Delhi High Court
Garg Construction Company vs North Delhi Municipal ... on 25 January, 2023
Neutral Citation Number : 2023/DHC/000587
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 116/2021 & connected matters
Reserved on : 25.11.2022
Date of Decision : 25.01.2023
IN THE MATTER OF:
W.P.(C) 116/2021
GARG CONSTRUCTION COMPANY ..... Petitioner
W.P.(C) 483/2021
MS BUILDERS ..... Petitioner
W.P.(C) 492/2021
BARAHI CONSTRUCTION ..... Petitioner
W.P.(C) 2140/2021
M/S KRISHNA CONSTRUCTION ..... Petitioner
W.P.(C) 2190/2021
M/S KALRA CONST. CO ..... Petitioner
W.P.(C) 2198/2021
M/S RAKESH BANSAL ..... Petitioner
W.P.(C) 2202/2021
M/S ANKUR GUPTA ..... Petitioner
W.P.(C) 2411/2021
M/S SHIVANSH CONSTRUCTION ..... Petitioner
W.P.(C) 2412/2021
M/S BANSAL CONSTRUCTION ..... Petitioner
W.P.(C) 2413/2021
M/S M K TRADERS ..... Petitioner
W.P.(C) 2704/2021
M/S GUPTA RADHEY SHYAM ..... Petitioner
W.P.(C) 116/2021 & other connected matters Page 1 of 19
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
W.P.(C) 2705/2021
M/S S.V CONSTRUCTION CO. ..... Petitioner
W.P.(C) 4859/2021
MS. MONIKA ..... Petitioner
W.P.(C) 5444/2021 and CM APPLs.16870-71/2021
M/S DEVANSH CONSTRUCTION ..... Petitioner
W.P.(C) 5445/2021 and CM APPLs.16872-73/2021
M/S A.A CONSTRUCTION ..... Petitioner
W.P.(C) 5446/2021 and CM APPLs.16874-75/2021
M/S MUDIT CONSTRUCTION ..... Petitioner
W.P.(C) 6952/2021
ANIL KUMAR BHARDWAJ ..... Petitioner
W.P.(C) 7276/2021
ATUL GUPTA ..... Petitioner
W.P.(C) 7280/2021
LALITA GARG ..... Petitioner
W.P.(C) 8910/2021
M/S PREM BROS THROUGH ITS PROPRIETOR.
SHRI PREM SINGH BHARDWAJ ..... Petitioner
W.P.(C) 9809/2021
M/S KHAN ENTERPRISES THROUGH ITS
PROPRIETOR. MR.ASLAM KHAN ..... Petitioner
W.P.(C) 9814/2021
M/S J.S SETHI AND SONS THROUGH ITS
PROPRIETOR SHRI G.S SETHI ..... Petitioner
W.P.(C) 9871/2021
M/S MAHESWARI CONST. CO. THROUGH
ITS PROPRIETOR. SHRI ANIL MAHESWARI ..... Petitioner
W.P.(C) 116/2021 & other connected matters Page 2 of 19
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
W.P.(C) 9872/2021
M/S RAKESH GUPTA THROUGH ITS
PROPRIETOR SH. RAKESH GUPTA ..... Petitioner
W.P.(C) 9873/2021
M/S ISLAMUDDIN THROUGH ITS
PROPRIETOR MR. ISLAMUDDIN ..... Petitioner
W.P.(C) 9874/2021
MIS DEEPAK CONST. CO. THROUGH
ITS PROPRIETOR SHRI DEEPAK ..... Petitioner
W.P.(C) 9876/2021
M/S SUNSHINE CONST. CO. THROUGH
ITS PROPRIETOR SHRI SUMIT KUMAR ..... Petitioner
W.P.(C) 9885/2021
M/S RASHTRIY A CONST. CO. THROUGH
ITS PROPRIETOR SHRI RAJINDER KUMAR ..... Petitioner
W.P.(C) 9887/2021 & CM APPL. 37508/2022, 37511/2022
M/S BALJEET SINGH SATENDER PARKASH
AND ASSOCIATES THROUGH ITS
PROPRIETOR SHRI BALJEET SINGH ..... Petitioner
W.P.(C) 9889/2021
M/S ASHOK KUMAR GUPTA THROUGH
ITS PROPRIETOR. SHRI ASHOK KUMAR GUPTA ..... Petitioner
W.P.(C) 9890/2021
M/S MOHD RASHID THROUGH ITS
PROPRIETOR MOHD. RASHID ..... Petitioner
W.P.(C) 9891/2021
M/S SAJID KHAN THROUGH ITS PROPRIETOR
MR. MOHD. SAJID ..... Petitioner
W.P.(C) 9907/2021
M/S VIKAS DANDONA CONST. CO. THROUGH
ITS PROPRIETOR SHRI VIKAS DANDONA ..... Petitioner
W.P.(C) 116/2021 & other connected matters Page 3 of 19
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
W.P.(C) 10501/2021
M/S M K GUPTA ..... Petitioner
W.P.(C) 10503/2021
M/S ARPIT ELECTRIC CO ..... Petitioner
W.P.(C) 10504/2021
M/S M. CHHIBBA AND CO ..... Petitioner
W.P.(C) 10605/2021
M/S NARENDER SINGH DHANKAR ..... Petitioner
W.P.(C) 10606/2021
M/S DHANKAR CONSTRUCTIONS ..... Petitioner
W.P.(C) 10607/2021
M/S VIJENDER BHARDWAJ ..... Petitioner
W.P.(C) 11285/2021
M/S VINOD COMPANY (THROUGH ITS
PROPRIETOR MR. VINOD KUMAR GUPTA) ..... Petitioner
W.P.(C) 11286/2021
DEEPAK KUMAR ..... Petitioner
W.P.(C) 11287/2021
M/S R.S. CONSTRUCTIONS (THROUGH ITS
PROPRIETOR MR. RAMESH YADAV) ..... Petitioner
W.P.(C) 11314/2021
M/S SUMIT INFRA (THROUGH ITS PROPRIETOR
MR. SUMIT GUPTA) ..... Petitioner
W.P.(C) 11438/2021
M/S MONU ENTERPRISES ..... Petitioner
W.P.(C) 11440/2021
M/S SUDHIR CONSTRUCTION ..... Petitioner
W.P.(C) 11449/2021
M/S KAY CONSTRUCTION CO ..... Petitioner
W.P.(C) 116/2021 & other connected matters Page 4 of 19
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
W.P.(C) 11451/2021
M/S SAMEER ENTERPRISES ..... Petitioner
W.P.(C) 11456/2021
M/S NA CONSTRUCTION ..... Petitioner
W.P.(C) 11477/2021
M/S DEEPIKA ENTERPRISES ..... Petitioner
W.P.(C) 11728/2021 & CM APPL. 36247/2021
M/S NARENDER CONSTRUCTION ..... Petitioner
W.P.(C) 11731/2021
M/S AKASH CONSTRUCTION ..... Petitioner
W.P.(C) 11771/2021
M/S PRATEEK CONST CO. ..... Petitioner
W.P.(C) 12243/2021
M/S HARDIT SINGH KOCHHAR ..... Petitioner
W.P.(C) 12244/2021
M/S KOCHHAR CONSTRUCTION ..... Petitioner
W.P.(C) 12245/2021
M/S ANUBHAV GUPTA ..... Petitioner
W.P.(C) 12248/2021
M/S KAYS BUILDCON ..... Petitioner
W.P.(C) 12274/2021
M/S JAPNEET BUILDERS ..... Petitioner
W.P.(C) 12246/2021
BHARAT CONST ..... Petitioner
W.P.(C) 14959/2021
M/S LAMBA BROTHERS THROUGH ITS PROP ..... Petitioner
W.P.(C) 14989/2021
M/S AGGARWAL ASSOCIATES ..... Petitioner
W.P.(C) 116/2021 & other connected matters Page 5 of 19
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
W.P.(C) 15152/2021
M/S NEW LAMBA BROTHERS ..... Petitioner
W.P.(C) 1336/2022
M/S LANDSCAPE CONST ..... Petitioner
W.P.(C) 1361/2022
M/S MOHAN LAL AND CO ..... Petitioner
W.P.(C) 1386/2022
M/S PREM PRAKASH GUPTA AND CO ..... Petitioner
W.P.(C) 1387/2022
M/S DEEPAK CONST CO ..... Petitioner
W.P.(C) 1456/2022
M/S PUNEET CONST CO ..... Petitioner
W.P.(C) 1457/2022
M/S PUNEET ENTERPRISES ..... Petitioner
W.P.(C) 2511/2022
M/S NEERAJ GUPTA ..... Petitioner
W.P.(C) 2938/2022
ANURAG RANA ..... Petitioner
W.P.(C) 3419/2022
M/S G.R. CONSTRUCTIONS ..... Petitioner
W.P.(C) 4299/2022
PREM MEHTA ..... Petitioner
W.P.(C) 4350/2022
SRK CONSTRUCTION COMPANY ..... Petitioner
W.P.(C) 5032/2022
M/S R.K. TUSHIR CONSTRUCTION COMPANY ..... Petitioner
W.P.(C) 5486/2022
M/S GAURAV MEHTA ..... Petitioner
W.P.(C) 116/2021 & other connected matters Page 6 of 19
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
W.P.(C) 6141/2022
M/S JATIN CONSTRUCTION ..... Petitioner
W.P.(C) 6781/2022
M/S PRADEEP KUMAR ..... Petitioner
W.P.(C) 6796/2022
M/S JAGDAMBA TRADING CO ..... Petitioner
W.P.(C) 6842/2022 & CM APPL. 20835/2022
M/S VINOD KUMAR THROUGH ITS PROP.
VINOD KUMAR ..... Petitioner
W.P.(C) 7013/2022 and CM APPL. 21490/2022
M/S AMIT SEHRAWAT THROUGH ITS
PROP. AMIT SEHRAWAT ..... Petitioner
W.P.(C) 9747/2022
GUPTA ENGINEERING CO ..... Petitioner
W.P.(C) 9924/2022
K K ENTERPRISES ..... Petitioner
W.P.(C) 9966/2022
SHREE BUILDERS ..... Petitioner
W.P.(C) 10590/2022
M/S RAJ KUMAR KESAR ..... Petitioner
W.P.(C) 10597/2022
M/S SANJEEV BUILDERS ..... Petitioner
W.P.(C) 10598/2022
M/S ASHOK KUMAR BAHIL ..... Petitioner
W.P.(C) 10605/2022
M/S SHRI SHIV SHANKAR CONST CO. THROUGH
ITS PROP. USHA ARYA ..... Petitioner
W.P.(C) 116/2021 & other connected matters Page 7 of 19
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
W.P.(C) 10606/2022
M/S ARYA AND CO. THROUGH ITS PROP.
SATYA PAL SINGH ARYA ..... Petitioner
W.P.(C) 12051/2022
M/S HARPREET ARORA THROUGH ITS PROP.
HARPREET ARORA ..... Petitioner
W.P.(C) 12066/2022
M/S SARAB CONSTRUCTIONS THROUGH ITS
PROP. MITALI ARORA ..... Petitioner
W.P.(C) 12070/2022
M/S ARORA CONSTRUCTIONS ..... Petitioner
W.P.(C) 12108/2022
M/S TANYA CONSTRUCTIONS ..... Petitioner
W.P.(C) 12111/2022 and CM APPL. 36196/2022
M/S KAPIL CONSTRUCTION ..... Petitioner
W.P.(C) 12127/2022
KARTAR BUILDERS ..... Petitioner
W.P.(C) 13020/2022
M/S AIPL AND PPMPPL (JV) ..... Petitioner
W.P.(C) 13136/2022 and CM APPL. 41992/2022
NITIN GUPTA ..... Petitioner
W.P.(C) 13773/2022
VIKAS BANSAL ..... Petitioner
W.P.(C) 12157/2022
M/S ANSH CONSTRUCTION ..... Petitioner
Versus
NORTH DELHI MUNICIPAL
CORPORATION AND OTHERS ..... Respondents
MUNICIPAL CORPORATION OF DELHI
W.P.(C) 116/2021 & other connected matters Page 8 of 19
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
AND ANR ..... Respondents
GOVT. OF NCT OF DELHI AND ANR. ..... Respondents
Present : Mr. Sandeep Agarwal, Sr.
Advocate with Mr. Sandeepan
Pathak, Mr. Manish Kumar
Srivastava, Mr. Sagar Arora, Mr.
Mayank Goel, Mr. Tarun Diwan,
Ms. Pyari, Ms. Himanshi
Bhardwaj, Mr. Vasu Bhardwaj,
Mr. Robin Bhardwaj, Ms.
Vandana Bhanot, Mr. Khwaja
Siddiqui, Mr. Ashwani Kumar,
Mr. Ramneek Singh, Ms. Jyoti
Nambiar and Mr. V.P. Rana,
Advocates for the petitioners.
Mr. Kunal Vajani and
Mr. Siddhant Nath, Standing
Counsels for MCD with Mr.
Utkarsh Kulvi, Advocate, for the
respondents.
CORAM:
HON'BLE MR. JUSTICE MANOJ KUMAR OHRI
JUDGMENT
MANOJ KUMAR OHRI, J.
1. By way of the present batch of petitions filed under Article 226 of
the Constitution of India, the petitioners have sought release of payments
due and payable to them under the bills prepared and approved by
respective Assistant Engineer(s) and counter-signed by Junior
Engineer(s) of the erstwhile North Delhi Municipal Corporation, East
Delhi Municipal Corporation and South Delhi Municipal Corporation
(hereinafter, collectively referred to as 'Corporation') against the works
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
executed by the petitioners. The petitioners have also claimed interest @
24% per annum from the date of approval of the bills.
2. As the issue raised in all petitions is the same, they have been
taken up for consideration together and are being disposed of accordingly
vide a common judgment. With the consent of the parties, W.P.(C)
116/2021 is being treated as the lead case.
3. A perusal of the petitions would show that the petitioners claim
themselves to be registered contractors engaged with the Corporation for
carrying out development work in various municipal wards. They are
aggrieved by the failure of the Corporation in making payments due
towards them for execution of tender works, and reportedly in some
cases, the bills have remained pending for reimbursement by the
Corporation since the year 2014-15.
4. Learned counsels for the petitioners submitted that the Corporation
has not released the due payments, ostensibly relying on Clauses 7 and 9
of the General Conditions of Contract. It was also submitted that despite
repeated reminders, the Corporation has failed to take requisite action
and the same has resulted in a situation where the petitioners have been
forced to take loan from the market, on interest, for executing others'
tenders.
To supplement the petitioners' contentions, a summary of
outstanding dues/arrears has been placed on record depicting the
principal amounts and interests claimed by them. The summary of
claimed dues towards principal amounts is extracted below:-
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
Summary of Outstanding Dues/ Arrears
S. Writ Title of Writ Petition Outstanding Amount Principal Outstanding
No. Petition No. Principal received Amount
Amount of during [In Rupees]
Bills claimed pendency C= (A-B)
in the Writ of Writ
Petition (In Petition,
Rupees) if any. [In
(A) Rupees]
(B)
1 W.P. (C) Garg Construction Co. 6,20,42,493 8,71,701 6,11,70,792
116/2021 vs. NDMC
2 W.P. (C ) Gaurav Mehtan VS. 2,04,85,656 10,22,238 1,94,63,418
5486/2022 NDMC
3 W.P. (C ) K K Enterprises VS. 21,27,856 NIL 21,27,856
9924/2022 NDMC
4 W.P. (C ) Shree Builders VS. 51,58,050 9,13,927 42,44,123
9966/2022 NDMC
5 W.P. (C ) Neeraj Gupta VS. 97,70,963 NIL 97,70,963
2511/2022 NDMC
6 W.P. (C ) G. R. Constructions 1,23,42,184 NIL 1,23,42,184
3419/2022 VS. NDMC
7 W.P. (C ) Prem Mehta VS. NDMC 59,49,751 6,99,167 52,50,584
4299/2022
8 W. P. (C ) SRK Construction VS. 24,73,490 NIL 24,73,490
4350/2022 NDMC
9 W.P. (C ) R.K. Tushir Const. VS. 2,02,58,092 32,30,706 1,70,27,386
5032/2022 NDMC
10 W. P. (C ) Jatin Const. VS. NDMC 1,75,27,385 19,71,669 1,55,55,716
6141/2022
11 W.P. (C ) Gupta Engineering Co 27,94,916 NIL 27,94,916
9747/2022 VS. NDMC
12 W.P. (C ) M S Builders VS. 1,68,19,438 17,39,039 1,50,80,399
483/2021 NDMC
13 W.P. (C ) BarahiConsts.VS. 4,52,88,898 52,23,226 4,00,65,672
492/2021 NDMC
14 W.P. (C ) Krishna Builders VS. 1,37,95,533 7,25,429 1,30,70,104
2140/2021 NDMC
15 W.P. (C ) Kalra Const. VS. 3,59,59,729 16,72,298 3,42,87,431
2190/2021 NDMC
16 W.P (C ) Rakesh Bansal VS. 5,69,61,996 82,43,095 4,87,18,901
2198/2021 NDMC
17 W.P. (C ) Ankur Gupta VS. 2,16,15,005 4,12,830 2,12,02,175
2202/2021 NDMC
18 W.P. (C ) Shivansh Const. VS. 89,77,511 NIL 89,77,511
2411/2021 NDMC
19 W.P. (C ) Bansal Const.VS. 3,38,61,518 1,01,89,67 2,36,71,847
20 W.P. (C ) M K traders VS. NDMC 4,87,70,044 10,04,471 4,77,65,573
2413/2021
21 W.P.(C ) Gupta Radhey Shyam 1,56,86,985 10,21,898 1,46,65,087
2704/2021 VS. NDMC
22 W.P. (C ) S.V. Const VS. NDMC 21,24,475 NIL 21,24,475
2705/2021
23 W.P. (C ) Devansh Const. VS. 1,30,25,348 3,49,327 1,26,76,021
5444/2021 NDMC
24 W.P. (C ) A.A Const VS. NDMC 6,17,89,958 18,01,193 5,99,88,765
5445/2021
25 W.P. (C ) Mudit Const VS. NDMC 4,90,43,552 42,13,777 4,48,29,775
5446/2021
26 W.P.(C) Monika vs. NDMC 97,29,307 12,59,097 84,70,210
4859/2021
27 W.P.(C) Lalita Garg vs. NDMC 12,61,503 NIL 12,61,503
7280/2021
28 W.P. (C) Atul Gupta vs. NDMC 83,84,461 NIL 83,84,461
7276/2021
29 W.P. (C) Anil Kumar Bhardwaj 66,04,904 7,59,152 58,45,752
6952/2021 vs. NDMC
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
30 W.P. (C) Vikas Bansal Vs. MCD 2,78,10,366 NIL 2,78,10,366
13773/2022
31 W.P. (C) Nitin Gupta Vs.MCD 5,17,17,971 3,43,030 5,13,74,941
13136/2022
32 W.P. (C) Ashok Kumar Vs. 31,03,651 NIL 31,03,651
9889/2021 NDMC
33 W.P. (C) Baljeet Singh Satender 21,87,597 NIL 21,87,597
9887/2021 Parkash Vs.
NDMC
34 W.P.(C) Deepak Const. Co. Vs. 45,67,684 8,00,000 37,67,684
9874/2021 NDMC
35 W.P.(C) J.S. Sethi & Sons Vs. 25,10,482 4,68,196 20,42,286
9814/2021 NDMC
36 W.P.(C) Islamuddin Vs. NDMC 53,66,439 4,83,187 44,71,157
9873/2021
37 W.P.(C) Khan Enterprises Vs. 60,45,632 4,78,000 55,67,632
9809/2021 NDMC
38 W.P.(C) MaheswariConst.Co. 28,49,200 6,92,467 21,56,733
9871/2021 Vs. NDMC
39 W.P.(C) Mohd Rashid Vs. 22,07,597 NIL 22,07,597
9890/2021 NDMC
40 W.P.(C) Prem Bros. Vs. NDMC 27,02,289 7,44,198 19,58,091
8910/2021
41 W.P.(C) RashtriyaConst Co. Vs. 21,03,217 NIL 21,03,217
9885/2021 NDMC
42 W.P.(C) Sajid Khan Vs. NDMC 3,11,76,155 14,53,526 2,97,22,629
9891/2021
43 W.P.(C) Sunshine Const. Co. 9,98,973 NIL 9,98,973
9876/2021 Vs. NDMC
44 W.P.(C) Vikas DandonaConst 16,14,599 NIL 16,14,599
9907/2021 Co. Vs. NDMC
45 W.P. (C) Aggarwal Associates 31,23,684 NIL 31,23,684
14989/2021 Vs. NDMC
46 W.P. (C) Akash Construction 27,16,063 NIL 27,16,063
11731/2021 Vs. NDMC
47 W.P.(C) Amit Sehrawat Vs. 74,62,962 NIL 74,62,962
7013/2022 NDMC
48 W.P.(C) Anubhav Gupta Vs. 25,23,285 4,06,870 20,31,494
12245/2021 NDMC
49 W.P.(C) Arpit Electric Co. Vs. 1,24,56,620 8,22,048 1,14,68,350
10503/2021 NDMC
50 W.P.(C) Arya & Co. Vs. NDMC 31,06,000 NIL 31,06,000
10606/2022
51 W.P.(C) Ashok Kumar Bahl Vs. 10,95,479 NIL 10,95,479
10598/2022 NDMC
52 W.P.(C) Bharat ConstCo.Vs. 50,96,903 NIL 50,96,903
12246/2021 NDMC
53 W.P.(C) Deepak ConstCo.Vs. 83,47,243 NIL 83,47,243
1387/2022 NDMC
54 W.P.(C) Deepak Kumar Vs. 24,15,798 NIL 24,15,798
11286/2021 NDMC
55 W.P.(C) Deepika Enterprises 9,30,723 NIL 9,30,723
11477/2021 Vs. NDMC
56 W.P.(C) Dhankar Construction 25,23,058 14,83,511 10,39,547
10606/2021 Vs. NDMC
57 W.P.(C) Hardit Singh Kochar 48,89,962 1,64,980 47,24,982
12243/2021 Vs. NDMC
58 W.P.(C) Jagdamba Trading Co. 37,50,060 NIL 37,50,060
6796/2021 Vs. NDMC
59 W.P.(C) Japneet Builders Vs. 8,56,460 8,56,460 NIL
12274/2021 NDMC
60 W.P.(C) Kay Const. Co Vs. 47,71,405 83,928 46,87,477
11449/2021 NDMC
61 W.P.(C) Kays Buildcon Vs. 14,87,951 NIL 14,87,951
12249/2021 NDMC
62 W.P.(C) Kochhar Const Vs. 9,69,253 2,49,895 7,19,358
12244/2021 NDMC
63 W.P.(C) Lamba Brothers Vs. 87,27,811 NIL 87,27,811
14959/2021 NDMC
64 W.P.(C) Landscape Const Vs. 13,03,311 NIL 13,03,311
1336/2022 NDMC
65 W.P.(C) M K Gupta Vs. NDMC 25,55,824 11,96,995 13,58,829
10501/2021
66 W.P.(C) M. Chhiba& Co. Vs. 2,50,42,447 8,51,524 2,41,90,923
10504/2021 NDMC
67 W.P.(C) Mohan Lal & Co. Vs. 59,43,128 NIL 59,43,128
1361/2022 NDMC
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
68 W.P. (C) Monu Enterprises Vs. 10,59,646 2,76,396 7,83,251
11438/2021 NDMC
69 W.P.(C) N A Construction Vs. 11,03,593 NIL 11,03,593
11456/2021 NDMC
70 W.P.(C) Narender Singh 54,95,834 NIL 54,95,834
10605/2021 Dhankar Vs. NDMC
71 W.P.(C) Narender Construction 2,10,62,339 NIL 2,10,62,339
11728/2021 Vs. NDMC
72 W.P.(C) New Lamba Brothers 15,61,612 NIL 15,61,612
15152/2021 Vs. NDMC
73 W.P.(C) Pradeep Kumar Vs. 35,05,524 35,05,524 NIL
6781/2022 NDMC
74 W.P.(C) Prateek Const Co. Vs. 87,75,708 NIL 87,75,708
11771/2021 NDMC
75 W.P.(C) Prem Prakash Gupta & 35,80,033 19,88,666 15,91,367
1386/2022 Co. Vs. NDMC
76 W.P.(C) Puneet const Co. Vs. 6,53,211 NIL 6,53,211
1456/2022 NDMC
77 W.P.(C) Puneet Enterprises Vs. 21,32,766 NIL 21,32,766
1457/2022 NDMC
78 W.P.(C) Raj Kumar Kesar Vs. 53,46,709 4,58,950 48,87,759
10590 /2022 NDMC
79 W.P.(C) Rakesh Gupta Vs. 3,66,44,566 8,14,609 3,58,29,957
9872/2021 NDMC
80 W.P.(C) Sameer Enterprises Vs. 63,75,693 NIL 63,75,693
11451/2021 NDMC
81 W.P.(C) Sanjeev Builders Vs. 57,27,812 4,83,280 52,44,532
10597/2022 NDMC
82 W.P.(C) Shri Shiv Shankar 9,49,519 NIL 9,49,519
10605/2022 Const Co. Vs. NDMC
83 W.P.(C) Sudhir Construction 17,66,524 NIL 17,66,524
11440/2021 Vs. NDMC
84 W.P.(C) Vijender Bhardwaj Vs. 38,85,249 NIL 38,85,249
10607/2021 NDMC
85 W.P.(C) Vinod Kumar Vs. 2,05,31,732 5,29,877 2,00,01,855
6842/2022 NDMC
86 W.P.(C) Ansh Construction Vs. 24,43,777 4,85,905 19,57,872
12157/2022 NDMC
87 W.P. (C) Arora Construction Vs. 23,06,739 NIL 23,06,739
12070/2022 NDMC
88 W.P. (C) Harpreet Arora Vs. 15,97,586 NIL 15,97,586
12051/2022 NDMC
89 W.P.(C) Kapil Constructions Vs. 22,63,055 NIL 22,63,055
12111/2022 NDMC
90 W.P.(C) Kartar Builders Vs. 51,91,10 NIL 51,91,10
12127/2022 NDMC
91 W.P.(C) Sarab Constructions 6,39,167 NIL 6,39,167
12066/2022 Vs. NDMC
92 W.P.(C) Tanya Constructions 33,24,104 NIL 33,24,104
12108/2022 Vs. NDMC
93 W.P.(C) AIPL & PPMPPL (JV) v. 1,18,79,663 NIL 1,18,79,663
13020/2022 MCD and Ors.
94 W.P. (C) Sumit Infra. vs. NDMC 75,46,829 NIL 75,46,829
11314/2021
95 W.P. (C) R.S. Constructions v 22,59,288 NIL 22,59,288
11287/2021 NDMC
96 W.P. (C) Vinod & Company v 1,21,26,435 NIL 1,21,26,435
11285/2021 NDMC
97 W.P.(C) Anurag Rana v. Govt. 1,19,38,998 4,91,789 1,14,47,209
2938/2022 of NCT of Delhi
5. Though the Corporation had at the first instance filed a Counter-
Affidavit contesting the petitions, subsequently, Ms. Shilpa Shinde,
Additional Commissioner (Engineering), MCD appeared before this
Court on 09.09.2022 and stated that the Corporation has taken a decision
to release the payments towards principal amounts. In this regard, a copy
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
of policy dated 13.10.2022 approved by the Commissioner, MCD has
been placed on record alongwith an affidavit of the aforementioned
officer regarding mode and manner of disbursement.
6. Mr. Kunal Vajani, learned Standing Counsel for the Corporation,
submitted that though a decision has been taken by the Corporation to
make payments due towards principal amounts, the same would be
released to the petitioners in a phased manner in terms of the policy dated
13.10.2022. It was further submitted that a sum of Rs.30 crores has been
allocated to be released to the contractors on a monthly basis in the ratio
of 38:38:24 i.e. on the basis of geographical spread and staff strength of
the erstwhile North Delhi Municipal Corporation, South Delhi Municipal
Corporation and East Delhi Municipal Corporation. Learned Standing
Counsel also drew attention of the Court to policy dated 13.10.2022
placed on record to submit that payments would be released as per
seniority of bills according to cut out date of each erstwhile Corporation,
subject to the following three conditions:-
(i) The contractor shall certify that they have not received the
payment earlier, either in part or in full, with respect to the claim raised
by them against the Corporation,
(ii) The contractor shall submit an undertaking that if any payment is
erroneously made, it would be returned to the Corporation on first
demand, and
(iii) An affidavit to the above effect will be rendered to the Corporation
before disbursement of payment under this policy.
7. Learned counsels for the petitioners contended that the
Corporation, by way of above policy, has in-principle agreed to release
payments towards the principal amounts, but its decision to release the
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
payments as per seniority of the bills, that too in the manner stipulated in
policy dated 13.10.2022, would result in further delay of about four to
five years. The policy was challenged on various other grounds,
including inter-alia that being an administrative decision, the same is
ultra vires the DMC Act.
8. Before proceeding further, it is noted that a similar issue of release
of payments against bills prepared, verified and approved by the
respondent/Corporation in respect of contractors engaged with it for
tender works came up before this Court in North Delhi Municipal
Corporation and Anr. v. Sanjeev Kumar reported as 2018 SCC OnLine
Del 8053, wherein a Co-ordinate Bench of this Court observed as under:-
"81. The General Conditions of Contract i.e., clauses 7
and 9 which are admittedly part of the work orders issued
by both the NrDMC and the EDMC are being tested in
these batch of cases. A contract which stipulates that the
consideration would be paid in an unforeseen time in the
future based on certain factors which are indeterminable,
would in effect be a contract without consideration. Even
if the contract is held to be a valid contract, then the
concept of `reasonableness' has to be read into the same.
Section 46 of the Contract Act and the explanation
thereto is clear that "what is a reasonable time is a
question of fact in each case." A Corporation which gets
works executed cannot therefore include terms in the
contract which are per se unconscionable and
unreasonable as -
a) There is no fixed time period as to when the funds
would be available;
b) There is also no fixed mechanism to determine as to
when and in what manner the head of account is to be
determined and as to how the Contractor would acquire
knowledge of these two facts;
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
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Neutral Citation Number : 2023/DHC/000587
c) There is also no certainty as to how many persons are
in the queue prior to the Contractor and for what
amounts;
d) There is enormous ambiguity in the receipt under the
particular heads of accounts.
82. These clauses in effect say that the Contractor is left
with no remedy if the Corporation does not pay for the
work that has been executed. Such a Clause would be
illegal and contrary to law. Such clauses, even in
commercial contracts, would be contrary to Section 25
read with Section 46 of the Contract Act.
83. The clauses do not specify an outer time limit for
payment. The expression reasonable time has to be `a
time'. The concept of time itself is ensconced with
specificity and precision. Clause 9 is the opposite of
being precise. It is as vague and ambiguous as it could be
because it depends on factors which are totally
extraneous to the contract, namely -
• Allotment of funds to the Corporation by the
Government;
• Allotment of funds in a particular head;
• Allotment of funds for payments who are in queue
prior to the contractor;
xxx
85. By applying the above said principles, in respect of
final bills raised by Contractors for works executed, that
have been approved by the Engineer-in-Charge, the
Clauses have to be read in the following manner:
a) Reasonable time for making of payments of final bills
in respect of work orders up to Rs.5 lakhs shall be 6
months and work orders exceeding Rs.5 lakhs shall be 9
months from the date when the bill is passed by the
Engineer-in-Charge.
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
b) The queue basis can be applicable for the payments to
be made in chronology. However, the outer limit of 6
months and 9 months cannot be exceeded, while applying
the queue system.
c) The payments are held to become due and payable
immediately upon the expiry of 6 months and 9 months
and any non-payment would attract payment of interest
for the delayed periods.
d) A conjoint reading of Clauses 7 & 9 along with the
amendment dated 19th May, 2006, clearly shows that for
the payment of bills, the contractors have to follow the
queue basis and as and when the amount is available
under the particular head of account, the amount would
be payable. The amendment does not, however, have a
condition that no interest is payable for delayed payment.
Such a condition exists only in Clause 7. Clause 9,
therefore, when read with the amendment has to mean
that the Corporation itself considers 6 months and 9
months to be the reasonable periods for which the
payments of the final bills can be held back. Obviously,
therefore, if payments are made, whether on a queue
basis or otherwise, beyond the period of 6 months and 9
months, interest is payable.
e) To the extent that queue basis is applied only for
clearing of payments which do not extend beyond the
period of 6 months and 9 months period, it is reasonable.
However, if the queue basis is applied in order to make
Contractors wait for indefinite periods for receiving
payments, then the same would be unreasonable and
would have to therefore be read down.
f) The Security amount/Earnest money deposited would
be refundable upon the fulfilment of the conditions
contained in Clauses 17 and 45 of the General
Conditions of Contract. Interest would be payable on
delayed payments."
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
9. Although learned counsels on both sides have cited a catena of
decisions, the same need not be gone into in view of the decision taken
by Corporation to release the payments which are due to the petitioners
towards principal amounts.
10. On a reading of the policy dated 13.10.2022, however, it is evident
that the same is in teeth of the decision of this Court in Sanjeev Kumar
(Supra), which was passed in facts and circumstances akin to the present
case. It is worthwhile to note that in the captioned case, applicability of
queue system to payments due beyond 6/9 months, bereft of an upper
time limit, was found to be unreasonable. Further, it was opined that
reasonable time for making of payments of final bills in respect of work
orders with tendered value up to Rs.5 lakhs shall be 6 months and work
orders with tendered value exceeding Rs.5 lakhs shall be 9 months from
the date when the bill was passed by the Engineer-in-Charge. In the
present case, most of the bills date back to the year 2015 and reasonable
time for making payment has passed long back.
11. It is apparent that by bringing out the policy dated 13.10.2022 in
the present case, the Corporation, has aggravated the agony of the
petitioners and other similarly situated persons, as the release of
payments has been made dependent on the availability of funds with the
Corporation, among other extraneous factors mentioned in the policy.
Further, not only the amount allocated for disbursement is miniscule, but
also the ratio specified with regard to manner of disbursement bears no
rationale. The ratio specified by the Corporation is arbitrary and
unreasonable. This Court is also persuaded to take note of the fact that
the policy dated 13.10.2022 fails to specify as to how many contractors
are awaiting their payments from the Corporation. Insofar as the
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
Neutral Citation Number : 2023/DHC/000587
Corporation's decision to release payments in a phased manner is
concerned, it is reiterated that the brunt of shortage/non-availability of
funds with the Corporation shall not be borne by a contractor who has
duly executed tendered works and whose bills have been approved.
12. Moreover, the summary of outstanding dues/arrears of principal
amounts placed on record by the petitioners has not been disputed by the
Corporation, the relevant bills having been prepared and approved by
officials of the Corporation itself.
13. Accordingly, the present petitions are allowed and the Corporation
is directed to release payments due towards principal amounts to the
petitioners, against verified and approved bills, within a period of eight
weeks from the date of passing of this judgment. So far as the
petitioners' prayer for interest on delayed payments is concerned, they
may pursue their remedy by initiating appropriate proceedings in
accordance with law.
14. It is clarified that the present petitions are entertained and disposed
of in the peculiar facts and circumstances, where the Corporation has
taken a conscious decision to release the payments.
15. Pending applications stand disposed of.
(MANOJ KUMAR OHRI)
JUDGE
JANUARY 25, 2023
ga
Digitally Signed
By:SANGEETA ANAND
Signing Date:27.01.2023
16:28:49
Digitally Signed
By:MANOJ KUMAR OHRI
Signing Date:27.01.2023
16:26:24
