SC orders status quo on Taj Mansingh Hotel

New Delhi, Nov 21 (IANS) The Supreme Court on Monday ordered status quo on Tata group-owned Taj Mansingh Hotel here, disallowing the New Delhi Municipal Council's (NDMC) plea that the hotel should not be allowed bookings after this year ends.

Additional Solicitor General (ASG) Sanjay Jain, appearing for NDMC which owns both the land and the building, told the court that Taj Mansingh has already made bookings till December 31 and it should be restrained from making any further bookings.

Disallowing the plea, the bench of Justice Pinaki Chandra Ghose and Justice Uday Umesh Lalit said: "Running (of the hotel) can't be stopped."

At another point during the hearing, the court, declining Jain's submission, said: "We know how far we can go, we know how far we can't go."

Fixing January 10 for hearing of the matter, the bench said: "Once for all, the matter has to be decided."

As ASG Jain urged the court to permit it to start eviction proceedings against Taj Mansingh, the court observed that if the civic body could wait for 18 months (since litigation is going on), then they can wait till the matter is decided by the top court.

At this, senior counsel Harish Salve, appearing for the India Hotels Corp Ltd (IHCL), Tatas' hospitality arm, told the bench: "We will walk out of the premises if we lose."

Jain wanted the court to record this statement of Salve but the court did not oblige.

The NDMC contended that by no measure do the Tatas have a vested right to continue to run the hotel even after the expiry of the lease agreement and several extensions given to the hotel.

The IHCL had moved the top court challenging Delhi High Court's October 27 order dismissing its plea against the auctioning of the property by the NDMC.

A division bench of the high court had reiterated the September 25 single judge order dismissing an IHCL suit to renew its licence and upheld the NDMC's decision to auction the property.

The property, owned by NDMC, was given to IHCL on a 33-year lease that had ended in 2011. IHCL has since been managing the property on several extensions it has got from the municipal body.