A plea of a tenant seeking protection from being evicted from a house which was being claimed for possession by a bank after its owner failed to pay off debt, has been dismissed by a city court which said it was their attempt to thwart the bank’s “valid claim”.
The court, while rejecting the application of tenant Gaurav Gupta, said it was “misuse of process of law and such frivolous litigations must be dealt with sternly and nipped in the bud itself” and slapped a cost of Rs 50,000 on him.
“I am of the considered view that the present objection application is nothing but gross abuse of the process of law and is an attempt by the respondent/borrower in collusion with the applicant to thwart the valid claim of the bank to claim the possession of the secured asset when borrower admittedly had failed in paying off the debt,” Chief Metropolitan Magistrate Satish Kumar Arora said.
The court while dismissing his plea also noted that Gupta had not filed on record any document showing his possession of the property in any manner.
“The first and the foremost reason is to be found in the objection application itself as except notarised copy of rent agreement dated August 28, 2013, applicant had not filed on record any document showing his possession of the secured asset in any manner whatsoever.
“Also, it appears quite strange that when the borrower had kept the property in question as a secured asset in respect of credit facility of more than Rs 12.27 crore with the bank vide various letters of hypothecations/loan agreements between 2009 to 2013, then why the same property would be rented out for a meager monthly rent of Rs 2,900 and that too for a period of 60 months,” the court said.
( Source – PTI )
