Section 36. Compensation in respect of proceedings which are not bona fide or are false, frivolous or vexatious.

If the court finds that any suit, proceeding or application instituted or made before it is not instituted, or made, bona fide or is false, frivolous or vexatious, the court may, after hearing the plaintiff or applicant and for reasons to be recorded, order that compensation, not exceeding two thousand rupees, be paid by such plaintiff or applicant to the defendant or opponent, as the case may be.