In a recent landmark judgement by the Delhi High Court, a ruling was made in a recovery suit filed by the plaintiff against the defendant regarding the parking site license fee dispute. The court’s decision has far-reaching implications for similar cases, setting a clear precedent. Stay informed about this legal battle between the parties involved.
Facts
- The plaintiff filed a suit for the recovery of Rs. 3,81,13,194/- as the License Fee for the period 07.09.2015 to 06.12.2017, during which the defendant occupied the parking site at Preet Vihar Commercial Complex.
- The plaintiff took possession of the site on 07.12.2017 with police assistance after the defendant failed to pay the MLF charges.
- The defendant deposited a balance amount of Rs. 15,15,175/- on 16.06.2015 for the period from 07.03.2015 to 06.09.2015 after deducting remission amount of Rs. 4,72,568/-.
- A Warrant of Distress was issued against the defendant for the outstanding sum of Rs. 3,81,13,194/- from their bank accounts.
- The defendant continued operating the parking site without paying the MLF as directed by the court, leading to legal action by the plaintiff.
- Various notices and demand letters were sent to the defendant for payment of outstanding dues, but no compliance was observed.
- The defendant’s suit challenging termination of the contract was disposed of, and the defendant was directed to pay the outstanding MLF.
- The Zonal Remission Committee recommended remission for a specific period during which the parking site was cancelled, increasing the MLF amount from Rs. 2,94,563/- to Rs. 12,96,076/-.
- Despite the recommendations and reminders, the defendant failed to pay the enhanced license fee, leading to the current recovery suit by the plaintiff.
- Defendant informed the Court that an amount of Rs 3,00,000/- was already deposited
- The defendant committed to deposit the remaining amount within a week
Arguments
- The plaintiff presented unchallenged testimony regarding the defendant being granted a Tender for the Preet Vihar Parking site.
- The Agreement for the Tender was dated 07.09.2013.
- The Agreement specified a monthly license fee (MLF) of Rs.3,25,125/- plus TCS at 2.244% per month from 07.09.2013 to 06.09.2014.
- The Agreement was extendable for a second year with a 10% enhancement in the MLF for the next year.
Analysis
- Part of the parking site was handed over for construction of a Community Centre.
- Zonal Remission Committee approved remission of 9.4% in MLF for the defendant.
Decision
- Plaintiff entitled to costs.
- Plaintiff entitled to recover Rs.3,81,07,461.3.
- Plaintiff entitled to interest @ 6% per annum.
- Defendant served with Ex.PW1/26 but outstanding amount not paid.
- MLF reduced from Rs.2,94,463 w.e.f 30.12.2013.
- Defendant liable to pay MLF for using parking area from 07.09.2015 to 06.12.2017.
- MLF charged calculated at Rs.3,81,13,194 after adjustment of Rs.5,732.73.
- Plaintiff realized Rs.5,732.73 through attachment of defendant’s bank account.
Case Title: EAST DELHI MUNCIPAL CORPORATION Vs. BALAJI & SONS (2024:DHC:3816)
Case Number: CS(COMM)-1073/2018
