J.R. Midha, J.:--

1. The appellant, NDMC, has challenged the impugned judgment and decree dated 22nd November, 2013 whereby the Trial Court has decreed the respondent‘s suit for declaration, permanent and mandatory injunction.

2. Factual matrix

2.1. NDMC invited tenders for licence of plot No. 37, Shaheed Bhagat Singh Marg, New Delhi measuring 0.66 acres for the construction and commissioning of a youth hostel to meet the 56 requirement of ASIAD games in 1982.

2.2. M/s P.S.J. Housing Enterprises Pvt. Ltd. submitted the highest bid, which was accepted by NDMC and a licence deed dated 4th November, 1981 was executed by NDMC in favour of M/s. P.S.J. Housing Enterprises Pvt. Ltd. In terms of clause 22 of the licence deed dated 4th November, 1981, M/s. PSJ Housing Enterprises Pvt. Ltd. incorporated a public company, M/s.Prominent Hotels Ltd. with the object of taking over the youth hostel.

2.3. On 16th July, 1982, NDMC executed a licence deed dated 16th July, 1982 in favour of M/s Prominent Hotels Ltd. (hereinafter referred to as Licensee‘) for running an international youth hostel for a period of 99 years with effect from 4th November, 1981 subject to increase in licence fee afte