(1) This section applies if—
(a) a person (the plaintiff ) starts or maintains a proceeding to which this Act applies against someone else (the defendant ) in relation to the defendant's conduct; and
(b) the court is satisfied that—
(i) the defendant's conduct is public participation; and
(ii) the proceeding is started or maintained against the defendant for an improper purpose.
(2) The court may order the plaintiff to pay to the Territory a financial penalty of not more than the amount (if any) prescribed by regulation.
(3) The financial penalty must be worked out in accordance with a regulation.
(4) The court may make an order under subsection (2)—
(a) on application by the Territory; or
(b) on its own initiative.
Note If a proceeding is for an improper purpose, the court's power to award costs of the proceeding includes power to order that the costs be assessed on an indemnity basis (see Court Procedures Rules 2006
, r 1752).