In a significant ruling, the Bombay High Court upheld the Airports Authority of India’s (AAI) right to evict The Leela Mumbai from leased airport land near Chhatrapati Shivaji Maharaj International Airport (CSMIA). This decision impacts the hospitality giant, signaling challenges for businesses operating on public premises under similar agreements.
The court, led by Justice Somasekhar Sundaresan, ruled that the leased land constitutes “public premises” under AAI’s ownership, and disputes related to eviction fall outside the arbitration agreement between the parties.
HLV Limited, parent company of The Leela, had leased three parcels of land from AAI to construct a hotel, flight kitchen, and a hotel wing. Two leases expired in 2012, and the third ended in March 2024. Despite expiry, HLV continued operations, prompting AAI to invoke eviction provisions under the Airports Authority of India Act, 1994.
HLV argued the leases were joint venture agreements and had amalgamated private and public lands. However, AAI’s counsel emphasized the land remained “public premises” with disputes excluded from arbitration.
This ruling reaffirms AAI’s authority and highlights the need for hospitality operators to navigate public land agreements with diligence to avoid operational uncertainties.
Source: HT
