Supreme Court Orders EIH to Vacate Wildflower Hall in Shimla

The Supreme Court of India has dismissed hospitality chain EIH’s appeal against a ruling by the Himachal Pradesh High Court, directing the Oberoi group’s flagship firm to vacate Shimla’s Wildflower Hall luxury hotel. The apex court has mandated that the hotel chain relinquish possession of the property to the state government within a year, setting a deadline of March 2024.

This decision follows a petition from the Himachal Pradesh government, which was granted by the Himachal High Court in early January, instructing EIH to vacate the historic luxury property situated in Mashobra, Shimla. The dispute between the Himachal government and the Oberoi Group over the property has spanned more than two decades.

Previously, a high court order issued on November 17 last year permitted the state to immediately take possession of the hotel. However, a stay order was later issued when the tourism department moved to seize the property, prompted by EIH’s petition seeking a review of the November 17 order.

The Himachal Pradesh government argued that EIH’s failure to comply with the arbitral award of July 23, 2005, led them to decide to reclaim the ‘Wild Flower Hall’ property in accordance with the award. Originally, in 1995, the Oberoi Group converted the property, into a five-star hotel under a joint venture called Mashobra Resort , formed with the Himachal Pradesh government.

Despite the state government holding shares in the venture, representing an unspecified stake, operational delays and disputes emerged between the parties involved. Over time, the state government sought to terminate the arrangement and regain possession of the property.