The counsel for CJ International, operator of Delhi’s Le Meridien Hotel, which is on notice from the New Delhi Municipal Council (NDMC) for non-payment of dues, told Acting Chief Justice Gita Mittal of the Delhi High Court on Wednesday (September 27) that they have already paid Rs 150 crore to the NDMC (against the demand of approximately Rs 605 crore) and that the CBI investigation should be called off.
The NDMC had issued a public notice against CJ International, threatening to cut its power and water connections over non-payment of dues to the tune of Rs 605 crore. NDMC wants a full eviction.
That move came days after the Delhi High Court had dismissed a plea of CJ International, seeking a stay on eviction proceedings and coercive action by the NDMC over alleged non-payment of dues.
According to the public notice, “CJ International Limited is defaulter of arrears about Rs 605 crore (approximately)” and the council has asked people to deal with the hotel at “their own risk”.
“The licence deed between NDMC and M/s CJ International dated 14.07.1982 was terminated on March 2, 2017… whereas, time to time notices have been issued to M/s CJ International Ltd to make payments to NDMC and eviction proceedings were initiated under PP Act 1971 and the same is pending…,” the notice read.
It also said: “M/s CJ International was put on notice on 27.7.2017 for coercive action that may be taken by NDMC including disconnection of electricity and water for non compliance of terms and conditions of licence deed. Now therefore, the general public/stakeholders may deal with the above entity/enterprise at their own risk.”
Earlier, the high court (a single judge bench) had ordered de-sealing of a commercial tower on the Le Meridien premises, granting relief to more than 90 occupants of the building. This tower was sealed by the NDMC a day after the high court had dismissed the hotel’s plea seeking a stay on the eviction order.
There are two towers on the hotel premises out of which the smaller one had been sealed. The nine-floor building houses many national and international office complexes.
“Petitioners (occupants of the tower) have not been granted hearing or issued show-cause notices. Hence order is not sustainable,” the court had said.
On Wednesday, CJ International approached the court of the Acting Chief Justice against the order of September 18 of Justice Indermeet Kaur.
Senior counsel AS Chandiok, appearing for the hotel, said “…we paid the tax from 2001 after the impugned order given on May 18, 2001.”
The NDMC’s counsel submitted that CJ International paid Rs 150 crore through post-dated cheques. “After the 2001 order, we investigated in detail before demanding this amount,” the counsel said.
Chandiok said: “…we paid Rs 100 crore before March 1, and the second payment of Rs 50 crore was made on April 20. This amount was demanded by the NDMC. When I paid, they said we have to calculate the amount again. NDMC took Rs 150 crore from us and put us in jeopardy.” The counsel appealed that all previous orders be set aside and the case be heard on merit. The counsel also asked for the CBI investigation to be stopped.
The NDMC counsel said that the Rs 150 crore was a provisional amount and that the total calculation had not been made at that point of time.
The arguments on this will continue on October 12.
—India Legal Bureau