KoD obtains stay order on HSVP lease termination

Gurugram: Kingdom of Dreams (KoD) management on Friday obtained a stay order on a notice to terminate their lease agreement issued by the Haryana Shahari Vikas Pradhikaran (HSVP)

Gurugram: Kingdom of Dreams (KoD) management on Friday obtained a stay order on a notice to terminate their lease agreement issued by the Haryana Shahari Vikas Pradhikaran (HSVP). HSVP sealed the cultural hotspot in Sector 29 for non-payment of dues to the tune of over ₹100 crore on Friday.

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KoD approached the court on Friday as soon as HSVP teams sealed the main gate. Rajiv Goel, additional district judge, exclusive commercial court granted ex-parte interim injunction in favour of KoD.

“Having considered the contentions so made and perused the file, it is directed that till next date of hearing, respondents shall not cause any interference in the possession of petitioner over the auditorium building in any manner except in due course of law. The order is subject to compliance of Order 39 Rule 3 CPC which be made forthwith,” the court order said.

The court also issued notice to HSVP to submit a reply on August 18 , a copy of which is available with HT.

“We filed a petition on Friday for granting ex-parte interim injunction against the dispossession of petitioner from KoD’s auditorium building of KOD in Sector 29. We have contended that respondents are bent on taking forcible possession of the building,” said Vinay Shukla, counsel for KoD. He said that HSVP sealed the cultural facility despite being intimated of the stay order granted by the court.

According to a KoD senior official, HSVP issued a notice on July 6, terminating the lease agreement signed on February 15, 2008. he claimed that the management did not receive the notice. “The lease is valid till July 29, 2024. HSVP officials visited KoD again on Friday night and sealed remaining gates despite knowing that interim relief has been granted to us. They are intentionally harassing us,” he said.

On the other hand, the HSVP officials said they are unaware of any interim stay order. “The property is in our possession and we have already terminated the lease. We will submit our reply in court once we receive the notice. We have acted in accordance with law and followed due process. During sealing, we asked the management to provide lease documents in presence of a duty magistrate, but they failed to do so,” said Sanjeev Singla, estate officer -II, HSVP.

KoD, operated by the Great Indian Nautanki Company, initially owed ₹42 crore to HSVP, but the amount kept compounding due to non-payment of dues, officials informed. KoD was issued several notices for non-payment of dues and the authority was on the verge of closing it down before a proposal was submitted by the management seeking help from the state government. One such notice was issued in September last year, when HSVP asked KoD developers to clear the then total accumulated rent of ₹107 crore, including interest.

HSVP leased 5.66 acres (auditorium site and building) in Sector 29 to KoD for 15 years in 2008. The monthly rent was ₹36 lakh with a condition that it would increase by 10% every three years. In 2014, the company reneged on payment and sought an exemption. As part of the exemption, developers sought an extension of lease period from 15 to 99 years, along with a extension of rent moratorium from 12 (from the date of allotment) to 44 months, and permission to sub-lease the land.

Officials said while KOD defaulted on paying ₹108 crore in rent, HSVP imposed a penalty of only ₹100 crore . KoD have also been accused of encroaching on 1.5 acres of government land, officials said.