[AS PASSED BY THE NATIONAL ASSEMBLY]
BILL
further to amend the Code of Civil Procedure, 1908 and the Code of ' Criminal Procedure, 1898
It is hereby enacted as follows:-
1 Short title, application and commencement,-
(1) This
Act may be called the Costs of Litigation Act, 2017,
(2) It shall apply to the Islamabad Capital Territory.
2. Amendment of Act v of 1908.- In the code of civil
Procedure, 1908 (Act V of 1908),-
(I) for section 35, the following shall be substituted, namely:-
A
WHEREAS it is expedient further to amend the Code of Civil
Procedure, 1908 (Act V of 1908) and the Code of Criminal Procedure,
1898 (V of 1898), for the purposes hereinafter appearing;
(3) It shall come into force on such date as the Federal
Government may, by notiflcation in the official Gazette, specify and shall
apply to such courts in the Islamabad Capital Territory as the Federal
Government may, by notification in the official Gazette, determine in this
behalf and different dates may be specified in respect of different courts.
PART-I
CIVIL PROCEEDINGS
"35. Costs.- (1) Subject to such conditions and
limitations as may be prescribed, and to the provisions of any
law for the tirne being in force,-
(i) a party to any proceedings shall, before the
announcement of final order, judgment or decree,
file in the prescribed Form, details of actual costs
of litigation, including but not limited to court fee,
s:amp fee, fee paid to counsel and all other
ancillary or incidental expenses thereto;
(ii) the Court shall award the actual costs of litigation
under clause
(i) to the successful party with markup not exceeding the prescribed limit per
annum, as notified by the State Bank of Pakistan,
at the time of passing the order, judgment or
decree;
(iii) the costs other than those mentioned in clause (i)
shall be in the discretion of the Court; and
(iv) the Court shall have full power to determine out
of what property such costs are to be paid and
recovered and to give all necessary directions for
the purposes aforesaid.
(2) The fact that the Court has no jurisdiction in respect
of the proceedinqs shall be no bar to the exercise of such
powers under - this section.";
(II) for section 35-A, the following shall be substituted, namely:-
"35A. Adjournment costs.-If, on the date
fixed for hearing in any proceedings, a party to the
proceedings or any other person, despite service of
notice, fails to appear or comply with any order of the
Court or mandatory provision of the Code or any other
law for the time being in force, seeks an adjournment
for such purpose, the Court shall, for sufficient cause
and reasons to be recorded, grant such adjournment on
the condition that such party or person shall pay to the
other party, costs of adjournment which shall not be
less than five thousand Rupees per adjournment or
such higher amount as may be prescribed from time to
time:
Provided that if the Court is satisfied that the
adjournment being sought ls on account of unavoidable
reasons beyond the control of the party concerned,
which reasons shall be recorded by the Court, the Court
may grant adjournment without imposing adjournment
costs:
Provided further that if the court finds that there
is a tendency of seeking repeated adjournments by any
party on such grounds/ the court may not grant
adjournment without lmposing the adjournment costs
as the court may deem fit."; and
(III) after section 35A, substituted as aforesaid, the following new
sections shall be inserted, namely:-
"35B. Special costs.-
(1) if in any proceedings,
the Court finds that any averment made by any party is
false or vexatious to the knowledge of such party, the
Court shall award special costs to the opposite party
against whom such averment has been made.
(2) The amount of any special costs awarded
under sub-section (1) shall be taken into account in any
subsequent suit for damages or compensation in
respect of such claim or defence.
35C. General provisions as to costs.- The
Government shall not be liable to costs under sections
35, 35A and 358.
Explanation.- In sections 35, 35A and 35B, the
expression "proceedlngs" lncludes suit, appeal, review,
revision, execution or any other proceedings and any
matter incidental thereto.".
PART.II
CRIMINAL PROCEEDINGS
3. Amendment of Act v of 1898.-In the Code of Criminal
Procedure, 1898 (Act V of 1898),-
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(I) the existing section 200 shall be renumbered as sub-section
(1) thereof and,-
(i) in sub.section (1), renumbered as aforesaid,
proviso. after clause (aa), the following new
(b) shall be inserted. namely:-
in the
clause
(U)
(n1)
"(b) \r'/here a complainant is a Court or a public
servant, the Court or a public servant, as the
case may be, shall not be liable to adjournment
costs under sub-section (2)i'; and
(ii) after sub-section (1"), amended as aforesaid, the
following new sub-section shall be added, namety:-
"(2) Subject to provisions of section 344, il on the date fixed for hearing in any
proceedings, a party to a case or any other
person, despite service of notice. fails to appear
cr comply with any order of the Court or
mandatory provision of the Code or any other law
fl)r the time being in force, seeks an adjournment
f,lr such purpose. the Court may, for sufficient
cause and reasons to be recorded, grant such
edjournment on the condition that such party or
F,erson shall pay to the other party, adjournment
costs which shall not be less than ten thousand
rupees per adjournment or such higher amount
e s may be prescribed from time to time.";
ln section 250, in sub-section (2), for the words "twenty
five thousand" th_e words "one hundred thousand" shall be
substituted."; and
in sectiori 344, in sub-section (1), after the expression
"terms" tile commas and words ", including adjournment
costs," shall be inserted.".
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STATEMENT OF OBJECTS AND REASONS
The tendency of filing false and vexatious cases and taking
baseless grounds for defense is unfortunately on the increase. This
tendency leads to numerous evils, lncluding heavy expenditure incurred
by the affected parties, causing them financial loss and mental torture,
apart from wasting precious time of the courts. It is, therefore, necessary
to empower courts to impose costs to discourage false and frivolous
litigation and unnecessary adjournments. It is proposed to make
amendments in the Code of Civll Procedure, 1908 for thls purpose.
Amendments are also being proposed in the Code of Criminal Procedure,
1898 to provide for impositlon of adjournment costs in criminal cases.
The Bill is designed to achieve the aforesald object.
MINISTER-IN-CHARGE
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