The Delhi High Court has imposed a ₹1 lakh fine on the Delhi government after finding that administrative inaction and repeated disregard of its directions prolonged a company’s dispute over an alternative industrial plot for years. The court directed that the amount be recovered from the salaries of the officials responsible for the delay.
Justice Amit Mahajan ordered the Delhi government to deposit the fine with the Delhi High Court Legal Services Committee within six weeks. The case concerns Central Footwear Company’s claim for an alternative industrial plot under the Relocation Scheme, 1996. The company’s next hearing is scheduled for February 9, 2027.
The court’s order followed the company’s fourth round of legal proceedings over the same matter. Central Footwear Company had initially challenged the rejection of its claim for an alternative industrial plot, arguing that its industrial unit was located in a conforming area.
During earlier proceedings, authorities reconsidered the matter and told the court that the company’s unit in Swarn Park, Mundka, was located in a non-conforming area. On that basis, the company would be eligible for an alternative industrial plot. The High Court recorded the submission and, in March 2009, set aside the order that had rejected the company’s claim.
The court also directed the authorities to act on the company’s application at the earliest and communicate a decision within two months. According to the report, no action was taken on the application despite those directions, leading the company to initiate further proceedings in 2015.
During the 2015 proceedings, the High Court said its earlier order had become final and directed the authorities to examine the documents submitted by the company before taking action on its application. In 2024, the company again approached the court seeking enforcement of the earlier directions.
The court subsequently instructed the authorities to consider the documents filed by the petitioner. However, the claim was rejected again through a letter dated August 20, 2024. The High Court observed that instead of complying with the 2009 directions, the authorities had kept the application pending for several years.
The court also noted that the earlier order had never been challenged and had therefore attained finality. The respondents later argued that an incorrect statement had been made before the court during the previous proceedings. The judges, however, noted that the authorities had not produced the original records or any document from that period to support the claim.
The court held that the conduct and inaction of the authorities had kept the company’s grievance unresolved for years. It said that proper compliance with the earlier directions could have prevented repeated litigation and avoided the further expenditure of judicial time.
Describing the manner in which the matter had been handled as disappointing, the High Court imposed the fine before directing the case to proceed. The Delhi government has six weeks to make the payment, while the company’s plot claim remains listed for further hearing on February 9, 2027.
