High Court imposes hefty Fine of Rs.10 Lakhs each on Six for filing frivolous Appeals

To send out a strong message to people burdening Courts with frivolous litigation, the High Court of Gujarat has slapped fines of Rs 10 lakh on each of 6 litigations in a bank loan recovery cases. The total amount fined is Rs 60 lakh.

The HC penalized city-based company, Parvin Cotgin Pvt Ltd, & its promoters, who had filed appeals against recovery proceedings started by 2 banks & against the orders passed by the district magistrate after the company defaulted in returning money borrowed. The High Court observed that the borrowers had employed all tactics to delay recovery proceedings by banks. 

‘Hearing pleas is waste of time’

After hearing the appeals, the Judges said, “There are not enough words for us to express our anguish on such an approach being adopted by the appellants as the valuable time of the Court which could have been spent in resolving other pending cases & reducing pendency, has been unnecessarily wasted.” The Court recorded its displeasure at the way the company’s lawyer burdened the court by citing various judgments “without any sense of responsibility.” It cited the Supreme Court’s instructions to discourage frivolous litigation by imposing fines & ordered each of the 6 litigants to pay Rs 10 lakh as fines. 

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