V.KAMESWAR RAO, J. - (1.) This is a suit filed by the Indian Hotels Company Ltd., plaintiff with the following prayers: - (a) Pass a decree of permanent injunction restraining the Defendant by itself, its servants, agents, subordinates and successors from in any manner interfering with the possession, right to operate, run and maintain the hotel premises at 1, Man Singh Road, New Delhi of the Plaintiff, as per the Collaboration Agreement dated 18th December, 1976 read with the Deed of Licence dated 18th December, 1976 and Supplemental Agreement dated 25th September 1979; (b) Pass a decree of permanent injunction restraining the Defendant, its servants, officers, agents, subordinates and/or its successors from giving effect to the decision communicated through the letter dated 5.11.2012 having No.D/389/PA/D.E. - l/2012 in respect of hotel premises at 1, Man Singh Road, New Delhi, and/or from giving effect to any known or unknown decision to conduct an auction for running /operating/ maintaining, the hotel premises at 1, Man Singh Road, New Delhi; (c) Pass any orders as the court may deem fit in the nature and circumstances of the case.
(2.) The case, as set up by the plaintiff in the plaint is, that the areas in what is popularly known as Lutyens, Delhi are governed by the special local authority which was formerly known as New Delhi Municipal Committee constituted under the provisions of Punjab Municipal Act, 1911, these areas including various lands owned by the Government of India. One of the plot, which is the subject -matter of the suit is plot known as Plot No.1, Mansingh Road, New Delhi admeasuring 3.78 acres (1,61,706 sq. feet). It is averred that vide allotment letter dated July 13, 1976 (Exh.P -1) issued by the Government of India, L&DO (Land and Development Office) addressed to the New Delhi Municipal Committee, the said plot was allotted for setting up of a Hotel. It is the case of the plaintiff that it was given to understand, no formal agreement or lease has been executed by Government of India in favour of the defendant. However, the defendant holds this land on the basis of the aforesaid allotment as a perpetual lessee.
(3.) In 1978, a conference of Pacific Asia Travel Association ("PATA") was proposed to be held. It is in order to facilitate the stay of the delegates and visitors of the PATA conference, the defendant desired to set up a five star hotel in New Delhi. However, since the defendant did not have the expertise of setting up or running a five star hotel, it was agreed that collaboration should be entered into with some expert of repute in the field. It is averred in the plaint, that the plaintiff had also applied for allotment of land for setting up a five star hotel in New Delhi and the Govt. of India had identified the said plot for that purpose. On March 3, 1976, the plaintiff addressed a letter to the defendant and offered to equip a hotel of about 300 rooms of acceptable international standards on the said plot. It is also averred that on March 31, 1976, a further letter (Annexure to Exh.P -40) was addressed by the plaintiff to the defendant proposing to construct a hotel on the subject plot. It was suggested that, at that stage the cost of the hotel building, excluding the cost of the land be borne by defendant, which will be around Rs.425 lakhs. The plaintiff would bear the costs of all other items such as equipment of kitchen, furniture and furnishing in detail, landscaping, operating, supplies etc and thereafter, there would be a revenue sharing arrangement.;