A hotel operator whose five-year contract was terminated challenged a fresh tender issued while its arbitration claim was pending. The court held the property cannot remain idle, refused to stay the NIT, and noted any remedy would lie only in damages if termination is found improper.
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IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.3959 of 2024
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SL Rathour Hotels Private Ltd. through its Proprietor namely Santosh Kumar (Male aged about 48 years), son of Sri Suresh Prasad Singh, residence of House No. 10 Moti Mahal Khagri Road Digha, P.S. Danapur, District-Patna.
... ... Petitioner/s
Versus
... ... Respondent/s
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Appearance : For the Petitioner/s : Mr.Diwakar Prasad Singh, Advocate For the Respondent/s : Ms. Anukriti Jaipuriyar, Advocate
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CORAM: HONOURABLE THE CHIEF JUSTICE
and HONOURABLE MR. JUSTICE HARISH KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)
Date : 04-03-2024
The petitioner is aggrieved with the fact that despite the petitioner having been awarded a contract for operation and management of a hotel for a period of five years, the contract was terminated, which dispute is now pending before arbitration, but however, the respondents have now issued an NIT, as evident from Annexure-10 for fresh tender for operation and management of the hotel.
Patna High Court CWJC No.3959 of 2024 dt.04-03-2024 2/3
the following are the terms referred for arbitration, as is found from Annexure-7/1:-
infirmity in the respondent-authority proceeding for a fresh tender. The petitioner admittedly was issued with a licence on 02.03.2020 and the licence stood terminated on 09.12.2022.
the Corporation that the termination was on account of nonpayment of Licence Fee.
Patna High Court CWJC No.3959 of 2024 dt.04-03-2024 3/3
issued merely for reason of an arbitration proceeding pending. The property cannot remain idle and the pending arbitration would decide whether the termination was proper, and if found to be improper, definitely the petitioner would only be entitled to damages and not for reinstatement in the property. In such circumstances, we find absolutely no reason to entertain the writ petition. However, we make it clear that this judgment would not, in any manner, regulate the arbitration proceedings, since the observations made herein are merely prima facie and intended at declining discretion.
(K. Vinod Chandran, CJ)
(Harish Kumar, J)
P.K.P./-
AFR/NAFR CAV DATE Uploading Date 05.03.2024 Transmission Date
1 issue framed by the court
Whether a fresh NIT for hotel operation and management can be stayed merely because arbitration over the terminated contract is pending.
SL Rathour Hotels Private Ltd. through its Proprietor Santosh Kumar
Bihar State Tourism Development Corporation Ltd. through its Managing Director
Managing Director, Bihar State Tourism Development Corporation Ltd.
Additional General Manager, Bihar State Tourism Development Corporation Ltd.
The Manager Hostel & Lodge, Bihar State Tourism Development Corporation Ltd.
K. Vinod Chandran
Harish Kumar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
