Section 358 in The Code Of Criminal Procedure, 1973
358. Compensation to persons groundlessly arrested.
(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 hundred rupees 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.
(2) In such cases, if more persons than one are arrested, the Magistrate may in like manner award to each of them such compensation not exceeding one hundred rupees as such Magistrate thinks fit.
(3) All compensation awarded under this section may be recovered as if it were fine and if it cannot be so recovered, the person by whom it is payable shall be sentenced to simple imprisonment for such term not exceeding thirty days as the Magistrate directs unless such sum is sooner paid.