Step 1: Distinguishing between types of costs.
While Section 35 of the CPC deals with general costs, Section 35(A) specifically deals with compensatory costs in respect of false or vexatious claims or defences.
Step 2: Purpose.
It empowers courts to impose monetary penalties on parties who file frivolous or dishonest suits to discourage misuse of the judicial process.
Step 3: Conclusion.
Hence, Section 35(A) provides for compensatory costs under CPC.