Code of Civil Procedure, 1908 | Part VI: Supplemental Proceedings

Section 95 CPC: Compensation for Arrest, Attachment or Injunction on Insufficient Grounds

Section 95 of the Code of Civil Procedure, 1908 provides a remedy to a defendant where an arrest, attachment or temporary injunction under Section 94 was sought on insufficient grounds, or where the plaintiff's unsuccessful suit lacked reasonable or probable grounds.

The provision enables the court to award reasonable compensation for expense or injury, including injury to reputation, subject to a statutory maximum of Rs. 50,000 and the court's pecuniary jurisdiction. The award is discretionary, not automatic.

Section 95 CPC: Statutory provision

95. Compensation for obtaining arrest, attachment or injunction on insufficient grounds.

(1) Where, in any suit in which an arrest or attachment has been effected or a temporary injunction granted under the last preceding section,

(a) it appears to the Court that such arrest, attachment or injunction was applied for on insufficient grounds, or

(b) the suit of the plaintiff fails and it appears to the Court that there was no reasonable or probable grounds for instituting the same,

the defendant may apply to the Court, and the Court may, upon such application, award against the plaintiff by its order such amount not exceeding fifty thousand rupees, as it deems a reasonable compensation to the defendant for the expense or injury (including injury to reputation) caused to him:

Provided that a Court shall not award, under this section, an amount exceeding the limits of its pecuniary jurisdiction.

(2) An order determining any such application shall bar any suit for compensation in respect of such arrest, attachment or injunction.

Official text: India Code - Section 95 CPC; Code of Civil Procedure, 1908 (official PDF).

Meaning and scope of Section 95

Arrest before judgment means a court-directed measure intended to secure the defendant's appearance in circumstances allowed by the CPC. Attachment before judgment is a protective measure concerning property, intended to prevent frustration of a possible decree. A temporary injunction is an interim order restraining or requiring conduct while the dispute is pending.

Section 95 is linked to Section 94 CPC. Procedural safeguards for arrest and attachment before judgment appear in Order XXXVIII, and those governing temporary injunctions in Order XXXIX of the First Schedule to the CPC.

When can compensation be claimed?

Insufficient grounds for interim relief: The court finds that arrest, attachment or temporary injunction was applied for on insufficient grounds.
Baseless unsuccessful suit: The plaintiff's suit fails and the court finds that there were no reasonable or probable grounds for instituting it.

The defendant must apply to the court. The court then considers the statutory conditions, the expense or injury caused and the appropriate compensation. Merely losing a case does not, by itself, establish entitlement to compensation under Section 95.

Maximum compensation under Section 95 CPC

The central statutory ceiling is Rs. 50,000. The court cannot award more than its applicable pecuniary jurisdiction permits. The ceiling does not mean every successful application will result in an award of Rs. 50,000; the amount must be reasonable in the circumstances.

The Rs. 50,000 ceiling replaced the earlier Rs. 1,000 limit through the Code of Civil Procedure (Amendment) Act, 1999, effective 1 July 2002. The provision expressly includes injury to reputation within compensable injury.

How to apply under Section 95

Identify the arrest, attachment or temporary injunction granted in the suit under Section 94.
File an application before the court explaining the relevant ground under Section 95(1)(a) or (b).
Set out the expenses and injury allegedly caused, including any reputational injury, with supporting records where available.
Request reasonable compensation within the statutory and jurisdictional limits.

The court determines the application after considering the circumstances and applicable procedural rules. Local amendments and court rules should also be checked.

Effect of an order under Section 95(2)

Once the court determines an application under Section 95, subsection (2) bars a separate suit for compensation in respect of the same arrest, attachment or injunction. This makes the decision to pursue the statutory remedy significant and merits case-specific legal advice.

Illustrative example

Suppose a plaintiff obtains an attachment before judgment without adequate supporting grounds. If the court finds that the application was made on insufficient grounds, the defendant may seek compensation under Section 95 for expenses or injury caused. The court must assess the evidence and may award a reasonable sum within the applicable limits.

Frequently asked questions

Is compensation automatic when an injunction is vacated?

No. The defendant must apply, and the court must find that the statutory conditions for compensation are satisfied.

Can reputational harm be compensated?

Yes. Section 95(1) expressly includes injury to reputation among the injuries for which reasonable compensation may be awarded.

Does Section 95 apply to every failed civil suit?

No. It concerns the specified arrest, attachment or temporary injunction context under the preceding section and the conditions set out in Section 95.

Can a separate compensation suit be filed after the Section 95 application is decided?

Section 95(2) bars a suit for compensation in respect of the arrest, attachment or injunction once an application under that section has been determined.

Related law and official references

Legal note: This article describes the central CPC provision for general information. Check applicable State amendments, court rules and subsequent legal developments before relying on it in proceedings.