Code of Civil Procedure, 1908
(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 reasonable or probable grounds 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 pecuniar jurisdiction. (2) An order determining any such application shall bar any suit for compensation in respect of such arrest, attachment or injunction.