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Imposition of Exemplary Costs for Trial Delays

Legal Framework and DiscretionCourts have the authority to impose exemplary costs on parties responsible for delaying proceedings. The decision involves evaluating relevant figures and circumstances, with courts exercising discretion to determine appropriate amounts to serve as a deterrent (e.g., Pawan Advertising VS State of Maharashtra - Bombay (2024)).reference: Pawan Advertising VS State of Maharashtra - Bombay (2024)
Criteria for Imposing CostsExemplary costs are justified when a party's conduct results in wastage of judicial time or deliberate delay, especially if such conduct is proven to be vexatious or manipulative. Courts may impose costs to penalize delaying tactics, including non-appearance, filing vexatious petitions, or misrepresenting facts (e.g., SANJAY KUMAR DALMIA vs THE STATE OF JHARKHAND - 2025 Supreme(Online)(SC) 11060, SRI MUNISWAMAIAH @ MUNISWAMAPPA SINCE DEAD BY LRS SMT.JAYAMMA, 1A. W/O LATE MUNISWAMAIAH @ MUNISWAMAPPA AGED 66 YEARS, 1B. SRI.CHANDRASHEKAR S/O LATE MUNISWAMAIAH @ MUNISWAMAPPA AGED 34 YEARS vs SRI HANUMANARASAIAH SINCE DEAD BY LRS 1A. LAKSHMAMMA W/O LATE HANUMANARASAIAH AGED 65 YEARS, 2. SRI.H.KAGGALAIAH @ KAGGALAHANUMANTHAIAH S/O LATE HANUMANARASAIAH, AGED ABOUT 45 YEARS, 3. SRI.H.ASWATHNARAYANA S/O LATE HANUMANARASAIAH, AGED ABOUT 42 YEARS, 4. H.NARASIMHA MURTHY S/O LATE HANUMANARASAIAH, AGED ABOUT 37 YEARS, 5. H.NAGARAJU S/O LATE HANUMANARASAIAH, AGED ABOUT 35 YEARS - Karnataka).references: SANJAY KUMAR DALMIA vs THE STATE OF JHARKHAND - 2025 Supreme(Online)(SC) 11060, ["SRI MUNISWAMAIAH @ MUNISWAMAPPA SINCE DEAD BY LRS SMT.JAYAMMA, 1A. W/O LATE MUNISWAMAIAH @ MUNISWAMAPPA AGED 66 YEARS, 1B. SRI.CHANDRASHEKAR S/O LATE MUNISWAMAIAH @ MUNISWAMAPPA AGED 34 YEARS vs SRI HANUMANARASAIAH SINCE DEAD BY LRS 1A. LAKSHMAMMA W/O LATE HANUMANARASAIAH AGED 65 YEARS, 2. SRI.H.KAGGALAIAH @ KAGGALAHANUMANTHAIAH S/O LATE HANUMANARASAIAH, AGED ABOUT 45 YEARS, 3. SRI.H.ASWATHNARAYANA S/O LATE HANUMANARASAIAH, AGED ABOUT 42 YEARS, 4. H.NARASIMHA MURTHY S/O LATE HANUMANARASAIAH, AGED ABOUT 37 YEARS, 5. H.NAGARAJU S/O LATE HANUMANARASAIAH, AGED ABOUT 35 YEARS - Karnataka"]
Deterrent Effect and ProportionalityCosts should not be trivial; they must act as a genuine deterrent to delay tactics. Courts have imposed substantial exemplary costs—ranging from Rs. 5,00,000/- to Rs. 25,000/-—to discourage such conduct and uphold judicial efficiency (e.g., Pawan Advertising VS State of Maharashtra - Bombay (2024), INDOBOM00000027648).references: Pawan Advertising VS State of Maharashtra - Bombay (2024), ["Bapusaheb Madhavrao Bhavar vs Sunita Dilip Dube - Bombay"]
Procedural ConsiderationsCourts often require parties to pay costs as a condition for proceeding with hearings or for granting relief, especially when delays are attributable to the party's misconduct. Failure to comply can lead to further costs or penalties (e.g., HDFC Ltd. vs Anukaran Malik - Delhi (2022), HDFC Ltd VS Anukaran Malik - Delhi).references: HDFC Ltd. vs Anukaran Malik - Delhi (2022), ["HDFC Ltd VS Anukaran Malik - Delhi"]
Limits and Statutory GuidanceWhile courts have discretion, statutory provisions like Section 35A suggest that in vexatious litigation, exemplary costs should generally not exceed Rs. 3,000, although courts may impose higher costs based on circumstances. The key is balancing deterrence with reasonableness (e.g., Trinath Maharana VS Bhaskar Chandra Swain - Current Civil Cases (2025), TRINATH MAHARANA vs BHASKAR CHANDRA SWAIN - 2025 Supreme(Online)(Ori) 959).references: Trinath Maharana VS Bhaskar Chandra Swain - Current Civil Cases (2025), ["TRINATH MAHARANA vs BHASKAR CHANDRA SWAIN - 2025 Supreme(Online)(Ori) 959"]

Analysis and ConclusionCourts recognize their power to impose exemplary costs to penalize delaying tactics and ensure timely justice. The amount varies based on conduct severity, with higher costs serving as a stronger deterrent. Proper exercise of this discretion requires clear findings on delay-causing conduct, with costs proportionate to the misconduct. Such measures aim to uphold judicial efficiency and discourage abuse of process, but must also respect statutory limits and fairness principles.references: comprehensive synthesis from all sources

Exemplary Costs for Defendants Delaying Trials: Key Rules

In the Indian judicial system, timely justice is a cornerstone of fairness. However, delays caused by deliberate tactics from one party can frustrate this goal, leading to prolonged litigation and increased costs for others. A common question arises: Can exemplary costs be imposed on a defendant for delaying trial? This post explores the legal framework, judicial discretion, and real-world applications to help litigants understand when courts may step in to deter such behavior.

While this article provides general insights based on established precedents, it is not legal advice. Consult a qualified lawyer for advice tailored to your situation.

Legal Authority of Courts to Impose Exemplary Costs

Courts in India possess inherent powers and discretionary authority to impose exemplary costs when a party, including defendants, engages in deliberate delays, abuses court processes, or uses dilatory tactics. This power aims to discourage frivolous actions and ensure efficient justice delivery. As noted in various judgments, Courts have the discretion to impose exemplary costs when a party deliberately delays proceedings, abuses court processes, or employs dilatory tactics Bijoy Krishna Acharjee VS Mithun Sharma - Current Civil Cases (2017)Keshri Vanaspati Products Ltd. VS Jua Trading Co. - 2013 0 Supreme(Raj) 1705 Ismile VS State of Rajasthan - 1998 0 Supreme(Raj) 267 NANIBEN BECHARBHAI VS H. K. DAVE PRIVATE LIMITED - 1994 0 Supreme(Guj) 111 Achhar Kumar Verma VS Kuldeep Chand Lakhanpal - 2012 0 Supreme(HP) 492 Sudhir Chandra Adhikari VS Satyabrata Roy - 2015 0 Supreme(Tri) 720 Bharti Kuthiala VS Vipin Chhibar - 2018 0 Supreme(HP) 1330 M/s. DCM Shriram Consolidated Ltd. VS The Employees Provident Funds Appellate Tribunal - 2015 0 Supreme(Del) 405 Sr. Manager. L. I. C. of India VS Kamlaben R. Patel - Consumer (1997)Dilipkumar Hirachand Jain VS Dena Bank - 2013 0 Supreme(Bom) 1766 SURESH CHANDER GOYAL VS DAVINDER SINGH - 2016 0 Supreme(Del) 2283 TRINATH MAHARANA vs BHASKAR CHANDRA SWAIN - 2025 Supreme(Online)(Ori) 959.

This authority stems from provisions like Section 35A of the Code of Civil Procedure, 1908 (CPC), which allows for compensatory costs in respect of false or vexatious claims or defenses, extendable to exemplary measures for egregious conduct.

Circumstances Warranting Imposition of Exemplary Costs

Not every delay triggers exemplary costs; courts require evidence of deliberate misconduct. Key scenarios include:

Deliberate and unjustified delaying tactics: Filing frivolous or vexatious petitions, repeated unnecessary applications, or non-cooperation with proceedings. Such actions justify exemplary costs Keshri Vanaspati Products Ltd. VS Jua Trading Co. - 2013 0 Supreme(Raj) 1705 Ismile VS State of Rajasthan - 1998 0 Supreme(Raj) 267 Lachmi Devi VS Gurcharan Singh - 2005 0 Supreme(P&H) 526 NANIBEN BECHARBHAI VS H. K. DAVE PRIVATE LIMITED - 1994 0 Supreme(Guj) 111 Sudhir Chandra Adhikari VS Satyabrata Roy - 2015 0 Supreme(Tri) 720 Achhar Kumar Verma VS Kuldeep Chand Lakhanpal - 2012 0 Supreme(HP) 492 M/s. DCM Shriram Consolidated Ltd. VS The Employees Provident Funds Appellate Tribunal - 2015 0 Supreme(Del) 405 Sr. Manager. L. I. C. of India VS Kamlaben R. Patel - Consumer (1997)Dilipkumar Hirachand Jain VS Dena Bank - 2013 0 Supreme(Bom) 1766 SURESH CHANDER GOYAL VS DAVINDER SINGH - 2016 0 Supreme(Del) 2283.
Suppression of facts or false statements: Misconduct intended to prolong litigation, where costs may reflect the extent of delay or undue benefit gained by the delaying party Lachmi Devi VS Gurcharan Singh - 2005 0 Supreme(P&H) 526 Surendra Kumar VS State of Rajasthan - 2001 0 Supreme(Raj) 542.

For instance, in cases involving frivolous defenses, courts have highlighted that the defence as raised by the defendant was frivolous and in fact amounted to an abuse of the process of the Court. Since the defendant had protracted the matter by raising a frivolous and fanciful defence, it was submitted that exemplary costs should be imposed on the defendant JAYASWAL ASHOKA INFRASTRUCTURES PVT LTD VS PANSARE LAWAD SALLAGAR - 2019 Supreme(Bom) 654.

Additionally, unnecessary adjournments or failure to file written statements promptly can invite costs. In one case, the court noted, Costs could have been imposed for granting adjournment Hafizur Rehman @ Pappu VS Kahkashan Begum - 2019 Supreme(All) 500, emphasizing that while exemplary costs are possible, procedural fairness like allowing time for filings must be balanced.

Determining the Quantum of Exemplary Costs

The amount of exemplary costs falls within the court's judicial discretion, guided by factors such as:

Nature and extent of the delay.
Benefit derived by the defaulting party.
Actual costs incurred by the opposing party or proceedings.

Courts have awarded sums ranging from Rs. 5,000 to Rs. 50,000 or more, tailored to the misconduct's severity Keshri Vanaspati Products Ltd. VS Jua Trading Co. - 2013 0 Supreme(Raj) 1705 Ismile VS State of Rajasthan - 1998 0 Supreme(Raj) 267 Lachmi Devi VS Gurcharan Singh - 2005 0 Supreme(P&H) 526 NANIBEN BECHARBHAI VS H. K. DAVE PRIVATE LIMITED - 1994 0 Supreme(Guj) 111 Achhar Kumar Verma VS Kuldeep Chand Lakhanpal - 2012 0 Supreme(HP) 492 Dilipkumar Hirachand Jain VS Dena Bank - 2013 0 Supreme(Bom) 1766 Sudhir Chandra Adhikari VS Satyabrata Roy - 2015 0 Supreme(Tri) 720 Surendra Kumar VS State of Rajasthan - 2001 0 Supreme(Raj) 542 Bharti Kuthiala VS Vipin Chhibar - 2018 0 Supreme(HP) 1330 Sr. Manager. L. I. C. of India VS Kamlaben R. Patel - Consumer (1997).

Real examples illustrate this:- In a suit dismissal scenario, the trial court imposed exemplary costs of Rs.10,000/- (Rupees ten thousand only) payable to the defendant THE ANAKAPALLE V V RAMANA COOPERATIVE SUGARS LTD vs BHEESETTY DURGA NAGESWARA RAO, though later critiqued for haste.- Substitution applications delayed unduly led to costs of Rs.25,000/- MSD OSS B. V VS RELIANCE LIFE SCIENCES PVT LTD - 2018 Supreme(Del) 1969, with the court stating, Costs can be imposed to compensate the defendant for the delay.- For frivolous litigation, courts advocate Imposition of heavy costs would also control unnecessary adjournments by the parties Shanti Devi W/o late Sukhram VS Rahul Khanna S/o Sri N. N. Khanna - 2016 Supreme(UK) 227 Inder Singh VS Bheem Singh - 2016 Supreme(Raj) 552.

Limitations and Judicial Safeguards

Exemplary costs are not imposed arbitrarily. Courts must ensure they are:

Proportionate to the misconduct: Not oppressive, serving primarily as a deterrent Keshri Vanaspati Products Ltd. VS Jua Trading Co. - 2013 0 Supreme(Raj) 1705 Surendra Kumar VS State of Rajasthan - 2001 0 Supreme(Raj) 542 Dilipkumar Hirachand Jain VS Dena Bank - 2013 0 Supreme(Bom) 1766.
Awarded appropriately: Typically to the affected party or legal aid authorities, rather than as pure punitive damages unless misconduct is extreme Keshri Vanaspati Products Ltd. VS Jua Trading Co. - 2013 0 Supreme(Raj) 1705 Surendra Kumar VS State of Rajasthan - 2001 0 Supreme(Raj) 542.

The power is exercised sparingly and judiciously to uphold fairness. For delays due to mere negligence, standard costs suffice, not necessarily exemplary ones Keshri Vanaspati Products Ltd. VS Jua Trading Co. - 2013 0 Supreme(Raj) 1705 Sudhir Chandra Adhikari VS Satyabrata Roy - 2015 0 Supreme(Tri) 720 Surendra Kumar VS State of Rajasthan - 2001 0 Supreme(Raj) 542 Ismile VS State of Rajasthan - 1998 0 Supreme(Raj) 267. In one ruling, despite defendant's conduct warranting costs, the court stressed providing opportunities for fair justice, noting, Exemplary costs can be imposed where the conduct of the defendant warrant such imposition. However it appears that the trial court was more swayed by the conduct of the defendant, still it would have been appropriate to allow time to the defendant to file written statement Hafizur Rehman @ Pappu VS Kahkashan Begum - 2019 Supreme(All) 500.

Insights from Notable Cases

Judicial precedents reinforce these principles:

Frivolous defenses and protraction: Reference to Ramrameshwari Devi vs. Nirmala Devi supports costs for abuse of process JAYASWAL ASHOKA INFRASTRUCTURES PVT LTD VS PANSARE LAWAD SALLAGAR - 2019 Supreme(Bom) 654.
Delay in applications: Courts allow substitutions post-merger but impose costs for tardiness, as in patent disputes MSD OSS B. V VS RELIANCE LIFE SCIENCES PVT LTD - 2018 Supreme(Del) 1969.
Broader deterrence: To curb frivolous suits, exemplary costs is imposed for instituting frivolous litigation... Imposition of actual, realistic or proper costs... would go a long way Shanti Devi W/o late Sukhram VS Rahul Khanna S/o Sri N. N. Khanna - 2016 Supreme(UK) 227 Inder Singh VS Bheem Singh - 2016 Supreme(Raj) 552.
Permissive possession claims: Dismissed with costs and mesne profits, highlighting no automatic ownership via adverse possession claims used to delay Inder Singh VS Bheem Singh - 2016 Supreme(Raj) 552.

These cases show courts balancing deterrence with equity, often directing expeditious trials post-costs.

Key Takeaways and Recommendations

Yes, exemplary costs can generally be imposed on defendants for deliberate trial delays via dilatory tactics or process abuse, proportionate to the wrongdoing Keshri Vanaspati Products Ltd. VS Jua Trading Co. - 2013 0 Supreme(Raj) 1705 Surendra Kumar VS State of Rajasthan - 2001 0 Supreme(Raj) 542 Ismile VS State of Rajasthan - 1998 0 Supreme(Raj) 267.
Litigants should meticulously document opposing party's delay-causing conduct to support cost applications.
Courts exercise caution, prioritizing justice over punishment.

To avoid such costs, defendants must act diligently—file responses promptly, avoid frivolous filings, and cooperate. Plaintiffs facing delays can seek costs backed by evidence.

In summary, while delays plague Indian courts, exemplary costs serve as a vital tool to expedite justice. Stay informed, proceed cautiously, and seek professional guidance for your case.

This post draws from judicial precedents and is for informational purposes only.

#ExemplaryCosts #TrialDelays #CourtCosts

SANJAY KUMAR DALMIA vs THE STATE OF JHARKHAND - 2025 Supreme(Online)(SC) 11060

We would have imposed exemplary costs on the petitioner for wasting judicial time, but on the persuasion made by his learned counsel, we do not propose to impose any costs. 6. ... However, if the Trial Court reports that the petitioner or his learned counsel are adopting delaying tactics, in that case, not only should the concession of bail granted to the petitioner be cancelled, but we ....

SRI MUNISWAMAIAH @ MUNISWAMAPPA SINCE DEAD BY LRS SMT.JAYAMMA, 1A. W/O LATE MUNISWAMAIAH @ MUNISWAMAPPA AGED 66 YEARS, 1B. SRI.CHANDRASHEKAR S/O LATE MUNISWAMAIAH @ MUNISWAMAPPA AGED 34 YEARS vs SRI HANUMANARASAIAH SINCE DEAD BY LRS 1A. LAKSHMAMMA W/O LATE HANUMANARASAIAH AGED 65 YEARS, 2. SRI.H.KAGGALAIAH @ KAGGALAHANUMANTHAIAH S/O LATE HANUMANARASAIAH, AGED ABOUT 45 YEARS, 3. SRI.H.ASWATHNARAYANA S/O LATE HANUMANARASAIAH, AGED ABOUT 42 YEARS, 4. H.NARASIMHA MURTHY S/O LATE HANUMANARASAIAH, AGED ABOUT 37 YEARS, 5. H.NAGARAJU S/O LATE HANUMANARASAIAH, AGED ABOUT 35 YEARS - 2025 Supreme(Online)(KAR) 5795

The Trial Court shall consider the fact whether the summons are served or not, if the summons are served and the affidavit is filed with misrepresentation of facts, the Trial Court shall impose exemplary costs on the defendants. iv. ... The Trial Court ought to have done exercise on this. If the Trial Court comes to the conclusion that the summons are served and only for the delay tactic....

HDFC Ltd. vs Anukaran Malik

The said opportunity is being given to the Defendant subject to a sum of Rs.1.5 lakhs being paid by the Defendant to the Plaintiff on or before 27th January, 2022 towards the earlier costs imposed in this petition, as also towards further costs for permitting the Defendant to produce its witness for ... On the last date, i.e., on 27th October, 2021, costs of Rs.15,000/-....

HDFC Ltd VS Anukaran Malik - 2022 Supreme(Del) 1415

The said opportunity is being given to the Defendant subject to a sum of Rs. 1.5 lakhs being paid by the Defendant to the Plaintiff on or before 27th January, 2022 towards the earlier costs imposed in this petition, as also towards further costs for permitting the Defendant to produce its witness for ... The suit was filed in 2013 and issues were framed by the Trial Cou....

THE ANAKAPALLE V V RAMANA COOPERATIVE SUGARS LTD vs BHEESETTY DURGA NAGESWARA RAO

Thus, the trial Court erroneously dismissed the suit and hastily imposed heavy costs on the plaintiff. Therefore, the decree and judgment in the suit are liable to be set aside and the suit shall be decreed as prayed for. ... After hearing both parties, the trial Court dismissed the suit awarding exemplary costs of Rs.10,000/- (Rupees ten thousand only) payable to the defendant....

Trinath Maharana VS Bhaskar Chandra Swain

In the present case, the executing court had imposed the cost by an earlier order as it was satisfied that the J.Drs by filing vexatious petitions were delaying disposal of the execution proceedings. ... If any of the parties have unreasonably protracted the proceedings, the Judge shall have the discretion to impose exemplary costs after taking into account the costs that may have been imposed#H....

TRINATH MAHARANA vs BHASKAR CHANDRA SWAIN - 2025 Supreme(Online)(Ori) 959

If any of the parties have unreasonably protracted the proceedings, the Judge shall have the discretion to impose exemplary costs after taking into account the costs that may have been imposed at the time of adjournments." DISCUSSION AND CONCLUSION 14. ... In the present case, the executing court had imposed the cost by an earlier order as it was satisfied that the J.Drs by filing vexatious petitions were....

Bapusaheb Madhavrao Bhavar vs Sunita Dilip Dube

Petitioner/plaintiff to pay the costs of Rs.25,000/- (Rs. Twenty Five Thousand) to defendant nos.1,2, 3-A to 3-C and 5 within a period of four weeks from today. Costs to be deposited in the trial Court, with liberty to defendant nos.1,2, 3-A to 3-C and 5 to withdraw the same. v. ... For such conduct of the petitioner, though amendment sought is necessary for the purpose of determining real question of con....

ASIA PACIFIC HIGHER LEARNING SDN BHD vs MAJLIS PERUBATAN MALAYSIA & ANOR

These costs were incurred directly as a result of the acts of the 2nd Defendant, and hence the element of causation was satisfied. ... In the absence of a credible explanation from the 2nd Defendant, I found that the plaintiff has proven the contention that the 2nd Defendant imposed the requirement motivated by an improper purpose. ... [51] I was, however of the view that exemplary dama....

Hafizur Rehman @ Pappu VS Kahkashan Begum - 2019 Supreme(All) 500

Exemplary costs can be imposed where the conduct of the defendant warrant such imposition. However it appears that the trial court was more swayed by the conduct of the defendant, still it would have been appropriate to allow time to the defendant to file written statement. Exemplary costs can be imposed where the conduct of the defendant warrant such imposition. Costs could have been imposed for granting adjournment. Costs could have been imposed for granti....

JAYASWAL ASHOKA INFRASTRUCTURES PVT LTD VS PANSARE LAWAD SALLAGAR - 2019 Supreme(Bom) 654

It was then submitted that the defence as raised by the defendant was frivolous and in fact amounted to an abuse of the process of the Court. Since the defendant had protracted the matter by raising a frivolous and fanciful defence, it was submitted that exemplary costs should be imposed on the defendant. In that regard reference was made to the decisions in Ramrameshwari Devi and Ors. vs. Nimrala Devi and Ors., (2011) 8 SCC 249 and Padmawati vs.

MSD OSS B. V VS RELIANCE LIFE SCIENCES PVT LTD - 2018 Supreme(Del) 1969

In my opinion, no prejudice is caused to the defendant on account of the delay in moving the present application. Costs can be imposed to compensate the defendant for the delay.

Shanti Devi W/o late Sukhram VS Rahul Khanna S/o Sri N. N. Khanna - 2016 Supreme(UK) 227

This problem can be solved or at least can be minimised if exemplary costs is imposed for instituting frivolous litigation. In order to curb uncalled for and frivolous litigation, the courts have to ensure that there is no incentive or motive for uncalled for litigation. Imposition of heavy costs would also control unnecessary adjournments by the parties. Imposition of actual, realistic or proper costs and/or ordering prosecution in appropriate cases would go a long way in co....

Inder Singh VS Bheem Singh - 2016 Supreme(Raj) 552

This problem can be solved or at least can be minimised if exemplary costs is imposed for instituting frivolous litigation. In order to curb uncalled for and frivolous litigation, the courts have to ensure that there is no incentive or motive for uncalled for litigation. Imposition of heavy costs would also control unnecessary adjournments by the parties. Imposition of actual, realistic or proper costs and/or ordering prosecution in appropriate case would go a long way in con....