A bench of Chief Justice G Rohini and Justice Jayant Nath also said that the LG and government "shall ensure that the recommendations made by the Fourth Finance Commission along with the explanatory memorandum on action taken be laid before the next assembly session without fail."
"The steps stated to have been initiated for constitution of the Fifth Finance Commission for National Capital Territory of Delhi shall be concluded at the earliest and respondents No 1 and 2 (LG and Delhi government) shall ensure that Commission in accordance with the provisions of Delhi Finance Commission Act, is constituted within eight weeks from today," it said.
The court's order came on a plea filed by an NGO, Campaign For People Participation In Development Planning, seeking directions to the Delhi government and LG Najeeb Jung to "immediately release adequate funds" to three municipal bodies here to enable them to perform functions.
The Fourth Finance Commission was constituted on the recommendation of the Council of Ministers in September 2009, which was late extended time and again till December 2010. However, the same has not been implemented till date. The Fifth Finance Commission has not yet been set up for Delhi.
It has also said the court should "restrain" Delhi government and LG from interfering "with the constitutional functions and duties of the Finance Commission of Delhi and the municipalities".
The PIL was filed in the wake of the AAP government's plan to stake claim on the municipal corporation after 'safai karmacharis' of the BJP-ruled municipal corporation recently went on a protest, dumping waste on roads in the city.