Order XIII-A Rule 8 CPC: Power to Impose Costs in Summary Judgment
Order XIII-A Rule 8 of the Code of Civil Procedure, 1908 (CPC), as introduced for commercial disputes by the Commercial Courts Act, 2015, empowers the court to order payment of costs when dealing with an application for summary judgment. The rule expressly refers to Sections 35 and 35A of the CPC.
The Court may make an order for payment of costs in an application for summary judgment in accordance with the provisions of sections 35 and 35A of the Code.
What does Order XIII-A Rule 8 mean?
A summary judgment is a decision on a commercial claim without recording oral evidence where the requirements of Order XIII-A Rule 3 are satisfied. Rule 8 addresses the financial consequences of such an application. It allows the court to determine whether one party should reimburse another for litigation expenses connected with the application, applying the relevant statutory costs provisions.
The power is discretionary. A party does not automatically recover every amount claimed merely because its summary judgment application succeeds or fails. The court considers the applicable legal test, the outcome, conduct of the parties and the reasonableness of the expenses.
Section 35 CPC: Costs in commercial disputes
For commercial disputes of the specified value, Section 35 operates in its form substituted by the Schedule to the Commercial Courts Act, 2015. The court may decide whether costs are payable, their amount, and when payment must be made.
Under the statutory explanation, reasonable costs can include witness fees and expenses, legal fees and expenses, and other expenses incurred in connection with the proceedings.
General rule and judicial discretion
The general rule under the commercial-dispute version of Section 35 is that the unsuccessful party pays the successful party's costs. A court may depart from that rule, but must record its reasons in writing. In deciding costs, the court may consider the parties' conduct, partial success, frivolous counterclaims and reasonable settlement offers, among other statutory factors.
Section 35A CPC: False or vexatious claims and defences
Section 35A concerns compensatory costs where a claim or defence, or part of it, is knowingly false or vexatious and is disallowed, abandoned or withdrawn, subject to the statutory conditions and recorded reasons. It is distinct from the ordinary award of reasonable litigation costs under Section 35.
Importantly, the Schedule to the Commercial Courts Act provides that Section 35A(2) is omitted in its application to commercial disputes of specified value. Accordingly, the general Rs. 3,000 ceiling appearing in the ordinary CPC text of Section 35A(2) should not be presented as the applicable ceiling in such commercial proceedings. The distinction matters when discussing the court's powers under Rule 8.
How costs may arise in a summary judgment application
| Situation | Possible costs consideration |
|---|---|
| Application succeeds | The court may award reasonable costs to the successful applicant, subject to its discretion. |
| Application is dismissed | The respondent may seek costs incurred in opposing the application. |
| Only part of a claim succeeds | The court may take partial success and the parties' conduct into account. |
| False or vexatious claim or defence | Section 35A may be relevant if its specific conditions are established. |
Relationship with other Order XIII-A rules
Rule 1 sets out the scope of summary judgment in commercial disputes. Rule 2 limits the stage at which an application may be made. Rule 4 governs the application and reply, while Rule 5 deals with documentary evidence. Rule 6 identifies the orders the court may make, and Rule 7 allows conditional orders, including security for costs in appropriate cases.
Practical considerations for parties
- Identify and substantiate legal fees and other expenses claimed as costs.
- Explain why the requested costs are reasonable and connected with the proceeding.
- Address the outcome of the application, the parties' conduct and any partial success.
- Distinguish ordinary costs under Section 35 from compensatory costs under Section 35A.
- Check applicable court rules and any relevant judicial directions before filing.
Official legislative sources
Read the Code of Civil Procedure, 1908 (India Code PDF) and the Commercial Courts Act, 2015 (India Code PDF), particularly Section 16 and its Schedule inserting Order XIII-A and modifying the costs provisions for specified commercial disputes.
Legal information updated: 12 October 2026. This article is general information, not advice for a particular proceeding. The applicable statutory text, local amendments and court directions should be checked for the case concerned.