Premium
This is an archive article published on February 17, 2011

High Court clears logjam over LED screens installation

Having run into a logjam over setting up 50 LED screens across the city to promote community viewing and also to generate revenue from advertising,the Municipal Corporation of Delhi has got a breather from the Delhi High Court.

Having run into a logjam over setting up 50 LED screens across the city to promote community viewing and also to generate revenue from advertising,the Municipal Corporation of Delhi (MCD) has got a breather from the Delhi High Court.

Granting a virtual go-ahead to the MCD,the court has dismissed a petition by the company,MIC Electronics Ltd,that had sought a restriction on the civic body against engaging another firm for putting up these screens.

The company had approached the court against the order of a single-judge bench that had refused to stay the operation of an MCD letter,cancelling the contract given to it for installing 50 LED screens on a build,operate and transfer (BOT) basis.

Story continues below this ad

The company’s petition also sought a restraint order against forfeiture of the security money with the MCD,apart from a prohibition on calling any tender for 41 screens. The company was,at the time of filing the petition,operating 9 LED screens and had sought a status quo with respect to maintaining them.

The company’s counsel told the division bench of Justices Vikramjit Sen and Siddharth Mridul that out of the 50 sites provided by the MCD,25 were either not under civic body control or objections were raised against the installation by the traffic police,market associations and car parking contractors.

While work could not be started at these 25 sites,9 screens had been installed and 16 sites were under consideration,the counsel told court. The problems encountered by the company were also conveyed to the MCD through various letters,the counsel said.

Senior advocate Pinky Anand and Mini Pushkarna,appearing for the MCD,countered that all the 50 sites identified by the civic body and had been under its control. The terms of the contract,the civic body argued,could not be changed as per the wishes of the company and that the MCD was authorised under the law to cancel the licence when the latter had acted in breach of its provisions.

Story continues below this ad

The bench held that the actions of the MCD were in sync with the contractual terms and the company would have to resort to arbitration proceedings for determination of the questions relating to legality or illegality of the termination of their licence.

MCD Director (Public Relations) Deep Mathur said the civic body would examine the court order before taking any action. “We are committed to usher in the concept of community viewing and the screens would also be a good source of revenue for the MCD,” Mathur told Newsline.

Stay updated with the latest - Click here to follow us on Instagram

Latest Comment
Post Comment
Read Comments
Advertisement
Loading Taboola...
Advertisement