Business Standard

SC permits NDMC to e-auction Taj Mansingh Hotel

IANS  |  New Delhi 

The Supreme on Thursday allowed the Municipal Council to go ahead with the e-auction of the property housing the iconic Taj Mansingh Hotel here, currently run by Tata Group's Company Ltd. (IHCL).

An apex bench of Justice Pinaki Chandra Ghose and Justice Rohinton Fali Nariman said the IHCL will have six months to vacate the building -- known as Taj Mansingh -- in case the MUnicipal Council (NDMC) does not succeed in its e-auction.

The said the NDMC will keep in mind that the IHCL has an unblemished track record in hotel management.

Appearing for the IHCL, senior counsel Harish Salve told the that the proposed auction was not right as they have certain contractual rights for lease renewal.

Pressing for the right of first refusal if the property housing Taj Mansingh was to go under the hammer, Salve told the that at some point "we must get renewal opportunity as our track record has been unblemished".

The IHCL had challenged the High Court's October 27 order dismissing its plea against the auction of the property by the NDMC.

The apex had ordered for a status quo on November 21, 2016,

Earlier, a division bench of the High had reiterated the September 25 single-judge order that dismissed an IHCL suit to renew its licence and upheld the NDMC's decision to auction the property.

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

--IANS

pk/tsb/vt

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 20 2017. 17:28 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU