SC cracks whip on Gallops: Pay 18cr in 6 wks or be evicted

MUMBAI: The Supreme Court on Friday directed BJR's, which runs a fine dining restaurant, Gallops, at Mahalaxmi racecourse to pay the turf club Rs 18 crore within six weeks.
If it fails, the SC bench of Chief Justice Dipak Mishra and Justice D Y Chandrachud said, the club could move court in Mumbai for its eviction.

It's yet another round of success for the Royal Western India Turf Club (RWITC) in their almost decade-long battle over the restaurant space. The dispute started in 2009 in the Bombay HC after the club terminated its 2008 "catering contract'' with Gallops.

The HC first appointed an arbitrator in 2011. Last September, the arbitration process concluded with BJR's told to pay Rs 34 crore as damages to RWITC with interest since 2009, totalling around Rs 50 crore. This January, the arbitrator further directed BJR's to remove its restaurant and all related infrastructure from the racecourse premises.

BJR's moved HC against the eviction bid and also challenged the damages. The HC stayed eviction, but directed it to deposit 50% of the damages, pending its appeal. BJR's went to SC, which has now asked it to pay up.

Senior counsel K Viswanathan with advocate Purazar Fouzdar argued against the deposit, saying the arbitrator had no jurisdiction to adjudicate what, according to them, was a tenancy dispute. The amount based on the HC order would have been almost Rs 24 crore, the SC was told, and after some submissions, the SC agreed to let BJR's deposit Rs 18 crore in the HC, which the club can then withdraw.

Soli Cooper, senior counsel for RWITC, submitted that the club had not been paid anything for 10 years and the HC order ought to be complied with.

Vivek Jain, former chairperson of RWITC, said his "consistent stand of contesting the illegal tenancy claims of Gallops" during his tenure "has been vindicated with the decision of the SC".

Gallops had claimed that it is the club's tenant at the Mahalaxmi Racecourse since 1986. The club, itself a lessee of the Municipal Corporation of Greater Mumbai since 1914, said it was not authorised to induct any sub-tenants.