Hand over Wildflower Hall to Himachal Govt, High Court tells hotel chain

Vijay Arora

Shimla, January 5

The HP High Court today directed the East India Hotels (EIH) Ltd to vacate and ensure peaceful handover of the entire property of Wildflower Hall to the Himachal Government within a period of two months.

Protracted dispute over control OF property

• The state government and the East India Hotels Ltd have been engaged in a protracted legal dispute over the control of the colonial-era hotel, spread over 100 acres amidst a deodar forest, 12 km from Shimla
• The heritage property, built by Lord Kitchener in 1925, was gutted in 1993, following which the state government and the Oberoi group tied up to set up a high-end hotel
• The BJP regime annulled the pact in 2002 and the arbitration award was given in favour of the government in 2005, which the company had challenged

Justice Satyen Vaidya observed, “It is held that the EIH Ltd has failed to comply with the terms of award within the period of three months from the date it attained finality, i.e. October, 13, 2022. Consequently, the Board of Directors’ resolution and government decision, dated February 7, 2002, have automatically revived. “The State of Himachal Pradesh has become entitled to take possession and management of the Wildflower Hall hotel along with the entire property that was subject matter of the Joint Venture Agreement (JVA) between the state government and the EIH Ltd,” the order reads.

Passing this direction, the court listed the matter for compliance on March 15. The court passed this order on an application filed by the state government seeking warrant of possession of the property.

It was contended that since the EIH Ltd had failed to comply with the directions/conditions of the award passed by the Arbitrator on July 23, 2005, the state government had taken a decision to take possession of the hotel.

The court also dismissed the review petition filed by the EIH Ltd, where it had sought a review of the order passed by the court on November 17, 2023, whereby the court had granted the right to the state to resume and take possession of the property immediately on non-compliance of the obligation by the EIH Ltd and others within the stipulated period.

He court said the state government was free to resume and take possession of the property immediately. In case the state government does not choose to avail such option, the EIH Ltd is directed to take steps with respect to cancellation of conveyance deed dated February 6, 1997, and update of revenue records of rights and thereafter to immediately take steps for the execution of lease deed, the order read.

While dismissing the review petition, Justice Vaidya observed, “This Court, while exercising jurisdiction as Executing Court, cannot deviate from the terms of the award as passed by the learned Arbitrator, which has been sought to be executed by both sides.”

He further observed, “It is more than settled that remedy of review cannot be used as a disguise for appeal.”

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