M/S Erfolg (Through Its Partner Ms. Dimple Mehra) v. Municipal Corporation Of Delhi
$~58-59 * IN THE HIGH COURT OF DELHI AT NEW DELHI 58.
+ W.P.(C) 5825/2026 & CM APPL. 28656/2026 M/S ERFOLG (THROUGH ITS PARTNER MS. DIMPLE MEHRA) .....Petitioner Through:
Mr. Ayush Malhotra and Mr. Shobhit Garg, Advocates.
versus MUNICIPAL CORPORATION OF DELHI .....Respondent Through:
Mr. Bharat Malhotra and Ms. Gayatri Bhatia, Advocates for MCD.
59.
+ W.P.(C) 5836/2026 MS AMBER BAWA .....Petitioner Through:
Mr. Ayush Malhotra and Mr. Shobhit Garg, Advocates.
versus MUNICIPAL CORPORATION OF DELHI .....Respondent Through:
Mr. M.S. Oberoi, Standing counsel for MCD.
CORAM:
HON'BLE MR. JUSTICE AMIT BANSAL
O R D E R
% 29.04.2026 1.
W.P.(C) 5825/2026 has been filed seeking the following reliefs: W.P.(C) 5825/2026 and connected matter Page 1 of 7 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
2.
W.P.(C) 5836/2026 has been filed seeking the following reliefs: W.P.(C) 5825/2026 and connected matter Page 2 of 7 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
3.
The aforesaid units in the subject property had been sealed by the respondent/MCD on 5th February, 2008 on the ground of misuse. 4.
Counsel for the petitioners has drawn attention of the Court to the common order passed by the Appellate Tribunal MCD ('ATMCD') on 10th April, 2017 in Appeal Nos. 444/ATMCD/2013, 445/ATMCD/2013 and 609/ATMCD/2013 filed by the owners of the aforesaid units. The relevant extract from the said order is set out below: W.P.(C) 5825/2026 and connected matter Page 3 of 7 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
5.
ATMCD, while allowing the petitioners' appeal, quantified the liability as 10-times misuse penalty and parking charges, and ordered desealing upon deposit thereof and filing of an undertaking. The petitioners duly deposited the said penalty on 15th December, 2016 and parking charges on 21st February, 2017. Pursuant to such compliance, the respondent/MCD de-sealed the subject property in May, 2017.
6.
It is contended on behalf of the counsel for the petitioners that the aforesaid order passed by ATMCD notes that the petitioners have paid 10 times the penalty for misusing the premises and therefore, levy of fresh W.P.(C) 5825/2026 and connected matter Page 4 of 7 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
penalties on the petitioners in terms of the impugned demand notices dated 18th December, 2025 is unlawful.
7.
Counsel for the respondent/MCD appearing on advance notice submits that the subject property was sealed again in the year 2018 and therefore, the payments which were made in 2017 cannot be treated as penalty in respect of subsequent sealing which took place in 2018. 8.
Against the fresh re-sealing in 2018, the petitioner approached the Monitoring Committee appointed by Supreme Court in W.P.(C) 4677/1985 titled as M.C. Mehta v. Union of India. The case of petitioners came up before the Monitoring Committee on 17th October, 2022 wherein the orders were passed for permanently de-sealing of premises of petitioners, subject to payment of penalty at prevailing rates and compounding/regularization fee/charges for the entire building, and filing of affidavits restricting use to residential purposes pending regularisation.
9.
Since the premises of the petitioners were not de-sealed, the petitioners approached this court by filing writ petitions being W.P. (C) 14100/2025 and W.P. (C) 14159/2025.
10.
W.P. (C) 14100/2025 titled as M/s. ERFOLG v. Municipal Corporation of Delhi was disposed vide order dated 12th September, 2025. The relevant extracts from the said order are set out below: W.P.(C) 5825/2026 and connected matter Page 5 of 7 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
11.
W.P. (C) 14159/2025 titled as Amber Bawa v. Municipal Corporation of Delhi was disposed of vide order dated 15th September, 2025. The relevant extracts from the said order are set out below: 12.
Pursuant to the aforesaid orders, the impugned demand notices dated 18th December, 2025 have been issued by the respondent/MCD communicating to the petitioners the amounts of penalties that are due, being Rs. 29,56,206/- in respect of M/s. ERFOLG and Rs. 60,64,765/- in respect of Ms. Amber, the penalty amount was calculated at 1.5 times the one-time conversion charges of Rs. 22,274/- per sq. m. by applying W.P.(C) 5825/2026 and connected matter Page 6 of 7 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
Notification S.O. 3173(E) dated 29th June, 2018. 13.
The order passed by Monitoring Committee as well as the orders by this court in W.P. (C) 14100/2025 and W.P. (C) 14159/2025 have held that the petitioners are liable to pay penalties as communicated by MCD. Admittedly, the petitioners have not challenged the aforesaid orders. 14.
Therefore, I do not find any merit in the contention of the petitioners that they are not liable to pay penalties.
15.
The present writ petitions are completely misconceived and are dismissed accordingly.
16.
Consequently, the pending application stands disposed of. AMIT BANSAL, J APRIL 29, 2026 Rzu W.P.(C) 5825/2026 and connected matter Page 7 of 7 The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.