Hotel Leelaventure asked to pay ₹258 crore royalty to AAI

DELHI: Delhi High Court upheld its single judge decision asking Hotel Leelaventure Ltd to pay Rs 258 crore to Airports Authority of India (AAI) as royalty for possession of its property near Mumbai International Airport.

“We affirm the destination reached by the single judge notwithstanding the route taken not being reflective of the journey undertaken by the parties before the single judge. Correcting the path, we reach the same destination,” a bench of justices Pradeep Nandrajog and Pratibha Rani said, reports PTI.

Hotel Leela had moved the division bench challenging the single judge’s July 15 this year verdict setting aside the arbitration award in favour of Leela Venture in 2012.

The arbitration award had declared that payment of royalty by Leela has become impossible and therefore the parties may enter into a new contract in relation to possession of the property near Mumbai Airport.

The arbitrator had also discharged Leela from liability of paying royalty to AAI.

While dismissing Leela’s plea, the division bench said, “The award is perverse and is liable to be set aside”.


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