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2016 Supreme(All) 1285

ALLAHABAD HIGH COURT
BEFORE : ARUN TANDON AND MRS. SUNITA AGARWAL, JJ.
FEDERATION OF NOIDA RESIDENTS WELFARE ASSOCIATION .....Petitioner
Versus
NOIDA TOLL BRIDGE COMPANY LTD. AND OTHERS ....Respondents
(Public Interest Litigation (PIL) No. 60214 of 2012, decided on 26th October, 2016)

Advocates:
Counsel :
Ranjit Saxena and Deepak Saxena for the Petitioner; C.S.C, A.S.G.I.(2012/5640), Ajay Bhanot, Shivam Saxena and Shivam Yadav for the Respondents.

Headnote:U.P. Industrial Area Development Act, 1976—Sections 19, 6, 11, 19 and 6-A—New Okhla Development Area (Levy of Infrastructure Fee) Regulations, 1998—Public Interest Litigation—Toll—User fee—Power to levy fee—Government action must not be arbitrary or capricious, but must be transparent based on principles which meets the test of reasons and relevance—Judicial Review in contractual matter where State is party—IL&FS had only negotiated with the NOIDA authority and succeeded in contract being awarded to a private company under the agreement but in a manner which is unfair—Award of contract itself was hit by Article 14 of the Constitution—However, Concessionaire has performed its part of obligation and has completed the construction of Toll Bridge—Power to levy fee has been delegated to NOIDA Authority in discharge of its functions under Section 19 of 1976 Act—Sub-delegation of power to levy and thereafter collect the toll/user fee upon a private company namely the Concessionaire under the Concession Agreement is bad—Regulations 1998 framed by NOIDA Authority to justify such delegation runs contrary to Section 6-A read with Section 19 of the Act—Offending clauses can be severed from rest of agreement without affecting the contract as a whole and leaving the Concessionaire and Noida Authority to perform their part of contract—Concessionaire will not be entitled to realise User fee from Users/Commuters of the NOIDA Toll Bridge—Right to levy and collect User fee from the commuters as conferred upon the Concessionaire under the Concession Agreement suffers from excessive delegation and contrary to 1976 Act—Method of calculation of Total Project Cost and appropriation of User fee collection held arbitrary—Selection of Concessionaire also violative of Article 14—Interference with Concessionaire agreement is warranted in exercise of powers of Judicial Review under Article 226—PIL held maintainable. [Paras 174 to 314]

       Result; Petition Allowed.

       

JUDGMENT

Hon’ble Mrs. Sunita Agarwal, J.—Heard Sri Ranjit Saxena, learned counsel assisted by Sri Deepak Saxena, learned Advocate for the petitioners, Sri P.H. Parikh and Sri Ajay Bhanot learned Senior Advocates assisted by Sri Shashank Shekhar Mishra learned counsel for respondent No. 1 namely Noida Toll Bridge Company, Sri C.B. Yadav learned Senior Advocate assisted by Sri Shivam Yadav learned counsel for the respondent No. 2 namely the NOIDA, Sri Piyush Joshi learned counsel for the Infrastructure Leasing and Financial Services Limited (IL&FS), respondent No. 9 and Sri C.B Yadav, learned Additional Advocate General has also appeared on behalf of the State and is assisted by Sri Shashank Shekhar Singh, learned Additional Chief Standing Counsel.

2. This is a public interest litigation challenging the levy and collection of toll in the name of User fee by NOIDA Toll Bridge Company from the Commuters for using the Eight-lane DND Flyway having stretch of 9.2 km. from NOIDA to Delhi.

3. The petitioner Federation Of NOIDA Residents Welfare Association is a society duly registered under the Societies Registration Act, 1860. The aims and objects of the society are to look after the welfare of the denizens of NOIDA, by espousing their cause before the authorities and to ensure that they are provided required Civic amenities and other developments in and around NOIDA.

4. New Okhla Industrial Development Authority (hereinafter referred to as “NOIDA”) has been established under the U.P. Industrial Area Development Act, 1976 for planned development of the area within the territorial limits of NOIDA including roads and bridges etc. for the commuters.

5. ‘NOIDA’ in furtherance of its obligation to provide road communication facilities to the denizens made an arrangement with a private company namely NOIDA Toll Bridge Company Limited (hereinafter referred as “NOIDA Toll Company” or the “Concessionaire”) for construction of bridge (DND flyway) under Build-Own-Operate-Transfer (“BOOT”) model. The NOIDA Toll Company is stated to be promoted by another Company known as Infrastructure Leasing & Financial Services Limited (in short referred as “IL&FS”).

6. Initially it was charging toll @ Rs. 8/- per entry of car which was later on hiked to Rs. 22/- and then to Rs. 25/- per car w.e.f. 9.2.2012. Similarly two wheelers are charged Rs. 12/- per vehicle.

7. The members of petitioner’s Association who are using DND Flyway being aggrieved by the demand of the User fee made inquiry and it then transpired that the NOIDA Authority had authorised the private Company to impose and realise User fee under a Concession Agreement with the said Company known as NOIDA Toll Bridge Company. Under the said agreement, NOIDA Toll Company has been given power to increase the toll charges from time to time. Hence this Public Interest Litigation.

8. The parties have been heard at length, material on record has been examined, in detail. The facts on record of the present Public Interest Litigation (PIL) are :

9. A Memorandum of Understanding (MOU) for Yamuna Bridge Project was arrived at on April 7' 1992 between New Okhla Industrial Development Authority (herein after referred to as ‘NOIDA’), Delhi Administration (DA) and Infrastructure Leasing & Financial Services Limited (hereinafter referred to as ‘IL&FS’) a public financial company to establish an additional toll-way bridge with necessary facilities in the upstream of Okhla wayer for easier and fuel efficient movement of NOIDA area population to the southern part of Delhi and vice-versa. It was agreed that up-gradation of the existing corridor by providing additional lanes shall be an integral part of the Yamuna Bridge Project.

10. The IL&FS was to be the promoter and developer of the Project. The function of IL&FS was to mobilize financial resources both from Domestic Capital Market as well as International Financ


































































































































































































































































































































































































































































































































































































































































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