(1) Subject to such conditions and limitations as may be prescribed, and to the provisions of any law for the time being in force, the costs of and incident to all suits shall be in the discretion of the Court, and the Court shall have full power to determine by whom or out of what property and to what extent such costs are to be paid, and to give all necessary directions for the purposes aforesaid. The fact that the Court has no jurisdiction to try the suit shall be no bar to the exercise of such powers.
(2) Where the Court directs that any costs shall not follow the event, the Court shall state its reasons in writing.
Legal Commentary & Landmark Judgments: Section 35
Section 35 of the Code of Civil Procedure, 1908 governs the award of general costs in civil litigations, enacting the foundational rule that costs shall follow the event unless the court directs otherwise for recorded reasons.
The section establishes the universal common law principle: the successful party is entitled to recover their reasonable legal costs from the unsuccessful adversary (*costs follow the event*). A court denying costs to a prevailing party must record specific judicial justifications (such as uncooperative conduct or exaggerated claims).
Civil courts in India have historically awarded token costs under outdated state rules. However, following *Ramrameshwari Mittal* and *Sanjeev Kumar Jain*, courts increasingly exercise discretion under Section 35 to award realistic legal expenses and advocate fees against parties indulging in dishonest or protracted defenses.