Resolve lease issue by govt redress mechanism, SC tells Srinagar hotel

Adds that the representation HCI makes should be viewed sympathetically and the larger interest should be kept in mind, especially since "the petitioner is a government undertaking"

The Supreme Court disposed of a petition filed by a Central government company against the State of Jammu and Kashmir’s termination of its lease to operate its hotel near Dal Lake in Srinagar.

The petitioner, Hotel Corporation of India Limited (HCI), is a fully-owned Central Government company under the administrative control of the Ministry of Civil Aviation (MOCA). The counsel for the petitioner said that the State government had terminated the 99-year lease of their hotel without giving a show cause notice. This action would render the employees of the hotel functioning on the banks of Dal lake unemployed, the petitioner said.

The State authorities had started the eviction proceedings against the Centaur Lake View hotel in December 2021. “This would bring the functioning of the hotel with 250 rooms and a similar number of employees to a halt,” the petitioner said.

Earlier, the High Court of Jammu and Kashmir had disposed of the petition of the hotel saying that they could approach the district magistrate (appellate authority) against the action of the State government.

The apex court said it is not inclined to entertain the petition at this stage. However, it directed the appellate authority to decide and dispose of the pending appeal within four weeks from the date of this order. “It will also be open to the petitioner to make a representation before the appropriate authority/the Government Redressal Mechanism and also make a request to continue them for some time, so that it may not affect tourism,” the court ordered.

The court added that as and when such a representation by HCI is made, it should be considered sympathetically and the larger interest should be kept in mind. “More particularly, when it is reported that the petitioner is a government undertaking,” the court said.

A P Singh, Advocate, M V Kini, Law Firm, appearing on behalf of the hotel said, “Supreme Court has given a liberty to the HCI to make a representation before the appropriate authority/the government redressal mechanism regarding stay on the eviction so that it may not affect the tourism.” He was being led by KM Nataraj, Additional Solicitor General, appearing for the petitioner.

With the above observations, the court disposed of the Special Leave Petition and pending interlocutory applications, if any.