HC dismisses IHCL plea on Taj Mansingh auction

The Delhi high court on Tuesday cleared New Delhi Municipal Corporation’s (NDMC’s) tender process inviting bids for the pubic auction of Hotel Taj Mansingh while dismissing a challenge by Tata Group-owned Indian Hotels Co. Ltd (IHCL).

“The complex nature of eligibility conditions that NDMC has insisted upon, while considering tenders for the hotel plot, are based on thought and deliberation. The realm of re-appreciation through judicial review is consequently extremely narrow,” the 15-page order stated.

IHCL had challenged the tender process for failing to factor an essential condition with respect to its unblemished track record into the eligibility conditions.

The verdict was pronounced by a bench of justices S. Ravindra Bhat and A.K. Chawla after it was reserved on 3 May.

IHCL had moved the Delhi high court first in April 2013, seeking to restrain the NDMC from auctioning Taj Mansingh Hotel after a committee declined to renew the licence in its favour for 30 years.

IHCL had claimed that the original licence agreement— with NDMC as the licensor and IHCL as the licencee—later became a joint venture with two equal partners.

After a single-judge bench refused to renew licence for a further period, saying it was not entitled for the extension, IHCL filed an appeal before a division bench of the high court.

Source:-https://www.livemint.com/Companies/Xpi8wGd6N3q66zgUCICjYK/Delhi-HC-rejects-Indian-Hotels-Company-Ltds-plea-against-te.html

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