HOTEL PALACE Vs. STATE OF J&K

JUDGEMENT

(1.) The instant appeal is a classical example of the age old principle known as "damnum sine injuria". In other words, when a party set up a rival business enterprise then the one already engaged in that business cannot make a complaint that his rights have been infringed by the rival business enterprise as he would face stiff competition. The aforesaid phrase would mean that there is damage but without causing any actionable injury (See Jasbhai Motibhai Desai v. Roshan Kumar Haji Bashir Ahmed, 1976 1 SCC 671).

(2.) The appeal has been preferred by Hotel Palace, Aabi-Karpora, Dal Lake Srinagar, against the judgment dated 12.03.2010 rendered by learned Single judge. There is a rival group of hotelier known as Hotel International, Sonawar Bagh, Srinagar which is run by Shri Gh. Nabi Aali Kadli, who is the first cousin of Manzoor Ahmad Aali Kadli of Hotel Palace. Shri Manzoor Ahmad Aali Kadli raised objection to the additions of rooms and Halls to Hotel International, bringing its capacity to 101 rooms, 11 Halls and one dining hall. He also complained that it would adversely affect his business. Thereafter, an order was passed by Deputy Director Tourism (Registration), whereby registration has been accorded to the additional block of Hotel International. The aforesaid order was challenged by the appellant-Hotel Palace before the Jammu and Kashmir Special Tribunal by filing revision petition under Section 27 of the J&K Registration of Tourist Trade Act, 1978 (for brevity the Act). The Tribunal, vide order dated 21.08.2006, set aside the registration of the new block of Hotel International by holding as under:-

(3.) Aggrieved by the aforesaid order of the Tribunal, Gh. Nabi Aali Kadli of Hotel International filed OWP no. 738/2006 relatable to this appeal, which has been allowed by the impugned judgment dated 12.03.2010, holding that once the Hotel of the writ petitioner-respondent stands registered under Section 10 of the Act, then the only obligation cast by Section 39 of the Act on a hotelier is that in case of any change it must be notified to the concerned authority and the prescribed authority is in turn obliged to make necessary changes in the register maintained for the purpose and the certificate of registration. The learned Single Judge noticed Section 39 and found that the writ petitioner-respondent fulfil all the necessary conditions for registration.