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Legal Mandate: The High Court of Himachal Pradesh directed East India Hotels (EIH) of the Oberoi Group to surrender possession of the esteemed five-star Hotel Wildflower Hall to the Himachal Pradesh Tourism Development Corporation (HPTDC) within a stipulated timeframe, which was reaffirmed by the Supreme Court’s recent decision.

Timeline: The High Court’s order was issued about a month ago, instructing EIH to relinquish control of Wildflower Hall within two months. The Supreme Court upheld this directive, compelling the hotel chain to vacate the property within a year.

Arbitration Outcome: EIH’s attempts to contest the High Court’s decision through a review petition were unsuccessful. The Court ruled that Oberoi Group had failed to comply with the arbitration award within the specified timeframe, leading to the state government’s eligibility to assume possession and management of the hotel.

Heritage Status: Wildflower Hall holds historical significance as the former residence of Lord Kitchener, a prominent figure during the colonial era. The property’s heritage status adds complexity to the legal dispute surrounding its ownership and management.

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Renovation Agreement: The legal dispute originated from a renovation agreement following a fire incident in 1993. EIH, in collaboration with the Himachal Pradesh government, entered a joint venture to renovate the property. However, the failure to meet renovation obligations led to fines imposed by the government, ultimately resulting in contract termination.

Arbitration Ruling: Despite the Company Law Board ruling in favor of EIH initially, subsequent arbitration upheld the government’s decision to terminate the agreement, granting them the right to reclaim the property.

Government’s Perspective: Himachal Pradesh’s Industry Minister emphasized the government’s stance, highlighting the lack of revenue or equity contributions from EIH over several decades. The legal victory enables the state to reclaim control of the property, aligning with its tourism development objectives.

Legal Proceedings: EIH’s legal challenges against the arbitration award and the subsequent High Court order were unsuccessful, leading to the recent Supreme Court decision mandating the surrender of Wildflower Hall. The company’s petition for a review was also dismissed by the High Court, solidifying the state’s right to take possession of the hotel.

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