# Asif Khaliq v. State of U.P. & Ors

- **Citation:** (2023) 1 ILRA 230
- **Court:** High Court of Judicature at Allahabad
- **Decided:** 2023-01-11
- **Case number:** Writ-C No. 16263 of 2022
- **Bench:** Surya Prakash Kesarwani, Jayant Banerji
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/asif-khaliq-v-state-of-u-p-ors-49611
- **Pages:** 3

## Headnote

Constitution of India, 1950 - Art. 226 -
Concealment
of
material
facts
-
Petitioner claimed that he neither took
any
loan
from
nor
mortgaged
his
property nor stood as guarantor for any
one and yet, his machineries were seized
u/s
14
of
the
Securitization
and
Reconstruction of Financial Assets and
Enforcement of Security Interest Act,
2002
by
the
Additional
District
Magistrate (Finance and Revenue) -
petitioner asserted loan was taken by
his wife & that the seized machineries
etc.
belongs
to
M/s
Umbrella
Corporation - Held - petitioner neither
stated in the writ petition that the
machinery in question belongs to M/s
Umbrella
Corporation
nor
he
has
disclosed that the proprietor of M/s Zeb
Designers is his wife nor he disclosed
any GST registration of alleged M/s
Umbrella Corporation nor has filed any
document indicating registration of M/s
Umbrella
Corporation
under
the
CGST/UPGST Act or under the Factories
Act nor any proof of seized machinery
belonging to him have been filed -
petitioner concealed material facts in
the writ petition - writ petition has been
filed
making
false
averments
and
suppressing material facts - writ petition
dismissed with exemplary cost of Rs.
One lac (3, 10, 11)

Dismissed. (E-5)

List of Cases cited:

## Text

230 INDIAN LAW REPORTS ALLAHABAD SERIES
would get its own reserved/assigned area
and every factory would get its raw
material in the form of sugarcane for
crushing. The policy decision taken by the
Government for setting-up of a fresh sugar
factory, therefore, does not, in any manner,
calls for any interference by this Court. As
and when the fresh sugar factory comes in,
definitely the percentage of sale of
sugarcane to the existing sugar factories
along with the new factory would increase
and thus more sugarcane would go to sugar
factories. In this manner the local farmers
would also be encouraged to produce more
sugarcane and sell their produce to the
sugar factories. This would bring in more
prosperity in the area for the sugarcane
growers.

50. For the reasons stated above, the
writ petition stands dismissed
----------
(2023) 1 ILRA 230
ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 11.01.2023

BEFORE

THE HON'BLE SURYA PRAKASH
KESARWANI, J.
THE HON'BLE JAYANT BANERJI, J.

Writ-C No. 16263 of 2022

Asif Khaliq ...Petitioner
Versus
State of U.P. & Ors. ...Respondents

Counsel for the Petitioner:
Sri Jahangir Haider

Counsel for the Respondents:
C.S.C.

Constitution of India, 1950 - Art. 226 -
Concealment
of
material
facts
-
Petitioner claimed that he neither took
any
loan
from
nor
mortgaged
his
property nor stood as guarantor for any
one and yet, his machineries were seized
u/s
14
of
the
Securitization
and
Reconstruction of Financial Assets and
Enforcement of Security Interest Act,
2002
by
the
Additional
District
Magistrate (Finance and Revenue) -
petitioner asserted loan was taken by
his wife & that the seized machineries
etc.
belongs
to
M/s
Umbrella
Corporation - Held - petitioner neither
stated in the writ petition that the
machinery in question belongs to M/s
Umbrella
Corporation
nor
he
has
disclosed that the proprietor of M/s Zeb
Designers is his wife nor he disclosed
any GST registration of alleged M/s
Umbrella Corporation nor has filed any
document indicating registration of M/s
Umbrella
Corporation
under
the
CGST/UPGST Act or under the Factories
Act nor any proof of seized machinery
belonging to him have been filed -
petitioner concealed material facts in
the writ petition - writ petition has been
filed
making
false
averments
and
suppressing material facts - writ petition
dismissed with exemplary cost of Rs.
One lac (3, 10, 11)

Dismissed. (E-5)

List of Cases cited:

1.
United
India
Insurance
Comp.Ltd.
V.
B.Rajendra Singh & ors., JT 2000(3) SC.151

2. S.P. ChengalVaraya Naidu (dead) by L.Rs Vs.
Jagannath (dead) by L.Rs & ors., AIR 1994 SC
853

(Delivered by Hon'ble Surya Prakash
Kesarwani, J.
&
Hon'ble Jayant Banerji, J.)

1. Heard Sri Jahangir Haider, learned
counsel for the petitioner and Sri Amit
Manohar,
learned
Additional
Chief
Standing Counsel for the respondents.
1 All. Asif Khaliq Vs. State of U.P. & Ors.
231

2. This writ petition has been filed
praying for the following reliefs:-

"i. Issue a writ, order or direction
in the nature of mandamus directing the
respondent no.2 to restore the possession of
the petitioner's factory seized machine
situated at S-115 Harsha Compound, Site2, Loni Road, Industrial Area Mohan
Nagar, District Ghaziabad, in favour of the
petitioner to enable him to run his factory
smoothly."

3. Learned counsel for the petitioner
submits that the petitioner neither took any
loan from M/s Hero Fincorp Limited nor
mortgaged his property nor stood as
guarantor for any one and yet, his
machineries located at S-115, Harsha
Compound Site-2, Loni Road, Industrial
Area, Mohan Nagar, District Ghaziabad
have been seized by respondent no. 2 and
an order dated 28.12.2021 under Section 14
of the Securitization and Reconstruction of
Financial Assets and Enforcement of
Security Interest Act, 2002 has been passed
by the Additional District Magistrate
(Finance and Revenue), Ghaziabad in Case
No. 7749 of 2021 (Hero Fincorp Limited
Vs. M/s Zeb Designers and others) which is
wholly without authority of law, arbitrary
and illegal and, therefore, it deserves to be
quashed.

4. Learned counsel for the petitioner
on being questioned, states that the loan
was taken by his wife, namely, Shabih Asif
(S.Asif) who is proprietor of M/s Zeb
Designers and location of her factory is
33/312, site-2, Loni Road, Industrial Area,
Mohan Nagar, Ghaziabad. He further
states that the seized machineries etc.
belongs to M/s Umbrella Corporation
which is a proprietorship concern of the
petitioner and not of his wife or M/s Zeb
Designers.

5. We have perused the writ petition
and we find that the petitioner has neither
stated in the writ petition that the
machinery in question belongs to M/s
Umbrella Corporation nor he has disclosed
that the proprietor of M/s Zeb Designers is
his wife nor he disclosed any GST
registration of alleged M/s Umbrella
Corporation nor has filed any document
indicating registration of M/s Umbrella
Corporation under the CGST/UPGST Act
or under the Factories Act nor any proof of
seized machinery belonging to him have
been filed.

6. In the writ petition, no papers has
been filed to indicate that there actually
exist a proprietorship concern in the name
and style of M/s Umbrella Corporation. On
the contrary, on perusal of paragraph no. 11
of the writ petition, 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 e-mail
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.
232 INDIAN LAW REPORTS ALLAHABAD SERIES

7. Thus, the writ petition has been filed
making false averments and suppressing
material facts.

8. In the case of United India
Insurance Company Ltd. V. B.Rajendra
Singh and others, JT 2000(3) SC.151,
considering the fact of fraud, Hon'ble
Supreme Court held in paragraph 3 as under :

"Fraud and justice never dwell
together". (Frans et jus nunquam cohabitant)
is a pristine maxim which has never lost its
temper overall these centuries. Lord Denning
observed in a language without equivocation
that "no judegment of a Court, no order of a
Minister can be allowed to stand if it has
been obtained by fraud, for fraud unravels
everything"(Lazarus Estate Ltd. V. Beasley
1956(1)QB 702).

 (Emphasis supplied by the Court)."

9. In the case of S.P. ChengalVaraya
Naidu (dead) by L.Rs Vs. Jagannath (dead) by
L.Rs and others, AIR 1994 SC 853, the Hon'ble
Supreme Court held in para 7 as under :-

"7. The High Court, in our view, fell
into patent error. The short question before the
High Court was whether in the facts and
circumstances of this case, Jagannath obtained
the preliminary decree by playing fraud on the
court. The High Court, however, went haywire
and made observations which are wholly
perverse. We do not agree with the High Court
that "there is no legal duty cast upon the plaintiff
to come to court with a true case and prove it by
true evidence". The principle of "finality of
litigation" cannot be pressed to the extent of such
an absurdity that it becomes an engine of fraud in
the hands of dishonest litigants. The courts of law
are meant for imparting justice between the
parties. One who comes to the court, must come
with clean hands. We are constrained to say that
more often than not, process of the court is being
abused. Property-grabbers, tax-evaders, bankloan-dodgers and other unscrupulous persons
from all walks of life find the court-process a
convenient lever to retain the illegal-gains
indefinitely. We have no hesitation to say that a
person, who's case is based on falsehood, has no
right to approach the court. He can be summarily
thrown out at any stage of the litigation."

10. We find that the petitioner has
approached this Court by suppressing and
concealing material facts. Therefore, the writ
petition deserves to be dismissed with exemplary
cost.

11. For all the reasons aforestated, the writ
petition is dismissed with a cost of Rs. One lac
which shall be deposited by the petitioner with the
High Court Legal Services Committee within two
weeks from today. A copy of this order shall be
sent by the learned Standing Counsel to the
Additional District Magistrate (Finance and
Revenue), Ghaziabad within a week who shall
ensure compliance of this order.

12. Since, the financier i.e. M/s Hero
Fincorp Limited has not been made party in the
present writ petition, therefore, we direct the
Additional District Magistrate (Finance and
Revenue), Ghaziabad to inform about this order to
the aforesaid M/s Hero Fincorp Limited.
----------
(2023) 1 ILRA 232
ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 09.12.2022

BEFORE

THE HON'BLE MANOJ KUMAR GUPTA, J.
THE HON'BLE JAYANT BANERJI, J.

Writ-C No. 17717 of 2022

Smt. Krishna ...Petitioner
Versus
State of U.P. & Ors. ...Respondents