Allahabad High Court Imposes Rs. 1 Lakh Cost On Man For Filing Plea Making False Averments, Suppressing Material Facts

The bench of Justice Surya Prakash Kesarwani and Justice Jayant Banerji directed the petitioner (Asif Khaliq) to deposit the cost with the High Court Legal Services Committee within two weeks.

The petitioner had moved the Court seeking possession of the factory machines, belonging to his firm M/s Umbrella Corporation, seized by respondent no. 2.

It was his case that the machines were seized even when he neither took any loan from M/s Hero Fincorp Limited nor mortgaged his property nor stood as guarantor for anyone.

On being questioned, the Counsel for the petitioner submitted that the loan was in fact taken by the wife of the petitioner, who is the proprietor of M/s Zeb Designers, which has no links with M/s Umbrella Corporation, a firm owned by the petitioner.

Against the backdrop of these facts, the Court, at the outset, perused the writ petition and found that the petitioner did not state that the machinery in question belongs to M/s Umbrella Corporation. He also did not disclose that the proprietor of M/s Zeb Designers belongs to his wife.

Further, the Court also noted that no registration details of the alleged M/s Umbrella Corporation had been filed, and no proof of seized machinery belonging to him had been filed. In fact, no papers had been filed to indicate that there actually exists a proprietorship concern in the name and style of M/s Umbrella Corporation

The Court also noted that in the writ petition, it was stated that the petitioner filed representations regarding the seizure of machines with the Additional District Magistrate (Finance and Revenue), however, the said representation was sent by one Asif Zaidi, who happens to be the son of the petitioner.

“…we find that the petitioner has stated to have made representations dated 28.4.2022 and 2.5.2022 to the Additional District Magistrate (Finance and Revenue), Ghaziabad and copy whereof has been filed as Annexure nos. 1 and 2. Perusal of Annexure-2 to the writ petition shows that it was sent by Asif Zaidi through email and as per schedule-1 annexed to the deed of guarantee appearing at page 84 of the personal affidavit of Additional District Magistrate (Finance and Revenue) dated 10.1.2023 who is the son of the petitioner and his full name is Ashar Asif Zaidi and the petitioner's full name of Asif K. Zaidi. Learned counsel for the petitioner has stated that full name of petitioner is Asif Khalik Zaidi. The petitioner has very conveniently concealed all these material facts in the writ petition,” the Court said.

Against this backdrop, referring to Apex Court’s rulings in the case of United India Insurance Company Ltd. V. B.Rajendra Singh and others, JT 2000(3) SC.151 and S.P. ChengalVaraya Naidu (dead) by L.Rs Vs. Jagannath (dead) by L.Rs and others, AIR 1994 SC 853, the Bench stressed upon the requirement of a petitioner to come to court with clean hands.

Hence, finding that the petitioner approached the Court by suppressing and concealing material facts, the Court dismissed the plea by imposing costs of Rs. 1 Lakh. \

The Court also directed that M/s Hero Fincorp Limited be informed of the order, since it had not been impleaded in the matter as a party.

Case title - Asif Khaliq vs. State Of U.P. And 2 Others [WRIT - C No. - 16263 of 2022]

Case Citation: 2023 LiveLaw (AB) 16

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