Section 250(2) in The Code of Criminal Procedure, 1989 (1933 A. D.)
(2)The Magistrate shall record and consider any cause which such complainant or informant may show, and if he is satisfied that the accusation was false and either frivolous or vexatious may, for reasons to be recorded, direct that compensation to such amount not exceeding [one-half of the fine he is empowered to impose] [Substituted for certain words by Act XLII of 1956.], as he may determine, be paid by such complainant or informant to the accused or to each or any of them.(2-a) The Magistrate may, by the order directing payment of the compensation under sub-section (2), further order that, in default of payment, the person ordered to pay such compensation shall suffer simple imprisonment for a period not exceeding thirty days.(2-b) When any person is imprisoned under sub-section (2-a), the provisions of sections 68 and 69 of the Ranbir Penal Code shall, so far as may be, apply.(2-c) 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 complaint made or information given by him :Provided that any amount paid to an accused person under this section shall be taken into account in awarding compensation to such person in any subsequent civil suit relating to the same matter.