The Supreme Court today ordered status quo in a dispute between Bharat Hotels Ltd. and the New Delhi Municipal Council (NDMC) over the termination of a licence concerning the hotel property.
The case arose from an appeal against a Delhi High Court judgment upholding an action initiated by the New Delhi Municipal Council (NDMC) against Bharat Hotels Ltd., which operates The LaLiT New Delhi hotel, over alleged unauthorised transfer of rights in portions of the licensed property.
Read at- Delhi HC Sets Aside Relief to Bharat Hotels; Restores ₹1,063 Cr Demand and Licence Termination https://thebarbulletin.com/delhi-hc-restores-demand-licence-termination-public-interest/
The dispute concerns a long-standing licence granted by NDMC to Bharat Hotels for the development and operation of the five-star hotel and adjoining commercial towers situated near Barakhamba Road and Bengali Market in Delhi. Under the arrangement, Bharat Hotels had granted sub-licences for portions of the commercial space to various occupants.
According to the petitioners, the controversy arose after one sub-licensee attempted to transfer a small portion of the premises measuring about 470 square feet by describing the transaction as a “sale deed” before the registration authorities. Counsel submitted that the transaction was undertaken without the knowledge or consent of Bharat Hotels, and the document was ultimately withdrawn before registration after objections were raised that the property formed part of a licensed premises where sale was impermissible.
It was argued that despite no completed sale or registered conveyance coming into existence, NDMC subsequently proceeded to terminate Bharat Hotels’ principal licence on the allegation that the company had permitted an unauthorised sale within the licensed property. Bharat Hotels contended that the action was arbitrary and that a wrongly described transaction between private parties could not extinguish its rights under the original licence agreement.
NDMC, however, submitted that proceedings had been initiated in accordance with law and argued that once the licence stood terminated, the petitioners would become unauthorised occupants liable to proceedings under the Public Premises (Eviction of Unauthorised Occupants) Act.
After hearing both sides at length, the Bench of Justice BV Nagarathna and Justice Satish Chandra Sharma directed all parties to maintain the status quo with respect to the subject property until further orders. The Court also directed Bharat Hotels and connected parties to continue paying licence fees in accordance with the licence agreement. The interim protection was extended to connected matters involving similarly placed sub-licensees.