The Delhi High Court has imposed costs of ₹1 lakh on the Government of the National Capital Territory of Delhi (GNCTD) for repeatedly disregarding its earlier directions in a dispute concerning the allotment of an alternative industrial plot. The Court also directed the government to recover the amount from the salaries of the officers responsible for the delay.
Justice Amit Mahajan passed the order, in a writ petition filed by Central Footwear Co., which had been seeking an alternative industrial plot under the Relocation Scheme, 1996.
Background
The dispute dates back to 1996, when Central Footwear Co. applied for an alternative industrial plot, claiming that its factory at Plot No. 19, Swarn Park, Mundka, was situated in a non-conforming area.
In 2009, the High Court recorded the government's submission that the factory was indeed located in a non-conforming area and that the company was entitled to an alternative plot. The Court consequently quashed the rejection order and directed the authorities to process the application within two months.
However, the application remained unresolved. The company approached the Court again in 2015 and 2024, seeking compliance with the earlier directions.
The Court strongly criticised the authorities for repeatedly failing to comply with its orders. It noted that the 2009 order had attained finality as the government had never challenged it.
Justice Mahajan observed:
“However, instead of complying with the said directions, the respondents kept the petitioner's application pending for several years, compelling it to approach this Court repeatedly.”
The Court also noted that the government subsequently claimed an incorrect statement had been made during earlier proceedings. However, the authorities failed to produce original records or contemporaneous material supporting that contention.
Expressing concern over the conduct of the officials, the Court observed:
“The manner in which the matter has been dealt with reflects a complete disregard for the orders passed by this Court and has resulted in an avoidable wastage of valuable judicial time.”
Considering the prolonged inaction and repeated disregard of judicial directions, the High Court imposed costs of ₹1 lakh on GNCTD, payable to the Delhi High Court Legal Services Committee within six weeks.
The Court further directed that the amount be recovered from the salaries of the officers responsible for the situation.
The matter has been listed for further hearing on February 9, 2027.
Case Details
Case Title: Central Footwear Co. v. Government of National Capital Territory of Delhi & Anr.
Case Number: W.P.(C) 16614/2024
Judge: Justice Amit Mahajan
Decision Date: 6 November 2026
