The Delhi High Court on Tuesday restrained New Delhi Municipal Council from taking any "coercive step" against Tata group firm Indian Hotels Company a day before the civic body's meeting on Wednesday to finalise the terms of the auction for the disputed Taj Mansingh hotel.
IHC (the Taj group) operates the hotel in an NDMC property under a long-term lease agreement with the civic body, which expires this October. While NDMC wants to auction the hotel,
IHC has claimed part ownership of the property in an injunction suit it filed last week, queering the pitch for the auction.
Issuing notice to NDMC, Justice ML Mehta said the court will consider IHC's plea seeking an interim stay on the auction on the next date of hearing on July 18 and allowed the council to respond to the injunction within two weeks. The court added that if NDMC takes any coercive steps against IHC, then the hotel operator will have the liberty to approach the court.
The council of the civic body is to meet on Wednesday to discuss and approve the request for proposal that contains to terms of the auction and conditions of the tender. The chairperson of NDMC, Archna Arora, said the meeting is a regular one and the RFP and the auction are part of the agenda. "During the course of hearing, the Delhi High Court today asked NDMC to respond to Indian Hotels Company Limited (IHCL) on the injunction suit filed on 4th April 2013...additionally, Indian Hotels Company (IHCL) has been granted liberty to approach the court if any coercive steps are taken against it by the NDMC. The court order has been applied for and is awaited. As the matter is now sub judice, we are not in a position to comment on this any further," IHC said in a statement.