Article text
(I) Where in any suit or proceeding, a party objects to a claim or defence on the ground that it is, in whole or in part, as against the objector, false or vexatious to the knowledge of the party by whom it has been put forward, and such claim or defence is subsequently disallowed. abandoned or withdrawn in '\'hol~ or 154 CIVIL PROCEDURE CPDE in part as against the objector, the court may, if it thinks fit and after recording its reasons for holding such claim or defence false or vexatious, make an order for the payment to the objector, by the party by whom such claim or defence was put forward, of costs by way of compensation up to an amount not exceeding five hundred dollars.
(2) No person against whom an order has been made under this Article shall, by reason thereof, be exempted from criminal proceedings under Art. 446 of the Penal Code with respect to any false statement made' by him.
(3) The amount of any compensation awarded under this Article shall be taken into account in any subsequent suit for damages or compensation with respect to the claim or defence held to be false or vexatious.
