Hand over Wildflower Hall to ​Himachal Pradesh govt: HC to hotel chain

SHIMLA: The High Court of Himachal Pradesh has directed the East India Hotels Limited (Oberoi group) and others to vacate the entire property (Wildflower Hall Hotel), part of of a joint venture agreement (JVA), and hand over its "vacant, peaceful possession" to the Himachal Pradesh government within two months of the date of passing the order.

The HC, which had reserved the judgment on December 15 last year, decided the matter on Friday. Compliance of judgment has been sought by the next date of hearing March 15.

Justice Satyen Vaidya held that non-applicants (East India Hotels Limited and others) have failed to comply with the terms of award within 3 months of the date it attained finality, on October 13, 2022. Consequently, the board of directors' resolution and government decision of February 7, 2002, have automatically been revived.

According to the judgment, Himachal Pradesh has become entitled to take possession and management of the 'Wildflower Hall Hotel' along with entire property.

Parties have further been asked to give their preferences for the appointment of reputed chartered accountants for settlement of disputed accounts of the Mashobra Resorts Limited (MRL) in terms of the award of July 23, 2005, passed by the arbitrator.

Justice Satyen Vaidya stated that there was nothing in the July 23, 2005, award which suggested that the terms of lease deed would be decided by the state. In fact, the award itself had fixed the terms of the lease, and what was required from the non-applicants was to give formal and practical effect by execution of a formal lease deed, encompassing the terms already settled by way of award.

By way of instant application, the state government had sought direction for the possession of the property including the land, building and structures and any other immovable assets which might have been raised by the Joint Venture Company on the Wildflower Hall Estate. Court was requested to direct the East India Hotels (EIH) Limited/MRL to facilitate and co-operate to give immediate peaceful possession of the property.

State government had averred that since the EIH limited has failed to comply with the directions/conditions of the arbitral award dated July 23, 2005, it has taken a decision to resume the "Wildflower Hall" property and take its possession as per the award.

The non-applicants (EIH and others were opposing the prayers made in the application, primarily, on the ground that they have already complied with the directions of the July 23, 2005, award.


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