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2020 (4) TMI 908 - HC - Indian LawsSeeking that the national lock-down period ought to be taken into consideration while giving effect to the termination of the Toll Tax Collection Agreement dated 28th September 2017 - HELD THAT - A perusal of the letter dated 4th April 2020 clearly shows that the SDMC had extended the effective date of termination in view of the 21 day national lock down - A perusal of the letter dated 4th April 2020 shows that despite the defaults of the Petitioner the effective date of the termination was postponed by the SDMC itself due to the national lock-down. Since the national lock down has now been extended for a further period the effective date of termination would by the rationale of the above letter be required to be extended for the further period of lockdown. In any event a perusal of the NIT dated 6th April 2020 shows that the opening of the tender is to take place on 22nd April 2020. While it is made clear that the SDMC would be permitted to go ahead with its NIT and finalize the tender it is clarified that the effective date of termination shall stand postponed for a further period of 19 days. If the lock down is lifted with effect from 4th May 2020 all the amounts which are collected upon lifting of the lockdown by the Petitioner by operating under the Toll Tax agreement shall be deposited with the SDMC. The effective date of termination is extended by a period of 19 days from 5th May 2020 i.e. till 24th May 2020. The SDMC shall however ensure that any new arrangement and award of tender in favour of any third party would not be effective till 24th May 2020. Application disposed off.
Issues:
1. Extension of the termination date of Toll Tax Collection Agreement due to national lockdown. 2. Default in payment by the Petitioner. 3. Postponement of the effective date of termination by the SDMC. 4. Opening of the tender and finalization of the NIT during the lockdown period. Issue 1: Extension of the termination date of Toll Tax Collection Agreement due to national lockdown The Court considered the application moved during the COVID-19 lockdown period requesting the termination date of the Toll Tax Collection Agreement to be extended. The SDMC had already postponed the termination date due to the national lockdown. The Court acknowledged the need for further extension of the termination date in line with the lockdown period. It was decided that the effective date of termination would be extended for an additional 19 days beyond the lockdown period, ensuring that any amounts collected by the Petitioner during this extended period would be deposited with the SDMC. Issue 2: Default in payment by the Petitioner The Respondent argued that the Petitioner was in default of payment as per previous orders. The Court noted the default and the submission by the Petitioner's counsel regarding the payment made to the SDMC. Despite the default, the SDMC decided to postpone the termination date due to the lockdown. The Court clarified that the extension of the termination date did not create any favorable conditions for the Petitioner and emphasized that any new arrangements or tender awards would not be effective until the extended termination date. Issue 3: Postponement of the effective date of termination by the SDMC The SDMC had issued a letter postponing the effective date of termination of the Toll Tax Collection Agreement due to the national lockdown. The Court reviewed the contents of the letter and noted that the SDMC had extended the termination date despite the default by the Petitioner. The Court directed that the SDMC could proceed with the NIT and finalize the tender, but the effective date of termination was to be extended by 19 days beyond the initial postponement, ensuring that any new arrangements would not take effect until after the extended termination date. Issue 4: Opening of the tender and finalization of the NIT during the lockdown period The Court observed that the opening of the tender was scheduled during the lockdown period, and it would take time for the NIT to be finalized due to the restrictions. While the Court allowed the SDMC to continue with the NIT process, it made it clear that the date for opening the tender and subsequent steps would not be altered. The Court specified that any amounts collected by the Petitioner after the lockdown period should be deposited with the SDMC, and the effective date of termination was extended accordingly. In conclusion, the Court granted the extension of the termination date, allowing the SDMC to proceed with the NIT process while ensuring that any new arrangements or tender awards would only be effective after the extended termination date. The judgment balanced the interests of both parties amidst the challenges posed by the national lockdown due to the COVID-19 pandemic.
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