HC rejects IHCL’s suit against NDMC auction order

New Delhi, Sep 5 (PTI) Delhi High Court today dismissed asuit by the Indian Hotels Company Ltd (IHCL), which runs theiconic Taj Mansingh Hotel here, seeking to restrain New DelhiMunicipal Council (NDMC) from auctioning the property. Justice V Kameswar Rao did not accede to IHCL’s requestfor renewal of licence for a further period saying it was notentitled for the extension. "In view of the discussion above, and the request of theplaintiff (IHCL) for renewal of licence for further period hasnot been acceded to and noting that the plaintiff has no rightseeking renewal or grant of licence for further period and thedecision of the defendant (NDMC) to go for auction, theplaintiff is not entitled to extension of licence as claimedin the suit," the court said. The property, owned by NDMC, was given to IHCL on a leasefor 33 years. The lease had ended in 2011 and the company wasgiven nine temporary extensions since then on various groundswith three of them being in the last year itself. NDMC had in January this year said it was in the processof assessing the assets of the hotel in preparation for themuch-delayed auction of the property. IHCL had approached the high court seeking a decree ofpermanent injunction restraining the NDMC from interfering inany manner with the possession, right to operate, run andmaintain the hotel premises at the prime location of 1, ManSingh Road here. It had also sought a direction restraining the NDMC fromconducting an auction for running the hotel premises inLutyen’s Delhi. PTI ABA PPSARC