Maintaining of law and order is "next to impossible", a bench of Acting Chief Justice Gita Mittal and Justice C Hari Shankar said.
The court's observations came on the submissions of a Delhi resident that his wife and children were tortured because he had filed PILs against illegal encroachments and constructions near Nizamuddin Dargah and other parts of the city.
The man said his wife was secretly videographed and his 12-year-old son was beaten up by people in the presence of police personnel.
"This is the third instance, we have been reported about. Their is a mob of 50 persons attacking a woman. It requires courage among the public to come to the court.
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"Instead of abiding by the law and the court's direction, the petitioner and his family members are targeted," it said, adding that "Delhi has become such a difficult place to uphold the rule of law".
"We are struggling to see that Delhi follows the law so that we don't have to pass any order and no one has to move the court," the bench added.
The man, who is in his 40's, had approached the court against illegal encroachments on streets near Dargah Hazrat Nizamuddin Aulia here, on behalf of Jamia Arabia Nizamia Welfare Educational Society.
He has also alleged misuse of the name of the 'Dargah' by tour operators.
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