Delhi High Court · 2025

Page 1 of 5 $~46 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 10068/2025 & CM APPL. 41821/2025, CM APPL. 41822/2025 UNION OF INDIA .....Petitioner Through: Mr. Om Prakash, SPC with Mr. Nitish Pande, Ms. Swati Mishra, Mr. Manuj Gautam, Mr. Avnish Kumar, Ms. Sachita Pandey, Mr. Sarthak, Advocates Email: [email protected] Mob: 9871433036 versus MUNICIPAL CORPORATION OF DELHI & ANR. .....Respondents Through: Mr. Tushar Sannu, SC for MCD with Mr. Parvin Bansal, Advocate and Mr. Bhupinder, Officer of MCD Mob: 9911991166 Email: [email protected] CORAM: HON'BLE MS. JUSTICE MINI PUSHKARNA O R D E R % 17.07.2025 1. The present writ petition has been filed on behalf of the Northern Railways, Delhi Division, praying for quashing of the Distress Warrant dated 2nd July, 2025, issued by the respondent no. 2, i.e., Assessment and Collection Department, Municipal Corporation of Delhi (“MCD”), thereby, attaching a sum of Rs. 14,84,61,840/-, on the ground of non-payment of service charges for the Assessment Year 2023-2024 and 2024-2025. 2. By way of the present writ petition, the petitioner has further challenged the Demand Notice dated 12th March, 2025 issued by respondent no. 2, by which the petitioner has been asked to deposit the property tax, This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 19/07/2025 at 13:24:05 Page 2 of 5 which as per the petitioner, is contrary to the mandate of Article 285 of the Constitution of India. 3. Learned counsel appearing for the petitioner relies upon the judgment in the case of Rajkot Municipal Corporation & Ors. Versus Union of India, Civil Appeal Nos. 9458-9463/2003, wherein, it had been categorically directed that the Union of India (“UOI”) and its departments will pay service charges for the services provided by the respective Municipal Corporations. 4. Thus, it is submitted that the action taken by the MCD, is not as per law. 5. Learned counsel appearing for the petitioner further relies upon the Office Memorandum (“OM”) dated 15th/17th December, 2009, issued by the Ministry of Urban Development, UOI, which reads as under: This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 19/07/2025 at 13:24:05 Page 3 of 5 6. By referring to the aforesaid OM, learned counsel appearing for the petitioner submits that no property tax is payable by the UOI, but only service charges calculated @ 75%, 50% or 33 1/3% of the property tax levied on the property owners, depending upon utilization of full or partial or nil services. 7. Thus, he submits that as per the aforesaid OM, issued by the Ministry of Urban Development, Government of India, an agreement will be entered into by the UOI and the respective Municipal Corporation, for the aforesaid purpose. 8. Thus, learned counsel appearing for the petitioner submits that the Northern Railways, Delhi Division, is ready to enter into an agreement with the MCD in terms of the aforesaid OM. 9. Learned counsel appearing for the petitioner submits that the Senior Divisional Engineer-III is the officer, who can meet the concerned officials of the MCD, for the purposes of entering into an agreement, in this regard. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 19/07/2025 at 13:24:05 Page 4 of 5 10. Responding to the present petition, learned counsel appearing for the respondents submits that full amount in terms of Notice of Demand dated 12th March, 2025, i.e., Rs. 14,84,61,840/-, already stands recovered by the MCD from the Northern Railways, Delhi Division, by way of an attachment. 11. He has handed over a copy of the receipt by which the said amount already stands recovered by the respondents. 12. He further submits that the Northern Railways, Delhi Division, is bound to make the payment towards the service charges and, in case, the requisite amount is not deposited by the petitioner towards the service charges, in terms of the OM dated 15th/17th December, 2009, the MCD is within its authority to take suitable action, as permissible in law. Thus, he submits that all the actions taken by the MCD are in accordance with law and within the authority of the MCD. 13. He also draws the attention of this Court to the letter dated 28th March, 2025 submitted by the Northern Railways, Delhi Division to the respondents, wherein, the Northern Railways, Delhi Division, has stated as follows: “xxx xxx xxx In view of the above, you are requested to review outstanding demand notice and to resolve pending disputes through mutual consent or through 3 Member Mediation Committee as per MoUD OM dated 15-17/12/2009 (annexure-C), if deemed fit. It is also requested to execute the requisite MOA/Agreement to enable this office for timely processing of service charge dues and till such time MCD may not resort to coercive steps (such as stoppage of services) nor resort to revenue recovery proceedings in terms of clause (4) of MoU dated 15-17/12/2009 please. xxx xxx xxx” 14. At this stage, learned counsel appearing for the petitioner submits that the petitioner is ready to take steps for the purposes of entering into an agreement with the MCD in order to enable the Northern Railways, Delhi This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 19/07/2025 at 13:24:05 Page 5 of 5 Division for timely processing of the service charges dues. 15. Considering the submissions made before this Court, the following directions are issued: I. Senior Divisional Engineer-III of the petitioner shall visit the Joint Assessor and Collector, Assessment and Collection Department (GRP) Cell, MCD, D-1 Block, 14th Floor, Dr. SPM Civic Centre, New Delhi – 110002, at mutually convenient date and time, which shall be indicated by the MCD to the Northern Railways, Delhi Division. II. The parties shall endeavour to resolve the issue and shall endeavour to arrive at an agreement in terms of the OM, issued by the Ministry of Urban Department, Government of India dated 15th/17th December, 2009. III. The Northern Railways, Delhi Division, is directed to bring forth all the requisite records and documents, as may be required by the MCD for this purpose, including, any specific details of the properties as may be sought by the MCD. IV. In case of any dispute that remains pending between the parties with regard to service charges payable by the Northern Railways, Delhi Division to the MCD, the petitioner shall be at liberty to seek its remedies, in accordance with law. 16. With the aforesaid directions, the present petition, along with the pending applications, is accordingly disposed of. MINI PUSHKARNA, J JULY 17, 2025 ak