How long will it take to get a decision on ‘Bangaram Resort’ case?
05 April, 2012
The lease period of M/s. Casino Hotels for Bangaram, with SPORTS was expired on 31st August 2010. Instead of giving vacant possession of the Bangaram Resort, M/s. Casino Hotels filed a Writ Petition in the High Court of Kerala challenging the notice of eviction and demanding extension of the lease period (Ref.): The issue became more complex with a bunch of petitions from the land owners of Bangaram island. The SPORTS has been collecting a huge amount from its lessee, but was giving only a marginal portion to its leaser – Said the land owners. While hearing the W.A.1517/2010 dated 22nd October 2010, the two learned Judges of the Kerala High Court, who heard the Writ Petition found that the case of M/s. Casino Hotels is untenable.
“Learned counsel appearing for M/s. Casino projected the principle of promissory estoppel and principle of legitimate expectation for contending that M/s. Casino is entitled to an automatic renewal. The claim is based on the fact that in 1988, when global tenders were accepted they had mentioned therein that they would continue for a period of 25 years. Therefore, it is pointed out that they hoped that even though the initial lease was only for a period of five years, they will be able to continue atleast till 2013. They also say that they sought renewal on 25.2.2010 and since no reply was received till 7.8.2010, they expected that the lease would be renewed”. “There is no merit in the above contention at all. From the arrangement entered into between SPORTS and M/s. Casino, it is clear that it was only for a period of five years”. The Hon’ ble Court of Kerala observed.
What now remains to be considered is the grievance of the inhabitants of the Island. Though there was a challenge to Regulations 3 and 4 of 1964 Regulation, that has been given up and their claim remains confined to the demand that they be given adequate returns for the land that have been taken from them on lease. The order of the Kerala High Court in W.A.1517/2010 dated 22nd October 2010, M/s. Casino was to hand over vacant possession of Bangaram Resort at 4.00 pm on 30-10-2010.
M/s. Casino went on appeal against this order to the Hon’ble Supreme Court of India in 4 Special Leave Petitions (SLP). The Hon’ble Supreme Court did not allow them to entertain any guests but also did not allow UTL Administration to dispossess them till the final orders of the Court. The Bangaram Resort now remains closed, and the matter is pending final decision before the Supreme Court.
Bangaram Island Resort & The CGH Earth Hotels
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