Compensation in respect of proceedings which are not bonafide 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 bonafide 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 Rs. 1,000, be paid by such plaintiff or applicant to the defendants or opponent, as the case may be.