The Delhi High Court has imposed costs of Rs. 1 lakh on the Delhi Government for repeatedly disregarding its earlier orders directing authorities to process an industrial unit's application for allotment of an alternative industrial plot under the 1996 Relocation Scheme.

Justice Amit Mahajan directed the Delhi Government to pay the costs 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 Court observed that the conduct of the authorities in handling the matter had been “deplorable”, noting that their inaction had compelled the petitioner to repeatedly approach the Court over several years.

The case arose from a petition filed by Central Footwear Company, seeking allotment of an alternative industrial plot under the Relocation Scheme, 1996, in lieu of its industrial unit situated at Plot No. 19, Swarn Park, Mundka.

The company had initially approached the Court in 2007 after its claim for an alternative industrial plot was rejected on the ground that its unit was situated in a conforming area.

However, during the proceedings, the Commissioner of Industries informed the Court that upon re-examination, the authorities had concluded that the petitioner's industrial unit was situated in a non-conforming area and was entitled to an alternative plot.

Taking note of the submission, the High Court, on March 05, 2009, quashed the rejection order and directed the authorities to process the company's application expeditiously, within two months.

Despite the order attaining finality, the company's application remained unprocessed, compelling it to approach the Court again in 2015.

In July 2017, the Court had reiterated that the authorities were bound to comply with its earlier directions. It had also noted that the original records relating to the company's application were unavailable with the authorities.

The Court had directed the authorities to verify the authenticity of the petitioner's Sales Tax Registration Certificate, which indicated that its factory existed at the concerned premises with effect from January 01, 1994, and thereafter process its application for allotment.

The company then approached the Court once again in 2024, alleging non-compliance with the earlier orders despite furnishing the requisite documents.

On May 24, 2024, the Court directed the authorities to treat the petition as a representation and consider the documents submitted by the company within six weeks, after providing an opportunity of personal hearing, if permissible under the applicable rules.

However, the authorities subsequently rejected the company's claim through a communication dated August 20, 2024, leading to the present proceedings.

The Court noted that the order dated March 05, 2009, was never challenged by the respondents and had attained finality. Despite this, the authorities continued to act in disregard of the directions issued by the Court.

It further observed that although the respondents subsequently contended that an incorrect statement had been made before the Court during the earlier proceedings, they had failed to produce the original records or any contemporaneous material to substantiate the claim.

“This Court is of the opinion that it is on account of the conduct and inaction of the officers of the respondents that the petitioner's grievance has remained unresolved for several years, compelling it to approach this Court repeatedly,” the Court observed.

It added that the manner in which the matter had been dealt with reflected a “complete disregard” for the Court's orders and had resulted in an avoidable wastage of valuable judicial time.

Accordingly, the Court imposed costs of ₹1 lakh on Delhi Government and directed that the same be recovered from the salaries of the officers responsible.

The matter has been listed for further hearing on February 09, 2027.