Gallops reaches settlement with RWITC, HC says it can reopen - By Swati Deshpande | TOI
Posted on - 17 Apr 2019
Gallops reaches settlement with RWITC, HC says it can reopen
Swati Deshpande | TOI
Ten days after being shuttered on the order of the Bombay high court, Gallops, the fine-dining restaurant at the Mahalaxmi racecourse, was allowed to reopen, again on court orders.
The high court's decision on Tuesday,ving the restaurant a reprieve, came after its owners handed over a cheque of Rs 20 lakh as monthly fee to the Royal Western India Turf Club to run it.
The order followed a heated discussion all afternoon in court between counsel for BJR's that runs Gallops, and RWITC, before Justice Gautam Patel that ended with an "in-principle arrangement" on a 12-year payment schedule for Rs 48 crore, with Rs 10 crore to be deposited immediately with a court receiver.
The judge directed that the receiver, appointed by him on April 5, will continue to be in "symbolic possession of the premises and business for the 12 years". Shut and seal Gallops, Justice Patel had ordered before as BJR's had not complied with earlier court orders.
Gallops to pay Rs. 20L/month to run at racecourse
Orders given before included one the Supreme Court passed last August to pay RWITC Rs 18 crore within six weeks, in their almost decade-long turf war.
In 2017, an arbitrator had directed the restaurant to pay around Rs 52 crore as damages to the club, after accepting the club's stand that Gallops was liable to be evicted for violating terms of a 'business conducting agreement' of 2009. Gallops had appealed before the HC, which had directed it to pay 50% of the amount pending appeal. That amount was further reduced by the SC.
After several combinations argued in court, the arrangement agreed upon was to pay Rs 10 crore immediately, within two months of the arrangement being finalised by an approval of the RWITC general board. Gallops will pay Rs 38 crore over the remaining 11 years, including "monthly conducting fees". The amount will be Rs 2 crore from the second to fifth year and then increase in phases.
The court also directed BJR's — a partnership firm of Jasmine Singh, Iqbal Singh and Rahul Malik — to "withdraw all suits'' against RWITC, including its claim to tenancy rights. The court added that in case of default within the first nine years, the entire remaining arbitrary award will have to be paid immediately to the club with interest.
The firm handed over the cheque in the evening to the court receiver and the restaurant was opened. In the order, Justice Patel mentioned that he knows that the jobs of 100 staff are at stake and that the wage bill is Rs 17 lakh, and fixed the monthly fee for conducting the business at Rs 20 lakh. "The person most affected there is the poor paanwala,'' he observed in a lighter moment.
"In the last two years, we have won all our appeals… and we have finally achieved a settlement of the entire case. I am very happy with the outcome today," said RWITC chief K N Dhunjibhoy. Added Vivek Jain, a former club chairman: "The settlement will be a shot in the arm to the club, suffering from strained resources. It is a winwin for both sides."
"We will be open for the public from Wednesday," said Jasmine Singh, partner at BJR's.
