Himachal Pradesh High Court dismisses Oberoi review against verdict allowing State to take possession of Wildflower Hall property

The Himachal Pradesh High Court recently dismissed a review petition filed by East India Hotels (EIH), managed by the Oberoi Group, challenging a judgment allowing the State government to take possession of the land on which the Wildflower Hall hotel is situated [EIH Ltd & Ors v. State of HP & Ors]..Justice Satyen Vaidya held,"As evident from the grounds of review, the review petitioners have preempted the final adjudication to be made in execution petitions by this Court. In my considered view, the review petition as filed is not maintainable for more than one reason as detailed hereinafter. It is more than settled that remedy of review cannot be used as a disguise for appeal.".EIH has reportedly expressed that it will move the Supreme Court in appeal against the High Court verdict..EIH and the State had entered into a joint venture agreement to construct a five-star hotel in Shimla in 1995. The High Court in 2003 referred disputes that arose between the two to arbitration. The mandate of the sole arbitrator was to decide on the legality of the action of the State government to cancel the joint venture and whether EIH properly constructed the building in accordance with the sanction granted by the State.In 2005, the arbitrator held that the State was not legally entitled to cancel the joint venture agreement on the date on which it did so. It further directed the State to transfer of all its shares in the propery to EIH on payment of a consolidated sum of ₹12 crore. However, it said that if EIH fails to make the hotel fully commercially operational by May 3, 2002, the propetry would automatically revert to the State government.The arbitral award attained finality after the High Court dismissed challenges filed both by EIH and the State. The two parties then filed execution petitions before the Court. In its judgment passed on November 17, 2023, the High Court held that the State was free to resume and take possession of the property immediately. However, it later stayed this judgment, pending confirmation from the State as to whether it intends to take possession. The State later clarified to the Court that it intends to take possession of the property..In its review against this judgment, EIH claimed that the State had neither come forward nor had made any prayer for resumption of possession of the property. It further argued that the State admitted that it was not entitled to seek reversion of the Wildflower Hall.However, the Court noted the intention expressed by the State to take possession of the property, as recorded in an order passed in the matter on November 24, 2023. In this light, it held,"Thus, the apprehension, if any, of the review petitioners is without any basis. Viewed from another angle, the review petition would not otherwise be maintainable in view of the disposal of the prayers made in OMP No. 562 of 2023 by this Court, which necessarily were identical to the reliefs sought in the instant petition.".The dismissal of the review paves the way for the State to take possession of the property that once housed the residence of Lord Kitchener, a commander-in-chief of the British Army..Senior Advocate RL Sood and Advocates Arjun Lal, Sanjeevni Sood and Aakash Thakur appeared for EIH.Senior Advocate Dhruv Mehta with Advocates Prabhat Kumar IN Mehta and Vivek Negi appeared for the State..[Read judgment]