Excelsior Correspondent
SRINAGAR, Sept 24: High Court has imposed the penalty of Rs 50, 000 on a loan defaulter for concealing and distorting the facts of the case.
The Division Bench of Justice Sindhu Sharma and Justice Shahzad Azeem dismissed the plea of a loan defaulter challenging e-Auction Notice issued by the J&K Bank for liquidation of Rs. 86 lakhs of loan amount.
The bank had earlier issued a demand notice against the defaulter which he challenged by way of a petition whereby the court directed to defer the action pursuant to the notice under challenge subject to deposit of 50 percent loan amount by the petitioner-defaulter.
The court had made it clear that in case the requisite amount is not deposited within a period of four weeks, the respondent-Bank shall proceed to dispose of the secured assets in accordance with law. Since the petitioner did not deposit the requisite amount compelling the bank to proceed further in the case.
The bank accordingly issued an e-Auction notice against the defaulter. He challenged the same in another writ petition without contesting the earlier one. “The petitioner in the case on hand not only concealed and distorted the facts, but also had shown non-compliance to the order of the Court and, therefore, ex-facie this circuitous route appears to have been adopted to avoid the condition of pre-deposit as directed, therefore, petitioner’s conduct being reprehensible on account of concealment, distortions and withholding of vital facts, thus same is required to be dealt with iron hands at the threshold”, DB said.
The court recorded that it was of utmost necessity that the petitioner should approach the Court with clean hands and to disclose all the facts, whether in his favour or against him, conversely, the petitioner failed to comply with the condition of interim protection granted in pending writ petition, thus his conduct is deplorable, as he plays hide and seek with the truth, cherry-picking facts to share or suppress at his discretion, as such, same amounts to abuse of process of law, therefore, the petitioner is not entitled to the extra-ordinary, equitable and discretionary relief.
“…Accordingly, petition is dismissed with cost of Rs. 50,000 to be deposited by the petitioner before the Registry in Litigants Welfare Fund within a period of four weeks from today, for which purpose the Registry shall maintain an index and in case the cost is not deposited by the petitioner within the stipulated period of time, the Registry shall place the same before the Court for further orders”, the court concluded.
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