Section 358(1) in The Code of Criminal Procedure, 1973
(1)Whenever any person causes a police officer to arrest another person, if it appears to the Magistrate by whom the case is heard that there was no sufficient ground for causing such arrest, the Magistrate may award such compensation, not exceeding [one thousand rupees] [ Substituted by Act 25 of 2005, Section 30, for "one hundred rupees" (w.e.f. 23-6-2006).], to be paid by the person so causing the arrest to the person so arrested, for his loss of time and expenses in the matter, as the Magistrate thinks fit.