Multiplex moves HC against closure order of Aerohub
Madras high court
challenging the proposed closure of its multiplex at Aerohub located in Chennai airport. Admitting the plea on Thursday, Justice V Anand Venkatesh ordered the maintenance of the status quo until July 8.
Aggrieved by an order issued by the Airports Authority of India (AAI) dated June 20, refusing permission to operate the multiplex at Aerohub, PVR approached the court. When the plea came up for hearing, senior advocate P S Raman, representing PVR, submitted that the petitioner was a sub-licensee of Meenambakkam Realty Pvt Ltd, with which AAI entered into a development contract for the construction of Aerohub.
While AAI prematurely terminated the development contract with Meenambakkam Realty, it did not order the closure of any of the commercial establishments run by sub-licensees.
However, it insisted upon the closure of the multiplex alone on the ground that a cinema hall was not permissible under the Airports Authority of India Act, Raman said.
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Pointing out that PVR invested 20 crore in the multiplex, he submitted that AAI could not project the operation of a cinema hall in the airport as an illegal activity and that it is bound by the doctrine of promissory estoppel since the construction of the cinema hall was done with the full consent of AAI, which approved the building plan. Raman added that the AAI Act does not contain any express prohibition on the operation of cinema halls at the airports, as it states that the functions of AAI would include the establishment and maintenance of hotels, restaurants, or restrooms either at airports or near the airports.
Representing the AAI, additional solicitor-general A R L Sundaresan submitted that AAI did not sign any direct contract with PVR.
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