Judicial process cannot be a tool of Extortion: HC imposes ₹10 lakh cost on Azad Market Resident Welfare Association

Recently, the Delhi High Court has come down strongly on the misuse of its process for ulterior purposes, imposing exemplary costs of ₹10 lakh on the Azad Market Resident Welfare Association (RWA) for filing petitions aimed at extortion. Justice Mini Pushkarna, while passing the order, expressed “alarm and shock” at the petitioner’s conduct and emphasised that the judicial forum cannot be reduced to an instrument of unlawful gain.

The case was instituted by the Azad Market RWA through its General Secretary, Anil Lodhi, with the assistance of Advocate Babu Lal Gupta. After examining the record, the Court found that Lodhi and Gupta had engaged in a pattern of filing petitions concerning unauthorised constructions in areas with no connection to the RWA or its purported NGO, Green Gold Earth of World. One of the respondents, Mamta Yadav, was specifically approached for money in exchange for withdrawal of proceedings.

The Court observed, “These facts are alarming and shocking, which disclose the deplorable conduct of the petitioner in filing cases for extorting money from people, by misusing and abusing the process of this Court.” While emphasising that cases of unauthorised construction must be addressed “with an iron hand,” the Court made it clear that the integrity of judicial proceedings must be preserved and stated, “A proceeding before a Court is a solemn process for furthering the cause of justice, and not for aiding unlawful objectives of certain individuals.”

The Court directed the matter to the Bar Council of Delhi for an inquiry into whether his conduct violated professional standards, stating “The matter is referred to the Bar Council of Delhi, to consider the conduct of BL Gupta, Advocate… and requisite action that is required to be taken, with regard thereto.”

Accordingly, the Court ordered that “Cost of Rs. 10 lakh is imposed upon the petitioner, Azad Market RWA (Regd.), through its General Secretary Mr Anil Lodhi, to be paid within a period of six weeks, from today.”

In a further preventive measure, Justice Pushkarna instructed the Registry of the High Court to tag this order with any future petitions filed by the RWA, Lodhi, or the NGO, so that the Court is immediately apprised of the past misuse.