New Delhi, Aug 11 The Delhi High Court has stayed a district court's decision upholding the Centre's bid to take over a portion of Sujan Singh Park here and directed the parties to maintain status quo with respect to the premises, including The Ambassador Hotel.
Justice Neena Bansal Krishna observed that the dispute arose from a 1945 perpetual lease between the Centre and Sir Sobha Singh and Sons Private Limited, and that the real-estate company's possession of the premises has been protected since 1960 despite pending litigation.
The judge's interim order came on an appeal filed by Sir Sobha Singh and Sons against the district court's June 9 decision, which overturned a civil court's 2009 ruling holding that the government's attempt to "re-enter" the premises in 1960 after the determination of the perpetual lease was illegal.
"Substantial investments were made and the entire Sujan Singh Park Complex/suit property was developed. The possession of the plaintiff has remained protected since the year 1960, pending adjudication of the disputes in accordance with law....
"It also cannot be overlooked that the property has been constructed and has remained in use for several decades since the 1960s. The impact of the impugned judgment would not only affect the rights of the appellant, but may also affect numerous persons residing in the flats constructed in the suit property," the court said in its order dated August 10.
"The operation of the judgment and decree dated 09.06.2026 is stayed and the parties are directed to maintain status quo in respect of the suit property till the disposal of the appeal," it ordered.
The judge also clarified that the June 9 decision of the district court shall not form the basis for the initiation or continuation of proceedings under the Public Premises Act.
The Estate Officer, Land and Development Office, has already issued a show-cause notice to Sir Sobha Singh and Sons on June 11, asking why they should not be evicted from the 7.58-acre premises known as Sujan Singh Park (North).
In the judgment, the court observed that the entire controversy revolves around the construction and use of the building described as the "Hotel Block" in Sujan Singh Park, and the misuse of the servants' quarters and 31 garages in the "Servants' Block".
The material, however, "overwhelmingly" indicates that the construction of the "Hotel Block" was undertaken with the knowledge and approval of the competent officers of the government and an ex post facto sanction for the hotel was granted, the court said.
Taking note of the divergent views taken by the two lower courts in the matter, the judge said the present appeal requires examination and till the issue is decided, the suit property needs to be preserved.
