Supreme Court directs Hotel Picnic to wind up operations in 3 weeks

This is to make available the land for metro station

September 23, 2011 03:15 am | Updated 03:15 am IST - New Delhi:

Making it clear that the land on which Hotel Picnic is functioning near the Chennai Corporation building was required for a metro station, the Supreme Court on Wednesday directed the hotel to wind up its operations in three weeks.

A Bench of Justice Aftab Alam and Justice Ranjana Prakash Desai in a brief order stated: “As prayed for senior counsel Harish Salve, appearing for the petitioners, Rajendra Gupta and others, put up on October 14. This is to enable the petitioners as stated by Mr. Salve to wind up the hotel running on the site. In the meanwhile P.S. Narasimha, senior advocate appearing for the respondents Chennai Corporation will also take instructions for a final settlement of the matter.”

During the course of hearing Justice Alam told Mr. Salve, “We are not inclined to interfere in this case exercising our discretion Under Article 136 of the Constitution since larger public interest is involved for the purpose construction of metro station.”

When Mr. Salve said there was lease and sub lease, Justice Alam said “the matter should be given full quietus in this Court without prolonging the litigation in High Court in a civil suit.”

Meagre rent

When Mr. Salve pleaded that three weeks might be granted to wind up the hotel and for settlement of compensation, Justice Alam said you (Hotel Picnic) have also made profit for a long time in running Hotel by paying meagre rent.

Senior counsel Mr. Narasimha and counsel B. Balaji, strongly opposed any interim order to be passed by the court saying that the land was required for a public purpose.

The special leave petition by Mr. Gupta and others was directed against an order passed by the Madras High Court dated September 15 directing the surrender of the land. The SLP said that they were in possession of the land and were allowed to put up the hotel. Contending that surrendering the land would result in hardship they pleaded for quashing of the impugned judgment and an interim stay of its operation.

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