(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 probable ground 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.
Legal Commentary & Landmark Judgments: Section 95
Section 95 provides for compensation up to fifty thousand rupees to a defendant against whom an arrest, attachment, or temporary injunction was obtained on insufficient grounds, or where the plaintiff's suit fails and there was no reasonable ground for instituting it.
When successfully defeating a malicious ex-parte injunction or illegal attachment before judgment, immediately file an application under Section 95 praying for the maximum statutory compensation of ₹50,000.