The Delhi government told a bench of Chief Justice G Rohini and Justice Jayant Nath that funds would be allocated in the next financial year and thereafter, the bye-elections can be held.
The government also said that during the months of May and June, schools would be closed and hence, the issue of manpower would also be solved as teachers can be deployed for election work.
The court, however, was of the view that it would not be appropriate to keep the 13 wards vacant for such a long time and said it will pass orders in the matter and reserved its verdict.
The court last week had told the State Election Commission (SEC) to hold bye-elections to vacant seats in 13 municipal wards of the national capital by April 30.
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The direction had come after SEC submitted that it was committed to holding bye-elections to the vacant seats in four months, if the state government provides the requisite manpower, police personnel and funds.
The court was hearing 20-year-old law student Sanjana Gahlot's PIL on bad civic condition in her village as drain water was overflowing on all streets and filth was spread everywhere with the entire village suffering due to foul smell.
Seven wards in South Delhi Municipal Corporation, four in the north and two in the east, are currently without councillors.
On November 2, the government had said it was for the Delhi election panel to take a final decision on holding of the municipal bypolls.