Whenever any person causes the arrest of another person by a police officer, and if it appears to the Magistrate hearing the case that there were insufficient grounds for such an arrest, the Magistrate may award compensation, not exceeding one thousand rupees, to be paid by the person responsible for the arrest to the arrested individual, to cover the loss of time and expenses incurred in the process.
In cases where multiple persons are arrested, the Magistrate may, in a similar manner, award compensation to each person, not exceeding one hundred rupees, as the Magistrate deems appropriate.
All compensation awarded under this section may be recovered as if it were a fine. If recovery is not possible, the person liable to pay the compensation may be sentenced to simple imprisonment for a term not exceeding thirty days, unless the compensation is paid sooner.