BRIJ RAJ OBEROI Vs. STATE OF SIKKIM

JUDGEMENT

(1.) It is an application under Article 226 of the Constitution of India asking for writs in the nature of mandamus, certiorari, prohibition and also other reliefs in the form of injunctions.

(2.) A hotel, possibly the best of its kind within the State of Sikkim, is the subject matter of the writ petition. The hotel is styled as 'Norkhil Hotel' situating within the township of Gangtok. It was constructed in 1961 by the Government on Government land and the TCI was entrusted with the management of the hotel. Since the management was for from satisfactory, the Government decided to lease out the same to a private individual on long term basis.

(3.) K. C. Oberoi, now deceased, was a recognised hotelier. He was picked up by the State for the aforesaid purpose. A lease deed was executed in favour of K. C. Oberok who started to run the hotel from 1-10-1976. The lease was for a period of twenty years with provision for enhancement of rents from Rs. 50,000/- per annum to Rs. 60,000/- per annum after every 5 years' period. Unfortunately, before the expiry of the tenure of lease K. C. Oberoi expired. His son Shri B. R. Oberoi, also an experienced hotelier, was entrusted by the Government to run the hotel. A fresh lease deed/agreement was entered into on 9-9-1986 and the totel was leased out for a term of 10 years from 1-10-1986. Under the lease the new lessee was to pay Rs. 1.1 lakh per annum for the first five years and Rs. 1.5 lakhs per annum for the next five years. The lease was to expire on 31-9-1996.