Section 395 BNSS 2023: Order to Pay Compensation
Section 395 of the Bharatiya Nagarik Suraksha Sanhita, 2023 empowers criminal courts, in specified circumstances, to direct that a fine or a separate amount be used to compensate persons who have suffered loss or injury because of the offence.
What Section 395 BNSS Provides
Section 395 deals with compensation that may be ordered by a criminal court while passing judgment. It covers cases in which a fine forms part of the sentence as well as cases in which the sentence does not include a fine. It also permits an Appellate Court, the High Court, or a Court of Session exercising revisional jurisdiction to make an order under this section.
- Where a fine is imposed, the whole or part of the fine recovered may be applied for specified purposes, including compensation.
- Compensation may cover loss or injury caused by the offence where it is recoverable in a civil court.
- In cases involving death, compensation may be paid to persons entitled to damages under the Fatal Accidents Act, 1855.
- In specified property offences, a bona fide purchaser may be compensated where property is restored to the person entitled to it.
- If the sentence does not include a fine, the court may still order the accused to pay compensation to the person who suffered loss or injury.
- Any compensation later awarded in a civil suit relating to the same matter must take into account compensation already paid or recovered under this section.
Text of Section 395 - Order to Pay Compensation
395. (1) When a Court imposes a sentence of fine or a sentence (including a sentence of death) of which fine forms a part, the Court may, when passing judgment, order the whole or any part of the fine recovered to be applied-
(a) in defraying the expenses properly incurred in the prosecution;
(b) in the payment to any person of compensation for any loss or injury caused by the offence, when compensation is, in the opinion of the Court, recoverable by such person in a Civil Court;
(c) when any person is convicted of any offence for having caused the death of another person or of having abetted the commission of such an offence, in paying compensation to the persons who are, under the Fatal Accidents Act, 1855, entitled to recover damages from the person sentenced for the loss resulting to them from such death;
(d) when any person is convicted of any offence which includes theft, criminal misappropriation, criminal breach of trust, or cheating, or of having dishonestly received or retained, or of having voluntarily assisted in disposing of, stolen property knowing or having reason to believe the same to be stolen, in compensating any bona fide purchaser of such property for the loss of the same if such property is restored to the possession of the person entitled thereto.
(2) If the fine is imposed in a case which is subject to appeal, no such payment shall be made before the period allowed for presenting the appeal has elapsed, or, if an appeal be presented, before the decision of the appeal.
(3) When a Court imposes a sentence, of which fine does not form a part, the Court may, when passing judgment, order the accused person to pay, by way of compensation, such amount as may be specified in the order to the person who has suffered any loss or injury by reason of the act for which the accused person has been so sentenced.
(4) An order under this section may also be made by an Appellate Court or by the High Court or Court of Session when exercising its powers of revision.
(5) At the time of awarding compensation in any subsequent civil suit relating to the same matter, the Court shall take into account any sum paid or recovered as compensation under this section.
Meaning and Scope of Section 395
1. Compensation out of fine
Sub-section (1) enables the court to use the whole or part of the fine recovered for the purposes expressly listed in the provision. The power operates when a fine is imposed either as the sentence itself or as part of the sentence.
2. Compensation even where no fine is imposed
Sub-section (3) separately authorizes the court to direct the accused to pay compensation where the sentence does not include a fine. The focus is on loss or injury caused by the act for which the accused has been sentenced.
3. Appeal safeguard
Where the case is appealable, compensation out of the fine is not to be paid until the appeal period expires or, if an appeal is filed, until the appeal is decided. This protects the position of the parties while the conviction or sentence remains open to appellate review.
4. Appellate and revisional powers
Sub-section (4) makes clear that the power is not confined to the trial court. An Appellate Court and the High Court or Court of Session exercising revision may also pass an order under Section 395.
5. Adjustment in later civil proceedings
Sub-section (5) prevents double recovery by requiring a civil court dealing with the same matter to take into account compensation already paid or recovered under Section 395.
Section 395 and Victim Compensation under Section 396
Section 395 concerns compensation ordered by the criminal court in connection with the sentence and the offence. The immediately following Section 396 BNSS separately deals with the victim compensation scheme and, among other matters, allows a trial court to recommend further compensation where the compensation awarded under Section 395 is not adequate for rehabilitation.
Official Sources
For the authoritative statutory text and commencement notification, refer to the official Government sources listed in the sidebar. The India Code text should be treated as the primary source for the enacted provision.
Updated: 12 September 2026. This page is intended for legal information and statutory reference. For case-specific advice, consult a qualified legal professional.