The Delhi High Court on Wednesday gave the nod for a public auction of luxury hotel Taj Mansingh ruling in favour of New Delhi Municipal Council. A bench of Justices S Ravindra Bhat and A K Chawla dismissed the plea filed by the current operator, Tata group’s owned Indian Hotel’s Company Ltd (IHCL), to renew the licence and upheld NDMC’s decision to go for auction.
The hotel was mired in dispute with the council over licence-related issues. The High Court held that collaboration between NDMC and IHC for the hotel was not a joint venture, as claimed by the company. IHCL had pointed out to the HC that it had completed construction of the hotel building, consisting of approximately 300 rooms, with all other allied facilities and started the commercial operation of the hotel with effect from October 10, 1978.
The agreement period of 33 years is reckoned from the said date. At that point of time, the plaintiff incurred an expenditure to the tune of INR 461.61 lakh. The Tata group had moved the division bench of the high court against the September 5, 2016, judgement of a single judge who had not acceded to the firm’s request for renewal of licence for a further period, saying it was not entitled for the extension.
The property, owned by the NDMC, was given to the IHCL on a lease of 33 years. 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.