ROBUST HOTELS PVT. LTD. & ORS. versus EIH LIMITED & ORS.

ROBUST HOTELS PVT. LTD. & ORS. versus EIH LIMITED & ORS.

The directions issued by the Division Bench of the High Court regarding deposit of Rs. 15.12 Crores were proper and complete justice between the parties; refusal of interim injunction against hotel operation and transfer cannot be faulted, especially as the issues are pending adjudication in other suits; court orders must be complied with and cannot be ignored by parties or third parties; further directions for injunction were unnecessary as the deposit requirement sufficed; appeals disposed accordingly.

Parties
Appellant: Robust Hotels Pvt. Ltd.; Respondent: EIH Limited; Respondent: Oberoi Hotels Private Ltd.; Respondent: Balaji Hotels & Enterprises Ltd. (BHEL); Respondent: Balaji Industrial Corporation Ltd.; Respondent: IFCI Ltd.; Respondent: Tourism Finance Corporation of India Ltd. (TFCI)
Jurisdiction
India
Judgment Date
07 December 2016
Procedural Posture
Civil Appeal / Supreme Court Appeal From High Court Disposition, Interlocutory Stage
Outcome
Civil Appeal Nos. 11886-11887 of 2016 disposed of by modifying Division Bench order; Civil Appeal Nos. 11888-11889 of 2016 dismissed.
Legal Topics
Technical Services Agreement, Interim Injunction, SARFAESI Act Proceedings, Deposit of Sale Amount, Jurisdiction Bar Under Section 34 of SARFAESI Act
Contract Law Injunction Company Law Technical Services Agreement Interim Injunction SARFAESI Act Proceedings Deposit of Sale Amount Jurisdiction Bar Under Section 34 of SARFAESI Act

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Parties

Robust Hotels Pvt. Ltd.

Appellant

EIH Limited

Respondent

Oberoi Hotels Private Ltd.

Respondent

Balaji Hotels & Enterprises Ltd. (BHEL)

Respondent

Balaji Industrial Corporation Ltd.

Respondent

IFCI Ltd.

Respondent

Tourism Finance Corporation of India Ltd. (TFCI)

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal From High Court Disposition, Interlocutory Stage

Legal Issues

  1. 1 Whether Division Bench of High Court was correct in directing deposit of Rs. 15.12 Crores and refusing interim injunction.
  2. 2 Whether interim injunction regarding hotel transfer and operation was properly issued/enforced.
  3. 3 Effect of technical agreement termination and liability communication upon sale/transfer under SARFAESI Act.

Ratio Decidendi

The directions issued by the Division Bench of the High Court regarding deposit of Rs. 15.12 Crores were proper and complete justice between the parties; refusal of interim injunction against hotel operation and transfer cannot be faulted, especially as the issues are pending adjudication in other suits; court orders must be complied with and cannot be ignored by parties or third parties; further directions for injunction were unnecessary as the deposit requirement sufficed; appeals disposed accordingly.

Court Disposition

Civil Appeal Nos. 11886-11887 of 2016 disposed of by modifying Division Bench order; Civil Appeal Nos. 11888-11889 of 2016 dismissed.

Orders

  • Deposit of Rs. 15.12 Crores by erstwhile owner or Robust Hotels Pvt. Ltd. into O.S. No. 12159 of 2010 before 31st January, 2017.
  • No further interim injunction granted; directions of Division Bench affirmed to specified extent.