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SURYA KANT, UJJAL BHUYAN
NOIDA Toll Bridge Company Ltd. – Appellant
Versus
Federation of NOIDA Residents Welfare Association – Respondent
What is the validity of the Concession Agreement provisions for toll collection in light of Article 13 and Article 14 of the Contract and public policy? What are the issues surrounding maintainability, including locus standi, delay/laches, and scope of judicial review in a contract involving a State instrumentality? How to determine whether NOIDA’s delegation of levy/collection of fees to NTBCL and the formula in Annexure F contravene Article 14 and public policy, and whether they can be severed?
Key Points: - (!) High Court held Article 13 invalid and Article 14 severable; toll collection halted. - (!) - (!) Appellant NTBCL seeks reversal; CAG verification ordered; interim relief denied. - (!) - (!) Appellants argue maintainability, delegation, and policy compliance; High Court rejected these. - (!) - (!) No tender/public bidding not mandatory where public interest and feasibility considered; Article 14 deemed to conflict with public policy. - (!) - (!) Delegation of levy/collection power to NTBCL found unlawful; NOIDA lacked authority for sub-delegation under 1976 UP Industrial Area Development Act. - (!) - (!) Annexure F formula and perpetuity issues: formula deemed unreasonable; returns inflated; perpetual possibility rejected. - (!) - (!) Perpetuity and extension issues: automatic extension disputed; NOIDA consent required; concession not perpetual. - (!) - (!) CAG findings support decision that NTBCL recovered costs and profits; tolls unjustified to continue. - (!) - (!) Supreme Court dismisses SLP; confirms High Court conclusions; outdoor-ad licensing issues reserved.
JUDGMENT :
SURYA KANT, J.
1. Leave granted.
2. The NOIDA Toll Bridge Company Limited (NTBCL), has preferred the instant appeal questioning the judgement dated 26.10.2016 passed by the High Court of Judicature at Allahabad (High Court). The issue before the High Court concerned a challenge to the collection and levying of toll, as legitimised by the provisions enumerated in the Agreement dated 12.11.1997 (Concession Agreement), executed between NTBCL, the New Okhla Industrial Development Authority (NOIDA) and the Infrastructure Leasing and Financial Services Limited (IL&FS). The Concession Agreement conferred upon NTBCL the rights necessary for the implementation of the Delhi NOIDA Bridge Project or the Delhi-NOIDA Direct Flyway (DND Flyway/Project) and, in connection thereto, the collection and levying of toll.
3. The High Court has vide the impugned judgement held Articles 13 and 14 of the Concession Agreement to be bad in law and directed NTBCL to cease the imposition of user fees or toll upon commuters using the DND Flyway.
(A) FACTS
4. Having laid out the observations of the High Court in brevi, it is essential at this juncture to delve into the facts of the instant case:
The court ruled that the Concession Agreement's provisions for toll collection were invalid as NTBCL had recovered its project costs and profits, violating public policy and constitutional norms.
A concession period extension under a contract requires compliance with specific procedural conditions, and is not automatic despite recommendations from an independent engineer.
it appropriate to exercise writ jurisdiction under Article 226 in the aforesaid peculiar circumstances for the limited purpose of interim protection while relegating the parties to arbitration.
Point of Law : Commercial Vehicles - Toll plazas/posts/barriers - Collection of Toll Tax – Whether rights of petitioner is violated - Conduct of parties is governed by the Contract Agreement and the ....
Parties to a contract must adhere to its terms despite unforeseen circumstances like force majeure, and disputes arising from such a contract should be resolved through contractual mechanisms, not ju....
The interpretation of contractual obligations under the Concession Agreement indicates that the construction of additional toll lanes was excluded from maintenance obligations, contrary to the tribun....
The court upheld that materially adverse effects on toll collections justified the arbitral tribunal's conclusion of a material breach leading to terminal payments under the Concession Agreement.
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