Section 95 CPC provides a remedy where a person has suffered loss because of wrongful arrest, attachment or temporary injunction obtained in a civil proceeding without sufficient grounds.
- Meaning of Section 95 CPC
- Section at a Glance
- When Can Compensation Be Claimed?
- Types of Relief Covered
- Compensation
- Purpose of Section 95
- Section 95 and Section 94
- Practical Example
- Important Limitation
- Practical Importance
- Importance for Law Students and Judiciary Exams
- Important Questions to Prepare
- Key Legal Principles
- Key Takeaways
Meaning of Section 95 CPC
A court may award compensation to a person who has suffered loss or injury because another party wrongfully obtained certain interim measures against them.
The provision seeks to discourage misuse of the court’s procedural powers and protect parties from unjustified interim relief.
Section at a Glance
| Particular | Details |
|---|---|
| Section | Section 95 CPC |
| Subject | Compensation for wrongful interim measures |
| Nature | Procedural |
| Main purpose | Compensation for wrongful arrest, attachment or injunction |
| Related provision | Section 94 |
When Can Compensation Be Claimed?
Section 95 applies where:
- The court has granted an arrest, attachment or injunction against a person.
- The person against whom the order was made has suffered loss or injury.
- The arrest, attachment or injunction was obtained on insufficient grounds or through circumstances covered by the Section.
- The statutory conditions for compensation are satisfied.
Types of Relief Covered
The provision concerns wrongful use of:
- Arrest before judgment
- Attachment before judgment
- Temporary injunction
These are forms of supplemental relief contemplated under Section 94 CPC.
Compensation
The court may award compensation for the loss or injury suffered, subject to the statutory monetary limit and other conditions prescribed by Section 95.
The provision is therefore not a general remedy for every unsuccessful application for interim relief.
Purpose of Section 95
The provision balances two interests:
- The need to allow courts to grant protective interim measures where genuinely necessary; and
- The need to prevent parties from obtaining such measures irresponsibly or without adequate grounds.
A party should not suffer unjustified harm merely because an opponent improperly invoked the court’s interim powers.
Section 95 and Section 94
Section 94 gives the court powers to grant supplemental relief.
Section 95 provides a compensatory remedy where specified supplemental relief has been wrongfully obtained.
| Section 94 | Section 95 |
|---|---|
| Provides interim procedural powers | Provides compensation for specified wrongful use |
| Protects the subject matter of litigation | Protects the person affected by wrongful relief |
| Includes injunction, arrest and security | Deals with consequences of wrongful arrest, attachment or injunction |
Practical Example
A obtains an attachment before judgment against B without sufficient grounds. The attachment causes B financial loss.
If the requirements of Section 95 are satisfied, B may seek compensation for the loss caused by the wrongful attachment.
Important Limitation
Mere failure of a suit or mere rejection of an application for interim relief does not automatically establish entitlement to compensation.
The statutory requirements of Section 95 must be satisfied.
Practical Importance
A party seeking interim relief should ensure that there are proper grounds for invoking the court’s powers.
A party affected by wrongful interim relief should examine whether the requirements of Section 95 are satisfied and whether compensation can be sought before the competent court.
Importance for Law Students and Judiciary Exams
What to Remember
- Section 95 deals with compensation for specified wrongful interim measures.
- It covers wrongful arrest, attachment and temporary injunction.
- Compensation is subject to statutory conditions and limits.
- Mere failure of the underlying claim does not automatically create liability.
- Section 95 should be studied with Section 94 and the relevant procedural Orders.
Important Questions to Prepare
- What is the object of Section 95 CPC?
- When can compensation be awarded under Section 95?
- What types of wrongful interim measures are covered?
- Distinguish Sections 94 and 95 CPC.
- Does every unsuccessful interim application result in compensation?
Key Legal Principles
- Section 95 provides a limited compensatory remedy against specified wrongful interim measures.
- The claimant must satisfy the statutory conditions.
- The provision prevents misuse of arrest, attachment and injunction proceedings.
- Compensation under Section 95 is subject to the limits prescribed by law.
ALSO READ: Section 94 – Supplemental Proceedings
Key Takeaways
| Concept | Principle |
|---|---|
| Section | Section 95 CPC |
| Subject | Compensation for wrongful interim relief |
| Covers | Arrest, attachment, injunction |
| Nature | Compensatory |
| Related provision | Section 94 |
