The Hindu Business Line : Halcyon takeover: Kerala HC declines stay

`Reasonable time will be given to the group to vacate the premises. Besides, legitimate requests for the smooth functioning of the hotel will also be considered.'

Kochi , Sept. 28

THE Kerala High Court has refused to stay the Government Order, taking possession of Halcyon Castle at Kovalam from M-Far Hotels Ltd.

Mr Justice K. Balakrishanan Nair, however, observed that the takeover would be subject to the result of the writ petition filed by the hotel group. When the petition came up, the Additional Advocate General submitted that reasonable time would be given to the group to vacate the premises.

Besides, he added, legitimate requests for the smooth functioning of the hotel would also be considered. The court recorded these submissions and directed the respondents, including ITDC and the State Government, to file counter-affidavits within 10 days.

In the petition, the M-Far management contended that the State Government had no right or power to take over the hotel, which had been sold to the group.

The property had been handed over to the petitioner by the Union Government and the India Tourism Development Corporation (ITDC). The petitioner could not be deprived of its property merely on the basis of an executive order.

In fact, the Government had sold the Castle and its adjoining areas to the ITDC for a consideration of Rs.9. 50 lakh in 1970, it was stated.

The ITDC had been in possession of the building and its property since 1970. The Government, therefore, could not forcibly take over the property. Besides, no notice had been issued to the petitioner before passing such an order. Thus, the Government violated the principle of natural justice. Even if the Government was of the view that the petitioner had encroached on the property, proceeding under the Kerala Public Premises Eviction of Unauthorised Persons Act should have been initiated, it was contended.

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