Neutral Citation Number is 2023:DHC:2466-DB

LPA 145/2021

Page 1 of 32

*

IN THE HIGH COURT OF DELHI AT NEW DELHI

Date of decision: 10^th APRIL, 2023

IN THE MATTER OF:

+

LPA

145/2021

&

CM

APPLs.

13983/2021,

13984/2021,

13986/2021,25149/2021, 25150/2021, 32156/2021, 32157/2021,

32159/2021,

40902/2021,40903/2021,

1728/2022,

1729/2022,

1730/2022, 4872/2022, 12650/2022

MEP INFRASTRUCTURE DEVELOPERS LTD ..... Appellant

Through:

Mr. Dushyant Dave, Senior Advocate

with Mr.Rajiv Shankar Dvivedi, Mr.

Mahesh Agarwal, Mr. Karan Luthra,

Ms. Aarashi Tiku, Mr. Akshat and

Mr. Rishabh Jain, Advocates

versus

SOUTH DELHI MUNICIPAL CORPORATION AND OTHERS

..... Respondents

Through:

Mr. Sanjay Vashishtha, Standing

Counsel for MCD with Mr.Phagun

Kalra, Mr.Vishal Kumar, Advocates

CORAM:

HON’BLE THE CHIEF JUSTICE

HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD

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

Digitally Signed

By:RAHUL SINGH

Signing Date:11.04.2023

19:17:58

Signature Not Verified

Neutral Citation Number is 2023:DHC:2466-DB

LPA 145/2021

Page 2 of 32

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.

Digitally Signed

By:RAHUL SINGH

Signing Date:11.04.2023

19:17:58

Signature Not Verified

Neutral Citation Number is 2023:DHC:2466-DB

LPA 145/2021

Page 3 of 32

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

Comm