Lawyers for Homes for Haringey - whichmanages council housing in Haringey, north London - say Barbara Fari lied abouthow badly she was hurt and should be found to be in contempt.
Mrs Fari, of Tottenham, northLondon, has disputed "exaggeration" allegations.
Mr Justice Spencer is scheduled to make a decision following a High Court hearing in London.He has said that, if found to be in contempt, Mrs Fari could be jailed, given a suspended prison sentence or fined.
More top news
The mother of a former altar boy who tried to blow up a train insisted he was 'a big softie' who didn't want to hurt anyone.
Its current five year licence comes to an end next Tuesday.
Extra armed police will guard major sporting events in London this weekend after the military was drafted in to protect key locations.