New Delhi: The Delhi High Court on Thursday dismissed the plea against the auctioning of the Taj Mahal Hotel by New Delhi Municipal Council (NDMC).
The appeal was filed by the Indian Hotels Company Ltd (IHCL), which runs the Taj Mahal Hotel on 1, Man Singh Road in the national capital.
A bench of Justice Pradeep Nandrajog and Pratibha Rani, while pronouncing the judgement, said, “The appeal is dismissed.”
In its defence, the Tata group has told the Delhi High Court that the group has invested 21 times more than what New Delhi Municipal Corporation (NDMC) has done.
Senior advocate Harish Salve who is representing the Taj Mahal Hotel told Delhi HC that NDMC has invested merely Rs 6 cr while, Taj pumped in over Rs 129 cr, paid license fee of over Rs 400 crore.
The company further said that Tata Group has contractual right of renewal and NDMC must renegotiate with Taj.
The company pointed out that Taj is not a mere lease holder and partnered NDMC in building brand and it can't be expected to bid for value that Taj itself created.
The division bench had on October 24 reserved the verdict on IHCL's plea in which they have challenged the single judge order dismissing their suit seeking to restrain NDMC from auctioning the property.
The single judge, in his September 5 judgement, had not acceded to IHCL's request for renewal of licence for a further period saying it was not entitled for the extension.
"In view of the discussion above, and the request of the plaintiff (IHCL) for renewal of licence for further period has not been acceded to and noting that the plaintiff has no right seeking renewal or grant of licence for further period and the decision of the defendant (NDMC) to go for auction, the plaintiff is not entitled to extension of licence as claimed in the suit," the single judge had said in its verdict.
The property, owned by NDMC, was given to IHCL on a lease for 33 years in 1978. The lease had ended in 2011 and the company was given nine temporary extensions since then on various grounds, with three of them granted last year itself.
NDMC had in January this year said it was in the process of assessing the assets of the hotel in preparation for the much-delayed auction of the property.
IHCL had approached the single judge bench seeking a decree of permanent injunction restraining the NDMC from interfering in any manner with the possession, right to operate, run and maintain the hotel premises at the prime location of 1, Man Singh Road in Lutyen's Delhi.
It had also sought a direction to restrain the NDMC from conducting an auction for running the hotel premises.
(PTI inputs)
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