Suppression of facts vitiates entire proceeding: HC

Srinagar, Sep 25: Underscoring that the concealment or suppression of material facts fundamentally vitiates entire proceeding, the High Court of J&K and Ladakh has held that “transparency” and honesty in pleadings are “non-negotiable”. A bench of Justice Wasim Sadiq Nargal said this while dismissing a petition by two “sub-contractors”. Even as it imposed 20,000 costs on the petitioners for suppressing the material facts.

The petitioners had sought court’s intervention to direct Hindustan Construction Company (HCC) Ltd in particular besides the authorities in J&K’s Public Works Department (R&B) to release the withheld amount of nearly Rs 24 lakh along with interest at the rate of 24% per annum for the “wrongful withholding of the payment of the “admitted liability” in connection with completion of the contract work—Uri Hydral Project II.

The HCC through its counsel however contended that the sub-contractors had not come to the Court with clean hands as they had suppressed the material facts. The earlier petition preferred by the sub-contractors, the Company said, was not withdrawn under any bonafide assurance but was dismissed as not maintainable, leaving it open for them to avail other remedies available under law.

After hearing the petitioners and perusing the record, the Court observed that the petitioners had deliberately tried to suppress the material facts with a view to mislead the Court to get a favourable order. “Once, the petitioners have suffered dismissal in the earlier round of litigation in a writ petition preferred urging similar grounds and fact, the instant petition is not maintainable,” the court said.

“…. Concealment or suppression of material facts not only undermines the judicial process but can fundamentally vitiate the entire proceeding, rendering it a nullity,” the court said as it cited the law laid down by the supreme court.

While the court observed that it is the duty of every party before the court to lay all relevant facts necessary for the fair adjudication of the matter, it said: “Failure to do so strikes at the very root of justice because the court’s ability to dispense fair and equitable relief depends on an accurate and complete factual matrix”. “When material facts are deliberately withheld or concealed, the court is misled and the adversarial process is compromised. This not only results in injustice but also erodes public confidence in the legal system”

The Court said the Supreme Court has been unequivocal in stating that the omission of material facts is not a mere procedural lapse but a serious misconduct and such conduct can lead to the dismissal of petitions even when they may be meritorious on other grounds.“Litigants who take liberties with the truth or procedural norms should be made aware of the severe consequences, including the imposition of exemplary costs, to deter such conduct and maintain public confidence in the administration of justice,” it said.

The Court noted that the petitioners instead of availing other remedies available under law had chosen to file the instant petition by way of 2nd round of litigation urging similar grounds and facts and that too by suppressing the material facts and with a view to mislead this Court to get a favourable order.”

The Court concluded that the petitioners had abused the process of Court by filing the instant petition and it was a fit case, where the exemplary costs could be imposed with a view to deter such unscrupulous litigants to abuse the process of Court. It accordingly imposed the costs on the petitioners.