Calcutta High Court
Mark Hotels And Resorts Private Limited vs West Bengal Tourism Development … on 11 April, 2025
Author: Ravi Krishan Kapur
Bench: Ravi Krishan Kapur
OIPD-13 & 14
IN THE HIGH COURT AT CALCUTTA
ORIGINAL SIDE
Ordinary Original Civil Jurisdiction
(Intellectual Property Rights Division)
AP-COM/161/2024
MARK HOTELS AND RESORTS PRIVATE LIMITED
VS
WEST BENGAL TOURISM DEVELOPMENT CORPORATION LIMITED
AP-COM/166/2024
WEST BENGAL TOURISM DEVELOPMENT CORPORATION LIMITED
VS
MARK HOTELS AND RESORTS PRIVATE LIMITED
BEFORE:
The Hon'ble JUSTICE RAVI KRISHAN KAPUR
Date : 11th April, 2025.
Appearance:
Mr. Subhashis Sengupta, Adv.
Ms. Preeta Chaudhary, Adv.
...for the petitioner
Mr. Suman Datt, Sr. Adv.
Mr.Paritosh Sinha, Adv.
Ms. S. Das, Adv.
Mr. R. K. Thakur, Adv.
Mr. T. Dasgupta, Adv.
The Court: This is an application under Section 34 of the Arbitration and
Conciliation Act, 1996 challenging an award dated 11th January, 2019. By the
award, the Sole Arbitrator, has inter alia, held as follows:
"Award in favour of the Claimant, viz. Mark Hotels & Resorts
Private Limited, against the Respondent viz. West Bengal
Tourist Development Corporation Limited:
1. On the amount of Security Deposit, Rs. 1,00000/-(Rupees
One lakh) with interest at the rate of 18% per annum from
October 1, 2015, till the date of award (11th January, 2019)
at the compound rate on the basis of yearly rest.
2. On the amount of Minimum Annual Guaranteed Return, Rs.
7, 51,000/- (Seven lakh and fifty thousand) with interest at
the rate of 12% per annum from October 1, 2015, till the date
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of award (11th January, 2019) at the compound rate on the
basis of yearly rest.
3. On the cost of construction, Rs.2,61,08,848/-(Two Crore
sixty-one lakh eight thousand eight hindered and forty-eight),
with interest at the rate of 12% per annum from October 1,
2015, till the date of passing of award (11th January, 2019)
at the compound rate on the basis of yearly rest.
4. Costs of the proceeding amounting to Rs. 25, 10,375.50р.
5. The post award interest on the entire awarded sum will be
at the rate of 2% higher than the current rate of interest
prevalent on the date of award (11th January 2019) till the
actual payment.”
“Award in favour of the West Bengal Tourism Development
Counterclaim: Corporation Limited on the
The Mark Hotels & Resorts Private Limited is directed to hand
over the possession of the subject-matter of the agreement, as it
is in the present condition, to the West Bengal Tourism
Development Corporation Limited within one month from today.
No costs.”
A bare perusal of the award indicates that there is a huge interest
burden which is running on the State in case of the award being upheld.
Significantly, the award arises out of a tender notice dated 2nd April, 2005
inviting bids for construction a Wayside Facility on land belonging to the State
of West Bengal. It is alleged that the award holder had completed construction
as far back as in 2015.
In view of the long time gap which has passed, the State is directed to
consider the offer made in Court. It is also of some relevance that the State has
deposited a sum in excess of Rs.6.70 crores in terms of the order passed under
section 36(2) of the Arbitration and Conciliation Act, 1996 and the additional
interest component is yet to be secured.
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The submissions made on behalf of the Mr. Sengupta, stands concluded
insofar as AP/161/2024 is concerned.
Mr. Dutta, Senior Advocate appearing alongwith Mr. Sinha on behalf of
the State seeks an adjournment to take instructions insofar as the proposal
made in Court is concerned.
Let this matter appear for hearing on 30th April, 2025.
(RAVI KRISHAN KAPUR, J.)
S.Bag