If, in any case initiated upon a complaint or information given to a police officer or Magistrate, one or more persons are accused before a Magistrate of an offence triable by a Magistrate, and the Magistrate hearing the case discharges or acquits all or any of the accused while also determining that there was no reasonable ground for making the accusation, the Magistrate may, by order of discharge or acquittal:
The Magistrate shall record and consider any explanation provided by the complainant or informant. If satisfied that there was no reasonable ground for making the accusation, the Magistrate may order compensation—up to the maximum fine he is authorized to impose—to be paid to the accused or each of them.
Additionally, the Magistrate may order that, in default of payment, the complainant or informant undergo simple imprisonment for up to 30 days. If imprisonment is imposed under this provision, sections 68 and 69 of the Indian Penal Code (45 of 1860) shall apply as far as possible.
A person ordered to pay compensation under this section shall not, by reason of this order, be exempt from any civil or criminal liability in relation to the complaint or information they provided. However, any amount paid as compensation shall be considered in any subsequent civil suit related to the same matter.
A complainant or informant ordered by a Magistrate of the second class to pay compensation exceeding one hundred rupees may appeal the order as if they had been convicted in a trial conducted by that Magistrate.
If an order for compensation is issued in a case subject to appeal, the compensation shall not be paid before the expiration of the appeal period, or if an appeal is filed, until the appeal is resolved. In cases not subject to appeal, compensation shall not be paid before one month from the date of the order.
The provisions of this section apply to both summons cases and warrant cases.
