Delhi High Court corrects error, reduces costs on firm from ₹12.5 crore to ₹1.21 crore; no smog tower from costs

The Delhi High Court has corrected an arithmetical error in its judgment and reduced the costs imposed on a private firm named SARR Freight Corporation from of ₹12.5 crore to ₹1.21 crore..The costs imposed by a Division Bench of Acting Chief Justice Vipin Sanghi and Justice Jasmeet Singh in its judgment dated June 1 were earlier directed to be utilised towards the construction of a smog tower in the capital..In its June 1 verdict, the Court had held that the firm had concealed facts regarding its blacklisting because of which it was declared an L-1 bidder for a government project. However, after correcting the error, the same Bench has now said that since the cost imposed is too little, it will be used for different purposes.“The amount that the respondent No.3 would plough back would be 10% of the aforesaid amount, i.e. Rs.1,21,49,821/-. Since the aforesaid amount would be highly inadequate to meet the purpose for which we directed the amount to be utilised, namely for setting up of a Smog Tower, we direct the respondent No.3 to deposit the said amount in this Court within six weeks,” the order dated June 3 stated..The order was passed on an application moved by the errant company stating that the entire contract value of the project was around ₹12-15 crores. It stated that the reference/mention of the figure of ₹125 crores in its counter affidavit related to the value of the consignment of the railway coaches which had been lifted by the cranes made available under the contract in question.The Court thus corrected its error and said that the costs imposed will be 10% of ₹12.15 crore. The money recovered from the firm will now be used by the Delhi State Legal Services Authority, Delhi High Court Legal Services Committee, Prime Minister’s National Relief Fund, Armed Forces Battle Casualties Welfare Fund and the Indigent and Disabled Lawyers Committee..Senior Advocate Rajshekhar Rao, along with Advocates Karan Luthra, Pranjit Bhattacharya, and Shruti Arora appeared for the firm.Advocate Shrinkar Chaturvedi appeared for RITES Ltd (the government company which had awarded the contract)..[Read Order].Delhi High Court imposes ₹12.5 crore costs on firm for concealing facts; money to be used for installing smog towers