The Royal Western India Turf Club on Wednesday appealed to the Bombay High Court to appoint a court receiver to handle its dealings with those who run Gallops restaurant at Mahalaxmi race course until their dispute is settled.
The Turf Club had given the BJP Group the rights to run Gallops for an annual rent of Rs 3.25 crore under a 10-year contract signed on July 1, 2008.
As the BJR Group refused to pay this rent after the first year, the RWITC terminated the contract and invoked the arbitration clause.
BJR Group moved the City Civil Court to protect its rights claiming that it was given exclusive possession for 22 years. BJR Group had claimed that it was a sub-tenant and hence liable only to pay a standard annual rent of Rs 3 lakh.
In November, BJR Group had moved the Small Causes Court seeking protection. The court has directed that status quo be maintained — that BJR Group should not be evicted.
The RWITC’s counsel argued that a bogus claim of tenancy was being made. They said the contract with BJR Group was “unambiguous” and every aspect was controlled by the RWITC with a specific license given to supply food and drink in a specific place to members and their guests.
In the HC, the RWITC pleaded that the receiver collect the rent and whatever the outcome the arbitrator could adjust equities later.