false or vexatious claims or defences
Broad discretionary power	Special statutory power
Applies generally	Subject to specific conditions

Section 35A therefore deals with a more specific category of costs.

Section 35 and Section 35B

Section 35B deals with costs for causing delay.

It allows the court, in appropriate circumstances, to impose costs where a party fails to take a required step or causes delay in the proceedings.

Thus:

Section 35 → general costs

Section 35A → compensatory costs

Section 35B → costs for causing delay

Section 35 and Order XXA

Order XXA contains provisions concerning costs in specified situations.

Section 35 provides the general statutory foundation, while the relevant rules and other provisions determine particular categories of costs.

Important Case Law

Sanjeev Kumar Jain v. Raghubir Saran Charitable Trust, (2012) 1 SCC 455

Principle: The Supreme Court emphasised the importance of realistic and reasonable costs and recognised that the traditional approach of awarding nominal costs may not adequately reflect the actual expenses of litigation.

Relevance: The decision is important for understanding the modern approach to costs under Section 35.

Salem Advocate Bar Association v. Union of India, (2005) 6 SCC 344

Principle: The Supreme Court discussed the importance of realistic costs and effective case management in reducing unnecessary litigation and delay.

Relevance: It explains the broader role of costs in ensuring procedural efficiency.

Practical Example

A files a suit against B and succeeds after full trial.

Ordinarily, the court may award costs to A. However, the court may consider factors such as the conduct of the parties, the nature of the litigation and other relevant circumstances while determining the appropriate amount.

Practical Importance in Civil Litigation

Costs can influence litigation strategy.

Parties should consider:

• The financial consequences of pursuing or defending a claim.
• Whether unnecessary applications or adjournments may result in additional costs.
• The possibility of realistic costs being awarded.
• The effect of party conduct on the court’s decision regarding costs.

Costs therefore serve not only to compensate the successful party but also to discourage unnecessary procedural conduct.

Common Confusions

Costs Are Different from Damages

Costs are generally connected with the expenses of litigation. Damages are awarded as substantive compensation for a legal wrong.

Costs Are Not Always Automatic

Although costs ordinarily follow the event, Section 35 gives the court discretion regarding their award.

Costs Are Not Limited to Court Fees

Depending on the applicable rules and circumstances, costs can include other litigation-related expenses recognised by law.

Importance for Law Students and Judiciary Exams

What to Remember

• Section 35 deals with general costs of civil proceedings.
• Costs ordinarily follow the event.
• The court has discretion regarding costs.
• Section 35 must be distinguished from Sections 35A and 35B.
• Sanjeev Kumar Jain v. Raghubir Saran Charitable Trust is an important authority on realistic costs.

Important Questions to Prepare

1. Explain the scope of Section 35 CPC.
2. What is meant by the principle that costs follow the event?
3. Is the award of costs discretionary?
4. Distinguish Sections 35, 35A and 35B.
5. Explain the importance of realistic costs in civil litigation.

Key Legal Principles

1. Section 35 governs general costs in civil proceedings.
2. Costs ordinarily follow the event.
3. The court retains discretion regarding the award and amount of costs.
4. The discretion must be exercised judicially.
5. Sections 35A and 35B deal with specific categories of costs.

ALSO READ: Section 34 – Interest

Key Takeaways

Concept	Principle
Section	Section 35 CPC
Subject	General costs
Basic principle	Costs ordinarily follow the event
Court’s power	Discretionary
Section 35A	Compensatory costs
Section 35B	Costs for causing delay
Related provision	Order XXA
Leading case	Sanjeev Kumar Jain v. Raghubir Saran Charitable Trust