(1)If a fine is imposed under this Act, the Gram Panchayat may order the whole or any part of the fine recovered to be applied -(a)in defraying expenses properly incurred in the case by the complainant ; and(b)in compensation for any material damage or loss caused by the offence committed.(2)If the Gram Panchayat considers that a case is flaw or frivolous or vexatious it may call upon the complainant to show cause why he should not pay compensation to the accused.(3)The Gram Panchayat shall record and consider any cause which the complainant may show under sub-section (2) and if it is as satisfied that the case was false, frivolous or vexatious, may for reason, to be recorded direct that compensation not exceeding rupees fifty shall be paid by the complainant to the accused.
