Satyarthi said the litigation and allegations were aimed at "tarnishing his image at the instigation of people who are having vested interests."
His counsel Pradeep Diwan claimed that his client was being dragged in the "frivolous" litigation which gained momentum only after he was conferred the award.
Additional District Judge (ADJ) Kamini Lau, however, was not convinced by this argument and said "work is more important. People who earn a name fall from it overnight also. So, let's not get into that."
The court, after hearing the arguments of both the parties, reserved the order on his interim application and fixed December 14 for pronouncement of its decision.
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The plaintiffs, trustees of Mukti Pratishthan Trust, in their response to Satyarthi's application, have said "unlike defendants (Satyarthi and his wife Sumedha), neither they are recipients of money in the form of salaries or otherwise nor do not have any personal monetary or material interest in the suit."
In his rejoinder to their response, Satyarthi has denied all the allegations.
The trustees in their suit against Satyarthi, who got the Nobel Peace Prize in 2014, have accused him and his wife of embezzling huge sums from the trust through maintainance of false accounts.
During arguments, his lawyer told the court that in order to check if the litigation was genuine or frivolous one, the plaintiffs, one of whom is Bandhua Mukti Morcha leader Sheotaj Singh, should be asked to deposit costs of litigation in the pre-trial stage.
The trustees, in their reply to Satyarthi's plea, have also alleged that he was holder of a "dubious" account under the Foreign Contribution Regulation Act from where huge foreign donations were routed to the Trust.
Denying this allegation, Satyarthi said in the rejoinder that all his accounts were duly audited by a Chartered Accountant of the Trust and also by income tax authorities.
He also contended that it was Sheotaj Singh who, along with activist Swami Agnivesh, indulged in activities contrary to the interest of the Trust.
The couple had earlier challenged maintainability of the suit and denied the allegations made in it.
They had alleged that the plaint was a proxy litigation filed in "collusion with their mentor Swami Agnivesh, a political figure and Arya Samaj leader who was putting pressure to grab the movable and immovable properties of the Trust".
The receiver had said the records in her possession were till 1987 while those thereafter could not be found at the earlier office of the Trust in Delhi.