In Brief
EIH Ltd. and Oberoi Hotels had agreements with a hotel developer (BHEL) for technical services and financial accommodation (Rs. 15.12 Crores). An interim injunction restraining sale of the property without disclosing EIH's rights was granted in 2005. Despite this injunction, IFCI and Tourism Finance Corporation transferred the hotel to Robust Hotels in 2007 under SARFAESI proceedings. The Supreme Court held that actions in breach of court orders must be set aside, but where the property is already operational with third-party contracts, monetary relief (deposit of the outstanding amount) provides substantial justice. The appeals of Robust Hotels were partly allowed by modifying the deposit order timeline; EIH's appeals challenging the validity of the sale were dismissed as impractical given operational realities.
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