HC to pronounce verdict Thursday in National Herald eviction case

Press Trust of India  |  New Delhi 

The is likely to pronounce on Thursday its verdict on a plea by publisher challenging a order to vacate the premises here.

During the arguments earlier, AJL, represented by Abhishek M Singhvi, had said that transfer of the company's majority shares to Young India (YI) would not make and his mother the owners of building here.

He also contended that the Centre never raised the issue of lack of activity at building prior to June 2018, by when publishing of some of its had already commenced.

The Centre, represented by Tushar Mehta, had argued that in the manner the shares were transferred, the court needs to "pierce the corporate veil" of to see who owns the premises -- Herald House -- leased to it for running a press.

The government had contended that the land in question was allocated to on lease for press and this "dominant purpose" was stopped several years ago.

AJL has appealed against the single judge's December 21, 2018 order that directed it to vacate the premises at ITO within two weeks, after which proceedings under the Public Premises (of Unauthorised Occupants) Act, 1971, would be initiated.

The had also said that by transfer of AJL's 99 per cent shares to YI, the beneficial interest of AJL's property worth Rs 413.40 crore stands "clandestinely" transferred to YI.

In its order, the had said that AJL has been "hijacked" by YI, in which the Gandhis are shareholders.

The Centre had contended before the court that transfer of 99 per cent stake in AJL to YI, which bought over the Rs 90 crore debt for a consideration of Rs 50 lakh, led to a "virtual" sale of building at ITO.

The December order had come on AJL's plea challenging the Centre's order to vacate the building.

The Centre had ended its 56-year-old lease and asked AJL to vacate the premises, saying no printing or publishing activity was going on and the building was being used only for commercial purposes.

The L&DO had ended the lease - entered into with AJL on August 2, 1962 and made perpetual on January 10, 1967 - asking the company to hand over the possession by November 15, 2018.

In its plea, AJL has also said the digital versions of English newspaper National Herald, Hindi's and Urdu's have commenced from 2016-17.

The 'on Sunday' resumed on September 24, 2017, and the place of publication was the ITO premises, AJL said, adding that the Sunday was being published since October last year from the same premises.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, February 27 2019. 19:45 IST