Bombay High Court Imposes Costs on Auto Credit Corporation for Misusing Legal Process

The Bombay High Court ruled that an occupant without recognised tenancy rights cannot assign, sublet, or create third-party interests without proper authority.

Justice Kamal Khata heard a plea by Auto Credit Corporation, which had tampered with sealed premises and obstructed testamentary proceedings.

The Court found its tenancy claim baseless, noting that rent had been unpaid since 2008 and access was gained illegally.

Terming the conduct an abuse of process, the Court held that tenancy disputes fall under the Small Causes Court’s jurisdiction and imposed ₹25 lakh costs, and directed payment to the Armed Forces Battle Casualties Welfare Fund.

[Auto Credit Corporation & Anr. v Mukesh Bansilal Shah & Ors.]