Tata seeks restrain on the land-owning agency from auctioning the property on which the hotel is located

The Delhi High Court on Tuesday sought a response from New Delhi Municipal Council (NDMC) on a suit by Tata Group’s Indian Hotels Company (IHC). The IHC, in its suit, had urged the Court to restrain the civic body from auctioning hotel Taj Mansingh built on its land on Mansingh Road.

Issuing the notice, Justice M. L. Mehta asked the civic body to file the reply within two weeks. In the meanwhile, Justice Mehta granted liberty to the plaintiff to approach the Court if any coercive steps were taken against it by the civic body.

Counsel for the plaintiff submitted that his client had the right to continue operating the hotel as per the collaboration and licensing agreements.

“Pass a decree of permanent injunction restraining the defendant (NDMC) by itself, its servants, agents, subordinates and successors from giving effect to the decision communicated through the letter of November 5, 2012 in respect of hotel Taj Mansingh and or from giving effect to any known or unknown decision to conduct auction for running the hotel at Mansingh Road at New Delhi,” the suit said.

The civil suit also sought the court to restrain the Council from “interfering with the possession, right to operate, run and maintain hotel Taj Mansingh of the plaintiff (IHC) as per the Collaboration Agreement of December 18, 1976 read with the Deed of License and Supplemental Agreement of September 25, 1979.”

NDMC has extended the lease of IHC twice since it expired in 2011. The extended lease with revenue-sharing licence fee will expire in November. The matter will come up for hearing in July.

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