Delhi High Court - Orders
Noida Toll Bridge Company Ltd vs Municipal Corporation Of Delhi on 30 November, 2023
Author: Prateek Jalan
Bench: Prateek Jalan
$~89
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 15321/2023, CM APPL. 61460/2023, CM APPL.
61461/2023 & CM APPL. 61462/2023
NOIDA TOLL BRIDGE COMPANY LTD ..... Petitioner
Through: Mr. Rajiv Nayar, Sr. Advocate
with Mr. Raunak Dhillon, Ms. Isha
Malik, Mr. Nihaad Dewan, Ms.
Dakshita Chopra and Ms.
Dasgupta, Advocates.
versus
MUNICIPAL CORPORATION OF DELHI ..... Respondent
Through: Mr. Sanjay Poddar, Sr. Advocate
with Ms. Beenashaw N. Soni,
Advocate for MCD.
CORAM:
HON'BLE MR. JUSTICE PRATEEK JALAN
ORDER
% 30.11.2023
1. Issue notice. Ms. Beenashaw N. Soni, learned counsel, accepts notice on behalf of the Municipal Corporation of Delhi ["MCD"].
2. The writ petition concerns a request by the petitioner for permission to display outdoor advertisements on the Delhi side of the Delhi-Noida-Delhi Flyway ["DND Flyway"], and for a direction upon the MCD to take a decision with regard to entering into a new Memorandum of Understanding ["MOU"] for this purpose.
W.P.(C) 15321/2023 Page 1 of 4This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/12/2023 at 22:55:48
3. The petitioner entered into a concession agreement dated 12.11.1997 with New Okhla Industrial Development Authority ["NOIDA"] and Infrastructure Leasing and Financial Services Ltd. ["IL&FS"], for development and operation of a bridge and road network across the River Yamuna. The project has since been completed, and is known as the DND Flyway.
4. Pursuant to its entitlement to collect advertisement revenue from outdoor advertisement on the DND Flyway, the petitioner entered into MOUs with the erstwhile South Delhi Municipal Corporation and East Delhi Municipal Corporation in the years 2017 and 2019. The petitioner further licensed the advertisement rights to a third-party agency. The aforesaid license between the petitioner and the third-party agency has been terminated on 15.11.2022, and the petitioner has entered into a license agreement with a new licensee for this purpose. In furtherance of this intention, the petitioner and MCD have been in discussions and have arrived at a draft MOU, which has been placed on record as Annexure P- 38 to the writ petition. The petitioner's grievance, however, is that no final decision on the draft MOU has been taken by MCD.
5. Mr. Rajiv Nayar, learned Senior Counsel for the petitioner, submits that the delay in execution of the MOU prejudices not just the petitioner's entitlement to non-fare revenue from the concession agreements, but also deprives MCD of license fees to the tune of more than Rs.1,00,00,000/- per month, which it is likely to receive under the revenue sharing model.
6. Mr. Sanjay Poddar, learned Senior Counsel for the respondent, accepts that it is also in MCD's interest to operationalise the MOU so that it can receive its share of the revenue generated. However, he submits W.P.(C) 15321/2023 Page 2 of 4 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/12/2023 at 22:55:48 that Section 430 of the Delhi Municipal Corporation Act, 1957 ["the Act"], requires the approval of the management by the Corporation, through the Standing Committee, which has not yet been obtained as the Standing Committee has not been constituted for more than ten months. He states that the Commissioner has the power under Section 143 of the Act to grant permission for the exhibition of advertisements, but the quantum of license fee requires such approval, under Section 430 of the Act.
7. Mr. Nayar submits that approval under Section 430 of the Act is not required in the facts and circumstances of the present case, on a proper interpretation of the Act.
8. Having heard learned counsel for the parties, it appears that the continued impasse with regard to the signing of the draft MOU is not in the interest of the petitioner or of the MCD. Substantial revenues are being forgone by both. The terms of the draft MOU have already been agreed by both parties, and even according to MCD, only await sanction under Section 430 of the Act, which is not forthcoming due to non- constitution of the Standing Committee. The consequent loss of revenue to the Corporation affects the provision of essential services to the citizens of the city. In these circumstances, I am of the view that the MOU may be operationalised, subject to approval under Section 430 of the Act after constitution of the Standing Committee. Both parties agree to abide by the terms and conditions of the MOU.
9. The writ petition, alongwith pending application, is therefore, disposed of, with the direction that the petitioner and MCD may enter into and act upon the MOU in terms of the agreed draft, subject to W.P.(C) 15321/2023 Page 3 of 4 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/12/2023 at 22:55:48 approval/ ratification by the Corporation through the Standing Committee, when constituted. Any license already granted/ to be granted by the petitioner to any third-party, will also be in the same terms, and will carry a stipulation to this effect.
10. It is made clear that if the Corporation and/or the Standing Committee take a view adverse to the petitioner, the petitioner's remedy to challenge the same will remain open, including its contention that the MOU does not, in fact, require the sanction of the Corporation/Standing Committee under Section 430 of the Act.
PRATEEK JALAN, J NOVEMBER 30, 2023 SS/ W.P.(C) 15321/2023 Page 4 of 4 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/12/2023 at 22:55:48