Supreme Court stays auction of Delhi's Taj Mansingh Hotel

Zee Media Bureau

New Delhi: The Supreme Court on Monday stayed the order of a division bench of Delhi high court which had dismissed IHCL's petition challenging the move by New Delhi Municipal Council (NDMC) to auction the property.

Indian Hotels Company Ltd (IHCL), which runs the Taj Mansingh Hotel in the national capital, had approached the Supreme Court on November 7 against the Delhi High Court order that cleared the decks for auctioning of the iconic property.

The firm had challenged the October 27 verdict delivered by a division bench of high court which had dismissed IHCLs petition challenging the move by New Delhi Municipal Council (NDMC) to auction the property.

The high court, in its verdict, had dismissed IHCL's plea saying the company has "no right" for renewal of the licence period and the NDMC was "within its power" to secure maximum consideration for grant of licence for the property situated at the prime location of 1, Man Singh Road in Lutyens Delhi.

"To put it pithily, IHCL has no right under the licence for a renewal thereof and therefore no further issue needs to be considered and decided," the high court had said while dismissing IHCLs appeal in which it had challenged a single judge order dismissing their suit seeking to restrain NDMC from auctioning the property.

IHCL had moved the division bench of high court against the September 5 judgement of a single judge who had not acceded to the firms request for renewal of licence for a further period, saying it was not entitled for the extension.

The property, owned by NDMC, was given to 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.

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.

IHCL had earlier 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.

With Agency Inputs