MEP INFRASTRUCTURE DEVELOPERS LTD. VS. MUNICIPAL CORPORATION OF DELHI
A private entity challenged distress and asset attachment actions taken in Maharashtra by a municipal corporation to recover ₹4,000 crores in toll tax dues. The petitioner claimed the dues were contractual and beyond Maharashtra's jurisdiction, while the municipal body argued they were statutory taxes recoverable under the Delhi Municipal Corporation Act and the Revenue Recovery Act.
The Bombay High Court held that toll qualifies as a tax, not a contractual payment, and recovery across states is legally permissible. It declined to interfere, noting its writ jurisdiction under Article 226 is discretionary and found no irregularity in the actions of Maharashtra officials.
The petition was dismissed for forum shopping and non-compliance, while the municipal body's plea against the concerned bank was allowed. The Court upheld the legality of cross-jurisdictional tax recovery.