In National Herald case, top court stays HC’s eviction order against AJL

A bench led by Chief Justice Ranjan Gogoi noted that the question that needs to be determined in the case is whether transfer of shares from one company to another would amount to violation of the land lease rights.

The Supreme Court put on hold eviction proceedings initiated against Associated Journals Limited (AJL), publisher of National Herald, staying the Delhi high court order evicting occupants of the Capital’s Herald House building. It also issued notice to the Land and Development Office on AJL’s appeal.

In National Herald case, top court stays HC’s eviction order against AJL (Biplov Bhuyan/HT PHOTO)

A bench led by Chief Justice Ranjan Gogoi noted that the question that needs to be determined in the case is whether transfer of shares from one company to another would amount to violation of the land lease rights. It brushed aside the objections raised by the L&DO and stayed the HC’s February 28 verdict that dismissed AJL’s plea to restrain the department from taking any “coercive steps” on the vacation of the premises.

In its orders, the HC upheld a single judge bench’s view that the entire transaction of transferring the shares of AJL to Young India (YI) was nothing but a clandestine and surreptitious transfer of the lucrative interest in the premises to Young India. It was found that by transfer of AJL’s 99% shares to YI, the beneficial interest of AJL’s property worth ~413.40 crore was “clandestinely” transferred to YI, in which Congress President Rahul Gandhi and UPA chairperson Sonia Gandhi are shareholders.