Award of compensatory costs in certain cases
132. (1) Any Claims Tribunal adjudicating upon any claim for compensation under this Ordinance may, in any case, where it is satisfied for reasons to be recorded by it in writing that-
(a) the policy of insurance is void on the ground that it was obtained by representation of fact which was false in any material particular, or
(b) any party or insurer has put forward a false or vexatious claim or defence, such as Claims Tribunal may make an order for the payment by the party who is guilty of misrepresentation, by whom such claim or defence has been put forward, of special costs by way of compensation to the insurer or, as the case may be, to the party against whom such claim or defence has been forward:
Provided that in case of void and defective policy, the Claims Tribunal may make an order for payment by the insurer to the party affected.
(2) No person or insurer against whom an order has been made under this section shall, by reason thereof, be exempted from any criminal liability in respect of such misrepresentation, claim or defence as is referred to in sub-section (1).
(3) Any amount awarded by way of compensation under this section in respect of any misrepresentation, claim or defence shall be taken into accounts in any subsequent suit for damages, for compensation in respect of such misrepresentation, claim or defence.