Supreme Court today allowed Noida Toll Bridge Company Ltd. to put up advertisements on the Noida side of the DND Flyway.
A bench comprising of Justice L.N. Rao and Justice B.R. Gavai today allowed an application filed by the Noida Toll Bridge Co. Ltd. to allow it to put up advertisements on the Noida side of the DND Flyway. The said order has been passed against the backdrop of the removal of the advertisement hoardings on the DND Flyway by the Noida authority on the alleged basis that the Noida Toll Bridge Co. Ltd. had not been paying the license fee as envisaged under the Advertisement Policies of the Noida Authority.
Senior Advocates Dr. Abhishek Manu Singhvi and Siddharth Bhatnagar appearing on behalf of the Noida Toll Bridge Co. Ltd. argued that the Noida Authority had removed and confiscated the property of the company with the sole aim to irreparably harm the financial assets of the Company (i.e. the revenue stream from advertisements) and undermine and negate the continued viability of the company as a going concern. The Senior Counsel placed for the consideration of the Bench the fact that consequent to the Judgment passed by the High Court of Allahabad on October 26, 2016, by the collection of tolls on the DND Flyway was discontinued, and thus, the Company became solely reliant on advertising revenues for the day-to-day maintenance of the Bridge and to make the necessary provisions for traffic and security arrangements. This is particularly relevant to the effect that the Company is as on date bound by the obligations cast on it regarding the operations and maintenance of the bridge under the Concession Agreement.
The Company also placed before the Court the data from its audited balance sheets to outline that it was reeling under major financial stress in view of the general economic slowdown brought about by the Covid-19 pandemic, and therefore, was heavily reliant on the advertisement revenue to meet its day to day operation and maintenance expenses. It was also argued before the Bench that the rate of license fee being charged by the NOIDA Authority was increased from Rs. 50/sq. ft. in 2010 (when the same was first charged) to Rs. 125/sq. ft. in 2013, which was paid by the Company under protest.
However, vide a letter dated December 31, 2018, addressed by the NOIDA Authority, the license fees for permission to display advertisement along the DND Flyway were further increased, on a retrospective basis from April 01, 2018, at a substantially increased rate of Rs. 300/sq. ft. (i.e. an approximate increase of 500% from the rate of Rs. 50/sq. ft. in 2010). In view of the said submissions, the Bench was pleased to allow the Application on behalf of the Noida Toll Bridge Co. Ltd. and has allowed it to put up its advertisements on the NOIDA side subject to a license fee payment of Rs. 125/sq. ft, and not at the increased rate of Rs. 300/sq. ft.
The Bench has further directed NOIDA Authority to not take any coercive steps in this regard against the Company and has directed the matters to be listed for final hearing in the month of March 2022 on a fixed day.
Noida Toll Bridge Co. Ltd. was represented by a team from Karanjawala & Co. Advocates led by Ms. Nandini Gore, Senior Partner, Ms. Sonia Nigam, Ms. Natasha Sahrawat and Ms. Tahira Karanjawala, Principal Associates, Mr. Arjun Sharma, Senior Associate and Mr. Karanveer Singh Anand, Associate. Mr. Amit Bhandari, Adv. also appeared on behalf of the company.
The NOIDA Authority was represented by Senior Advocate Ravindra Kumar, briefed by Advocate Binay Kumar Das, and Senior Advocate Gopal Jain, briefed by Advocate Piyush Joshi, Advocate and Advocate Ms. Sumiti Yadav, appeared on behalf of IL&FS / LAB/ SNG/