Amit Chawla & Ors. vs. Delhi Transport Infrastructure Development Corporation Limited

Held

The Court held that the writ petitions were maintainable, notwithstanding the arbitration clause, as the issue involved public interest and the actions of a public authority. Regarding the payment of license fees, the Court differentiated between periods of complete lockdown and periods of partial resumption of services. For the period of complete lockdown (March 2020 to November 2020 and April 2021 to May 2021), a complete waiver of license fees was granted to the petitioners. For the period when services partially resumed, the Court directed a proportionate reduction in license fees based on the extent of business resumption. The Court also granted an extension of the license period by nine months to most petitioners and six weeks to others, along with a 10% increase in license fees for six months on the extended period for certain categories. The Court also addressed the GST implications, stating that the DTIDC could apply for a refund of GST paid for periods where waivers were granted. The issue of forfeiture of security deposit was to be considered at the final adjudication stage.

Facts

The petitioners are allottees of shops at various bus terminals in Delhi, including ISBT Kashmere Gate, ISBT Anand Vihar, and ISBT Sarai Kale Khan. They had entered into license agreements after a bidding process and paid advance license fees and security deposits. The COVID-19 pandemic led to a nationwide lockdown, causing a standstill in bus services and commercial activity at the bus terminals. The petitioners argued that they should not be liable for license fees during the lockdown periods and that the termination of their licenses by the respondents was invalid. The petitions were filed seeking relief from payment of license fees during the lockdown and for extension of their license periods. The court had previously framed several issues for determination, including the maintainability of the petitions and the liability to pay license fees during lockdown.

Key Issues

1. Whether the writ petitions are maintainable given the arbitration clause in the license agreements and the contractual nature of the agreements (Section 226 of the Constitution of India)? 2. Whether license fee is payable for the period of complete lockdown (March 2020 to November 2020, and April 2021 to May 2021)? 3. Whether license fee is payable from the period when intrastate bus services commenced (June 2020) and when interstate bus services resumed at 50% capacity? 4. Whether the Petitioners are entitled to any remission or waiver of license fees and other charges during these periods, and if so, to what extent? Petitioner's arguments: The petitioners contended that due to the complete cessation of business activities caused by the pandemic-induced lockdowns, they should be granted a waiver or remission of license fees for the periods of lockdown and reduced business activity. They argued that it would be unjust to collect fees when no services were rendered or business could be conducted. Revenue/State's arguments: The respondents, represented by the Government of NCT of Delhi and Delhi Transport Infrastructure Development Corporation, argued that the license agreements were contractual and that the petitioners should adhere to the terms. They also raised the issue of maintainability of writ petitions in contractual matters and in the presence of arbitration clauses. They further argued that the GST law necessitates payment of license fees.