Cox & Kings Writ Against Taj Arm Spiked

The Mumbai city civil court yesterday turned down a Cox & Kings application seeking interim relief for an injunction on Taj Trade and Transport Company, (TTT), restraining it from interfering and obstructing Cox and Kings from carrying out its business and stopping its personnel from occupying their offices. TTTs case was argued by P K Pundit.

Travel and tourism major Cox & Kings had moved the court following the severance of its long standing contract with the travel desk of the Taj group of hotels by virtue of which C&K was to manage, operate and advise the travel desks of the Taj properties for a period of 75 years.

 

TTT, an associate of the Taj group, had terminated its contract with Cox and Kings recently. In June, 1996, C&K was appointed by Taj Trade and Transport Company to advise, operate and manage its travel desks. In a communique issued some time last week, TTT severed all links with the travel company.

The severance of relations come in the wake of last years retirement of Ajit B Kerkar from the board of the Indian Hotels Company as managing director and chairman.

It may be noted that C&K is run and managed by Kerkars son Peter Kerkar. Following the souring of relations between Ajit Kerkar and the Tatas late last year, Peter Kerkar had sought a meeting with the Tata group supremo Ratan Tata to review the business relations between Cox &Kings and the Taj Hotel chain. However, the meeting never took place.

The new management, which took charge of affairs at Indian Hotels under its new managing director, R K Krishna Kumar and deputy managing director, S Ramakrishnan, had decided to review the entire gamut of operations of the hotels major including a detailed assessment, and a review of the existing arrangement in TTT.

The move to severe relations with C&K is expected to maximise customer services and introduce multiple service providers for travel-related services. TTT was hitherto extending services on ticketing and car hire.

TTT had, in June, 1996, tied up with Cox and Kings on an exclusive all-India basis for an initial period of 25 years, renewable only at the option of Cox and Kings for a further period of 50 years i.e. a total period of 75 years.

The terms of profit sharing between TTT and Cox and Kings were detrimental to the interests of TTT and its shareholders, claimed industry sources close to the hotel chain.

Apart from disadvantageous commercial terms, various other issues have led to an unsatisfactory situation, the sources said.

In view of these adverse conditions, the Taj group decided to broadbase its service providers by bringing in new and competitive agencies, sources said.

The new arrangement of the Taj group with alternate agencies have come into force, and the management expects significant enhancement in the quality of service that will be extended to its guests, the sources added.

Taj Trade and Transport Company, after getting due legal opinion, has said that the document of agreement does not have any validity in law, and has terminated the appointment of Cox and Kings to advice, operate and manage the travel desks at various Taj hotels or to render any service at all to TTT with immediate effect, the sources pointed out.