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Section 250 CrPC: Compensation for Accusation Without Reasonable Cause

Section 250 of the Code of Criminal Procedure, 1973 empowers a Magistrate, in defined circumstances, to order a complainant or informant to compensate an accused person where the accusation had no reasonable basis. The corresponding provision under the Bharatiya Nagarik Suraksha Sanhita, 2023 is Section 273 BNSS.

Current law: The BNSS came into force on 1 July 2024. Section 273 BNSS is the corresponding provision for cases governed by the new Code. Pending proceedings and other transitional situations must be assessed under the savings provision in Section 531 BNSS.

Full text of Section 250 CrPC, 1973

The following is the statutory text retained from the original article. References to the Indian Penal Code and the Rs. 100 appeal threshold belong to the CrPC provision, not the updated BNSS provision.

(1) If, in any case instituted upon complaint or upon information given to a police officer or to a Magistrate, one or more persons is or are accused before a Magistrate of any offence triable by a Magistrate, and the Magistrate by whom the case is heard discharges or acquits all or any of the accused, and is of opinion that there was no reasonable ground for making the accusation against them or any of them, the Magistrate may, by his order of discharge or acquittal, if the person upon whose complaint or information the accusation was made is present, call upon him forthwith to show cause why he should not pay compensation to such accused or to each or any of such accused when there are more than one; or, if such person is not present, direct the issue of a summons to him to appear and show cause as aforesaid.

(2) The Magistrate shall record and consider any cause which such complainant or informant may show, and if he is satisfied that there was no reasonable ground for making the accusation, may, for reasons to be recorded make an order that compensation to such amount, not exceeding the amount of fine he is empowered to impose, as he may determine, be paid by such complainant or informant to the accused or to each or any of them.

(3) The Magistrate may, by the order directing payment of the compensation under sub-section (2), further order that, in default of payment, the person ordered to pay such compensation shall undergo simple imprisonment for a period not exceeding thirty days.

(4) When any person is imprisoned under sub-section (3), the provisions of sections 68 and 69 of the Indian Penal Code (45 of 1860) shall, so far as may be, apply.

(5) No person who has been directed to pay compensation under this section shall, by reason of such order, be exempted from any civil or criminal liability in respect of the complaint made or information given by him: Provided that any amount paid to an accused person under this section shall be taken into account in awarding compensation to such person in any subsequent civil suit relating to the same matter.

(6) A complainant or informant who has been ordered under sub-section (2) by a Magistrate of the second class to pay compensation exceeding one hundred rupees, may appeal from the order, as if such complainant or informant had been convicted on a trial held by such Magistrate.

(7) When an order for payment of compensation to an accused person is made in a case which is subject to appeal under sub-section (6), the compensation shall not be paid to him before the period allowed for the presentation of the appeal has elapsed, or, if an appeal is presented, before the appeal has been decided; and where such order is made in a case which is not so subject to appeal the compensation shall not be paid before the expiration of one month from the date of the order.

(8) The provisions of this section apply to summons-cases as well as to warrant-cases.

Meaning and scope of Section 250 CrPC

The provision addresses an accusation made without reasonable cause. It does not impose compensation merely because an accused person is discharged or acquitted. The Magistrate must form an opinion that the accusation lacked reasonable grounds and give the complainant or informant an opportunity to show cause.

Conditions for ordering compensation

  1. The case arose from a complaint or information given to the police or a Magistrate.
  2. The accusation concerns an offence triable by a Magistrate.
  3. One or more accused persons have been discharged or acquitted.
  4. The Magistrate considers that there was no reasonable ground for the accusation.
  5. The complainant or informant is called upon to explain why compensation should not be ordered.
  6. After considering the explanation, the Magistrate records reasons for any compensation order.

Amount, non-payment and other liability

Under Section 250(2), compensation cannot exceed the amount of fine that the Magistrate is empowered to impose. Under sub-section (3), the court may direct simple imprisonment of up to 30 days in default of payment, subject to the applicable statutory provisions. The compensation order does not extinguish other civil or criminal liability; compensation paid is taken into account in a later civil suit concerning the same matter.

Appeal and payment of compensation

Section 250(6) CrPC provides an appeal where a Magistrate of the second class orders compensation exceeding Rs. 100. Under Section 250(7), payment is deferred during the applicable appeal period or until disposal of an appeal. In other cases, payment is deferred for one month from the order. The provision applies to both summons-cases and warrant-cases.

Section 273 BNSS: Corresponding law from 1 July 2024

Section 273 of the Bharatiya Nagarik Suraksha Sanhita, 2023, titled Compensation for accusation without reasonable cause, substantially retains the procedure under Section 250 CrPC. Two important statutory updates are:

  • Updated penal-law reference: Section 273(4) refers to Section 8(6) of the Bharatiya Nyaya Sanhita, 2023, instead of Sections 68 and 69 of the Indian Penal Code, 1860.
  • Updated appeal threshold: Section 273(6) provides for appeal against a qualifying compensation order made by a Magistrate of the second class when compensation exceeds Rs. 2,000, instead of Rs. 100 under Section 250(6) CrPC.
IssueSection 250 CrPCSection 273 BNSS
SubjectCompensation for accusation without reasonable causeSame subject
RequirementDischarge or acquittal and no reasonable ground for accusation, with show-cause processSubstantially retained
Default imprisonment referenceIPC Sections 68 and 69BNS Section 8(6)
Second-class Magistrate appeal thresholdExceeding Rs. 100Exceeding Rs. 2,000
CoverageSummons and warrant casesSummons and warrant cases

How the compensation procedure works

First, the Magistrate discharges or acquits the accused and assesses whether there were reasonable grounds for the accusation. Second, the complainant or informant is asked to show cause, immediately if present or by summons if absent. Third, the Magistrate considers that explanation. Finally, if the statutory conditions are satisfied, the Magistrate may make a reasoned compensation order subject to the applicable limit and appeal provisions.

Example: An accused person is acquitted in a Magistrate-triable complaint case. Acquittal alone does not trigger compensation. The Magistrate must separately determine that the accusation lacked reasonable grounds and hear the complainant or informant before deciding whether compensation is warranted.

Frequently asked questions

Does every acquittal entitle the accused to compensation?

No. The Magistrate must additionally find that there was no reasonable ground for making the accusation, consider the complainant or informant's explanation and record reasons.

What is the corresponding BNSS provision?

Section 273 of the Bharatiya Nagarik Suraksha Sanhita, 2023 corresponds to Section 250 of the CrPC, 1973.

Can compensation be ordered in summons cases?

Yes. Sub-section (8) expressly covers both summons-cases and warrant-cases.

Can the complainant appeal against compensation?

A specific appeal under CrPC Section 250(6) applies to qualifying orders of a second-class Magistrate exceeding Rs. 100. The corresponding threshold under BNSS Section 273(6) is Rs. 2,000.

Official legislation and related reading

Legal information only. Verify the current legislation, applicable state amendments and the procedural stage of the particular case before relying on a provision.