Hotel Leelaventure may challenge the Delhi HC order directing it to pay Rs 258 crore to the Airport Authority of India (AAI) as royalty for possession of the latter's property near the Mumbai International Airport.
Hotel Leelaventure is exploring legal options and may approach the Supreme Court against the the Delhi HC order directing it to pay Rs 258 crore to the Airport Authority of India (AAI) as royalty for possession of the latter's property near the Mumbai international airport. "The company is exploring legal options, including moving the Supreme Court," Hotel Leelaventure told BSE.
It further said: "We confirm that the division bench of the Delhi High Court has, in substance, upheld the single judge order dated July 15, 2016 in the matter of company and AAI." Hotel Leelaventure owns and manages The Leela Palaces, Hotels and Resorts, which owns 5 hotels, and the rest are only managed by the Mumbai-based hospitality provider.
On Monday, the division bench of the high court had upheld the decision of a single judge directing Hotel Leelaventure to pay Rs 258 crore to AAI as royalty for possession of its property near the Mumbai international airport. Hotel Leela had moved the division bench challenging the single judge ruling setting aside the arbitration award in favour of Leelaventure in 2012. AAI, which owned 29,000 square metres near the Mumbai airport, had leased land measuring 9,000 sq metres each to Leela Scottish Lace and Leelaventure Ltd leaving behind 11,000 square metres, which initially was given on a licence to Leela.
The dispute relates to the rest 11,000 sq metres of land leased to Leela in February 1996 for 30 years for constructing a wing of 150 rooms to the existing hotel building. The arbitration award had declared that payment of royalty by Leela has become impossible and therefore the parties may enter into a new contract in relation to possession of the property near the Mumbai airport. The arbitrator had also discharged Leela from liability of paying royalty to AAI.
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