Section 273 of BNSS, 2023 — Compensation for Accusation Without Reasonable Cause

Introduction

Section 273 of the Bharatiya Nagarik Suraksha Sanhita, 2023 provides a mechanism for compensating an accused person where a Magistrate, after discharging or acquitting the accused, finds that there was no reasonable ground for making the accusation.

The provision applies to cases instituted upon a complaint as well as cases based on information given to a police officer or Magistrate. It seeks to protect persons from the consequences of unfounded criminal accusations while giving the complainant or informant an opportunity to explain why the accusation was made.

Meaning of Compensation for Accusation Without Reasonable Cause

Section 273 applies when a person has been accused before a Magistrate of an offence triable by a Magistrate, but the case ultimately results in discharge or acquittal and the Magistrate forms the opinion that there was no reasonable ground for making the accusation.

In such circumstances, the Magistrate may require the complainant or informant to show cause why compensation should not be paid to the accused.

The provision therefore does not make every acquittal or discharge a ground for compensation. There must be an additional finding that there was no reasonable ground for the accusation.

Statutory Basis

Section 273 BNSS contains eight sub-sections dealing with:

• the power to call upon the complainant or informant to show cause;
• determination and payment of compensation;
• imprisonment in default of payment;
• application of the relevant BNS provision to such imprisonment;
• preservation of other civil and criminal liability;
• appeal against certain compensation orders;
• postponement of payment pending appeal or expiry of the prescribed period; and
• applicability to both summons-cases and warrant-cases. (Indian Kanoon)

Object and Purpose

The provision serves two related purposes:

1. It provides a remedy to an accused who has been subjected to a criminal accusation without reasonable grounds.
2. It discourages complainants and informants from initiating criminal proceedings without a reasonable basis.

At the same time, the requirement that the Magistrate consider the explanation of the complainant or informant ensures that compensation is not imposed merely because the accused has been discharged or acquitted.

Essential Elements

1. Case Must Be Triable by a Magistrate

The accused must have been accused before a Magistrate of an offence triable by a Magistrate.

2. Case May Originate from a Complaint or Information

Section 273 applies where the case has been instituted:

• upon a complaint; or
• upon information given to a police officer or to a Magistrate.

Thus, its scope is not confined exclusively to private complaint cases.

3. Accused Must Be Discharged or Acquitted

The Magistrate hearing the case must have discharged or acquitted all or any of the accused.

Discharge and acquittal are therefore both capable of triggering consideration under Section 273.

4. There Must Be No Reasonable Ground for the Accusation

The Magistrate must form the opinion that there was no reasonable ground for making the accusation against the accused.

This is an important additional requirement. An acquittal by itself does not establish that the accusation was without reasonable cause.

5. Opportunity to Show Cause

If the complainant or informant is present, the Magistrate may call upon that person forthwith to show cause why compensation should not be paid.

If the person is absent, the Magistrate may direct the issue of a summons requiring that person to appear and show cause.

The explanation must be recorded and considered by the Magistrate.

Procedure

The procedure under Section 273 can be understood in the following stages:

1. A person is accused before a Magistrate of an offence triable by a Magistrate.
2. The case is instituted upon a complaint or information given to a police officer or Magistrate.
3. The Magistrate discharges or acquits all or any of the accused.
4. The Magistrate forms an opinion that there was no reasonable ground for making the accusation.
5. The complainant or informant is called upon to show cause against payment of compensation.
6. If absent, the complainant or informant may be summoned for this purpose.
7. The Magistrate records and considers the explanation.
8. If satisfied that there was no reasonable ground for the accusation, the Magistrate may, for reasons recorded, order payment of compensation.
9. The compensation is paid to the accused or to such of the accused as the Magistrate specifies.

Amount of Compensation

The Magistrate may determine the amount of compensation, but it cannot exceed the amount of fine that the Magistrate is empowered to impose.

The amount is therefore subject to a statutory ceiling.

The Magistrate must also record reasons when making an order for compensation.

Imprisonment in Default of Payment

Under Section 273(3), the Magistrate may direct that, if the compensation is not paid, the person ordered to pay it shall undergo simple imprisonment for a period not exceeding thirty days.

The imprisonment is therefore a consequence of default in complying with the compensation order, rather than a substitute for the requirement to establish the absence of reasonable grounds for the accusation.

Effect on Other Civil or Criminal Liability

Payment of compensation under Section 273 does not by itself exempt the complainant or informant from any other civil or criminal liability arising from the complaint or information.

However, where compensation has already been paid to the accused under Section 273, that amount must be taken into account while awarding compensation to the same person in a subsequent civil suit concerning the same matter.

Right of Appeal

A complainant or informant ordered by a Magistrate of the second class to pay compensation exceeding ₹2,000 may appeal against the order.

The appeal is treated in the same manner as if the complainant or informant had been convicted in a trial conducted by that Magistrate.

When Is Compensation Paid?

Where the compensation order is appealable, the compensation is not paid to the accused until:

• the period for filing the appeal has expired; or
• where an appeal has been filed, the appeal has been decided.

Where the compensation order is not subject to appeal, payment is postponed until one month after the date of the order.

This prevents immediate payment while the statutory opportunity to challenge the order remains available.

Applicability to Different Types of Cases

Section 273 expressly applies to:

• summons-cases, and
• warrant-cases.

Therefore, the provision is not restricted to only one category of Magistrate-tried cases.

Important Distinctions

Acquittal and Compensation under Section 273

An acquittal does not automatically entitle the accused to compensation.

The Magistrate must additionally form the opinion that there was no reasonable ground for making the accusation and must follow the procedure prescribed by Section 273.

Discharge and Compensation under Section 273

Similarly, discharge alone does not automatically result in compensation.

The absence of reasonable grounds for the accusation is an additional requirement.

Compensation and Criminal Liability

Compensation under Section 273 does not extinguish any other civil or criminal liability that may arise from the complaint or information.

BNSS and CrPC

Section 273 of BNSS corresponds to Section 250 of the Code of Criminal Procedure, 1973. The core framework has been substantially retained. Both provisions permit compensation where a Magistrate discharges or acquits the accused and finds that there was no reasonable ground for the accusation. (Indian Kanoon)

The BNSS provision, however, updates certain monetary and statutory references. Most notably, the appeal threshold for an order passed by a Magistrate of the second class has been increased from more than ₹100 under Section 250 CrPC to more than ₹2,000 under Section 273 BNSS. The reference concerning imprisonment in default has also been updated from the former IPC provisions to Section 8(6) of the Bharatiya Nyaya Sanhita, 2023. (Indian Kanoon)

Relationship with BNS

Section 273 is primarily a procedural provision under BNSS.

However, Section 273(4) connects the consequences of imprisonment in default of payment with Section 8(6) of the Bharatiya Nyaya Sanhita, 2023. Thus, BNSS establishes the procedural power while incorporating the relevant BNS provision for the treatment of such imprisonment. (Indian Kanoon)

Common Confusions

Does every acquitted accused receive compensation?

No.

Compensation is not automatic upon acquittal. The Magistrate must also be satisfied that there was no reasonable ground for making the accusation.

Is compensation under Section 273 the same as damages in a civil suit?

No.

Section 273 provides a specific statutory compensation mechanism in criminal proceedings. It does not prevent separate civil or criminal liability.

Can the complainant or informant explain why the accusation was made?

Yes.

The Magistrate must record and consider the cause shown by the complainant or informant before deciding whether compensation should be ordered.

Does Section 273 apply only to complaint cases?

No.

It also covers cases based on information given to a police officer or to a Magistrate.

Does Section 273 apply to both summons-cases and warrant-cases?

Yes.

Sub-section (8) expressly extends the provision to both categories.

Topic at a Glance

• Topic: Compensation for accusation without reasonable cause
• BNSS Section: Section 273
• Corresponding CrPC provision: Section 250
• Authority: Magistrate
• Cases covered: Cases instituted upon complaint or information given to a police officer or Magistrate
• Basic requirement: Accused is discharged or acquitted
• Additional requirement: No reasonable ground existed for making the accusation
• Procedure: Complainant or informant is given an opportunity to show cause
• Maximum compensation: Cannot exceed the fine the Magistrate is empowered to impose
• Default: Simple imprisonment up to 30 days may be ordered
• Appeal threshold: More than ₹2,000 when ordered by a Magistrate of the second class
• Case types: Summons-cases and warrant-cases

Quick Revision

• Section 273 BNSS deals with compensation for accusation without reasonable cause.
• It applies to cases instituted upon complaint or information given to a police officer or Magistrate.
• The offence must be triable by a Magistrate.
• The accused must have been discharged or acquitted.
• The Magistrate must be of the opinion that there was no reasonable ground for the accusation.
• The complainant or informant must be given an opportunity to show cause.
• Compensation cannot exceed the fine the Magistrate is empowered to impose.
• Default in payment may result in simple imprisonment up to 30 days.
• An order exceeding ₹2,000 by a Magistrate of the second class is appealable.
• The provision applies to summons-cases as well as warrant-cases.
• Section 273 BNSS corresponds to Section 250 CrPC.
• The provision does not make every acquittal or discharge a ground for compensation.

ALSO READ: Section 272 – Absence of complainant

Conclusion

Section 273 BNSS provides a statutory remedy against criminal accusations made without reasonable grounds. Its safeguards are significant because compensation is not imposed merely because an accused is discharged or acquitted. The Magistrate must first form the requisite opinion, hear the complainant or informant, record reasons, and then determine whether compensation should be ordered. The provision consequently balances protection of accused persons against unfounded accusations with procedural fairness to those who initiated the proceedings.