Section 81 — Compensation for false and frivolous or vexatious information.

81. Compensation for false and frivolous or vexatious information - (1) If in
any case in which an information has been given by any person under the
provisions of sub-section (2) of section 58, the competent authority after such
inquiry as it may deem necessary, is of opinion that such information was false
and either frivolous or vexatious, it may, for reasons to be recorded in writing,
direct that compensation to such an amount not exceeding one hundred
rupees, as it may determine, be paid by such informer to the person against
whom the information was given.



(2) Before making any order for the payment of compensation, the
competent authority shall call upon the informer to show cause why he should
not pay compensation and shall consider any cause which such informer may
show.

(3)   The competent authority may, by the order directing payment of the
compensation, further order that in default of payment the person ordered to
pay such compensation shall suffer simple imprisonment for a term not
exceeding thirty days.

(4) When any person is imprisoned under sub-section (3), the
provisions of sections 68 and 69 of the Indian Penal Code, 1860, shall, so far
as may be, apply.

(5) No person, who has been directed to pay compensation under this
section, shall by reason of such order, be exempted from any civil or criminal
liability in respect of the information given by him but any amount paid as
compensation shall be taken into account in any subsequent civil suit relating
to such matter.

(6) When an order for the payment of compensation is made under
sub-section (1), the compensation shall not be paid to person ordered to receive
it before the period allowed, for the presentation of an appeal has expired or if
an appeal has been filed, till it is disposed of.