HC imposes Rs 12.50 crores costs on private company, to be spent on new smog tower

“The purpose behind such a disclosure of blacklisting orders and termination of contracts, is not far to see as no tendering authority would like to deal with entities which are incapable of satisfying contractual obligations, or have had a chequered past wherein they were blacklisted, or were unable to perform the task they undertook,” said the bench.

The court said that since it has found that the company stood disqualified, it cannot seek to derive any monetary benefit from the contract. The bench also said that RITES should also be directed to pay costs for improper due diligence and proceed with the award of work despite being informed of its disqualification by another bidder.

While taking notice of the Supreme Court judgment, the court said that since the contract value is Rs 125 crores, it is reasonable to expect that the company would make about Rs 12.50 crores profit. “The course that commends to us is that respondent No.3 (SARR Freights Corporation) should be disgorged of Rs 12.50 crores and the said amount should partly go to the petitioner, and mainly ploughed back into the society. We, therefore, direct respondent No.3 to deposit in this court an amount of Rs 12.50 crores within 4 weeks thereof,” reads the judgment.

Taking note of air pollution in Delhi, the court said that the amount should be used for reducing the pollution levels. “We direct that the entire amount of Rs 12.5 crores shall be deposited by respondent No.3 with the Registrar General of the Delhi High Court within 2 weeks from today. The Registrar General will call all the stakeholders and ensure that the smog tower is installed (maybe of a lesser capacity) at a suitable place where it will contribute towards reducing the AQI levels of Delhi,” said the bench.

The court further said the Registrar will take steps on a war footing to ensure that the smog tower is installed and operationalised before the advent of winter. It also said that the government of Delhi will provide suitable space for the smog tower and in case of a financial shortfall, will make up for it.

Taking note of an Indian Express news report regarding the installation of a smog tower at Connaught Place, the court said the smog tower shall be based on the same working and operational guidelines as the smog tower there.

The court also directed RITES to pay a cost of Rs 25 Lakh to CJ DARCL Logistics, a company engaged in the business of transportation of goods and one of the participants in the tender. The company had approached the court seeking cancellation of bids of SARR Freights Corporation.

“In case the aforesaid amounts and costs are not deposited by the respondents within four weeks, the matter be listed before this court for directions,” said the bench.