The main legal point established in the judgment is that contractual disputes between the State and private parties should be resolved in accordance with the terms of the contract and the laws relating to contracts. The judgment also emphasizes the importance of compliance with fundamental rights and natural justice in contractual matters, and the discretion of the Court to exercise writ jurisdiction in specific circumstances.

JUDGMENT

Subramonium Prasad, J.

1. The instant Letters Patent Appeal arises out of Judgment dated 09.04.2021 passed in W.P.(C) No. 2241/2020 wherein the Ld. Single Judge dismissed the Writ Petition and held that the Appellant herein cannot invoke the extraordinary writ jurisdiction of the High Court under Article 226 of the Constitution of India and the disputes arising between the parties ought to be resolved in accordance with the Contract Act and in appropriate civil proceedings before the appropriate Court.

2. Shorn of Details, the facts necessary for adjudication of the present dispute are as under:

i. On 21.07.2017, the Respondent Corporation floated a tender bearing NIT No. ADC/TT/HQ/2017/D-311, inviting bids from interested parties to collect Toll Tax &Environment Compensation Charge (ECC) from specified commercial vehicles at the 124 toll plazas/posts/barriers bordering Delhi.

ii. The Appellant submitted its bid for the aforesaid NIT and was declared as the successful bidder and the Appellant's bid was accepted by way of a Letter of Intent dated 19.09.2017.

iii. Thereafter, on 28.09.2017, the Appellant and Respondent Corporation entered into a Toll Tax & ECC Collection Agreement (hereinafter referred to as the "Contract Agreement").

iv. It is stated that as per the terms of the Contract Agreement, the Appellant was entitled to collect penalty from specified commercial vehicles evading toll tax by using free lanes. The Appellant wrote multiple letters to the Respondent Corporation informing them of several vehicles which are using free lanes to avoid paying toll tax, and that the Appellant is unable to deploy its officials on the free lanes to collect toll tax and penalty

v. On 27.05.2018, the Eastern Peripheral Expressway was opened for general public use.

vi. Thereafter, on 20.07.2018, a strike was called by the All India Motor Transport Congress. The Appellant, vide letter dated 23.07.2018 claimed that the strike amounted to a force majeure event and on 29.09.2018 claimed a set off of Rs. 5.96 Crores from the toll tax payable by the Appellant.

vii. It is stated that on 08.11.2018, the Respondent Corporation issued a letter to stop the entry of heavy and medium goods vehicles from 11:00PM on 08.11.2018 till 11.11.2018.

Thereafter, on 12.11.2018, the Respondent Corporation issued a letter to the Appellant to allow the entry of trucks into Delhi but not to collect Toll Tax and ECC from them so they are not forced to stop. Subsequently, on 15.11.2018, the Appellant submitted a claim for the loss suffered by it on account of restrictions on entry of vehicles in Delhi as well as restrictions on collection of Tax and ECC.

viii. Thereafter, on 16.01.2019, a meeting of the High-Level Committee of the Respondent Corporation took place wherein it was deliberated that the traffic entering Delhi had reduced due to opening of the Eastern & Western peripheral Expressways and a decision was taken to appoint a Surveyor to assess the reduction in traffic count. Accordingly, on 13.02.2019, a tender was floated for conducting the traffic survey and M/s Samarth Softech Solution Ltd. was awarded the work on 08.03.2019. It is stated that the survey was conducted in April 2019 and as per the report submitted, the expected average weekly estimated revenue for all 124 MCD entry points was Rs. 19.25 crores taking into consideration all aspects.

ix. It is stated that between 13.08.2019 and 26.08.2019, another survey was conducted by Tescidel India Pvt. Ltd. who were appointed by the Respondents. As per the report submitted for this survey, a daily average of 35,315 vehicles were evading the payment of toll tax by using free lanes. The survey calculated the estimated amount of evasion per day at Rs. 36,81,900/-.

x. During this time, the Appellant raised various other claims of money from the Respondent Corporation and in response, a meeting of the High-Level Committee of the Respondent Corporation took place on 17.10.2019 which rejected the claims of t