Delhi High Court orders status quo in Ambassador Hotel dispute

The Delhi High Court recently ordered the Central government and the owners of Delhi’s iconic Ambassador Hotel to maintain the status quo over the hotel and some other properties in the Sujan Singh Park.

In an order passed on August 10, Justice Neena Bansal Krishna stayed the operation of a June 9 order of the appellate court which had ruled in favour of the Central government and against the owners of the hotel, Sir Sobha Singh & Sons Private Limited.

The company has been involved in a dispute with the Central government over the properties for nearly seven decades.

The High Court said that the stay will remain in force till the disposal of the hotel owners' appeal against the appellate court order.

"The operation of the judgment and decree dated 09.06.2026 is stayed and the parties are directed to maintain status quo in respect of the suit property till the disposal of the appeal," the Court ordered.  

The dispute concerns the northern block of Sujan Singh Park, next to Khan Market in Delhi. The Ambassador Hotel and some flats were developed by the appellant company on two plots of land, around 7.58 acres each, allotted by the Government of India in 1943.

According to the company, under a 1945 agreement to lease, the government promised a perpetual lease upon completion of the project. The company claims that the government approved and participated in the construction, including the hotel block. 

However, in 1959, the government alleged misuse because of the construction of the hotel block and, in 1960, purportedly re-entered the entire land.

The company immediately sued, obtaining an injunction the same year. The injunction continued till 2009 when a trial court ruled in the company’s favour. The trial court held that the construction was lawful and ordered the government to execute a perpetual lease. 

The government challenged the order, and the appellate court set it aside on June 9, 2026. Two days later, the government issued an eviction notice to the company under the Public Premises (Eviction Of Unauthorised Occupants) Act, 1971 (PP Act).  

The company then approached the High Court.

In the judgement delivered on August 10, Justice Krishna said that the company, Sir Sobha Singh & Sons, has remained in long and continuous possession of the suit property and has "established a prima facie case for protection of the suit property, till the adjudication of the substantial questions of law arising in the appeal".

"It also cannot be overlooked that the property has been constructed and has remained in use for several decades, since 1960s. The impact of the impugned judgment would not only affect the rights of the appellant, but may also affect numerous persons residing in the flats constructed in the suit property. The balance of convenience, therefore, lies in maintaining the existing position till the regular second appeal is decided," the Court held.

Therefore, it stayed the June 9 order of the appellate court.

On the Central government's eviction notice under the PP Act, the Court said that the June 9 order (which has been stayed by the High Court) "shall not form the basis for the initiation or continuation of proceedings under the Public Premises Act". 

"The Union of India shall, however, be at liberty to pursue its remedies under any law, dehors the judgment and decree dated 09.06.2026, the operation of which has been stayed," the Court said.  

Senior Advocates Neeraj Kishan Kaul and Sandeep Sethi with advocates Shaunak Kashyap, Mayanka Dhawan, Vikram Kalra, Namisha Choudhary, Toshiv Goyal, Monika Phartyal, Shreya Sethi, Krisna Gambhir and Anmol Aggarwal appeared for Sir Sobha Singh & Sons Private Limited.

Central Government Standing Counsel (CGSC) Ashish K Dixit with advocates Adhiraj Singh, Umar Hashmi, Ayush Kumar, Iqra Shiekh and Nishant Bahuguna represented the Union of India.

[Read Judgement]