A dispute over Viceroy Palm Jumeirah continued on Monday as FIVE Holdings’ chairman and CEO Kabir Mulchandani said an injunction won by Viceroy Hotels and Resorts in DIFC Courts was effectively nullified pending further court decisions.
Mulchandani’s statement came after the Viceroy claimed on Sunday night that the June 22 injunction was still in place.
He said: “The Dubai Joint Judicial Committee, a judicial body to resolve disputes between Dubai and DIFC Courts, has decided to suspend the matter pending before DIFC Courts and Dubai Courts until it decides which is the relevant court.
“This was confirmed by the Dubai Joint Judicial Committee on 29 June, 2017 and further ratified by a letter issued on 2 July, 2017. Viceroy is referring to an order dated 22 June 2017, which has been suspended by force of law.”
Viceroy however released its own statement claiming that FIVE has refused it entry to the hotel in an act defying the orders of the DIFC Courts.
The group said it had issued its statement following the earlier, “inaccurate” one from Mulchandani insisting FIVE Holding remains in control.
Viceroy’s statement said: “Viceroy confirms that the injunction issued by the DIFC Courts on 22 June 2017 remains in place.
“That order prohibits the owner of the Viceroy Palm Jumeirah Dubai hotel from taking any steps to prevent Viceroy from exercising its exclusive authority to manage the hotel, and orders the reinstatement of Viceroy. As such, today’s statement by FIVE is inaccurate in many respects.”
Viceroy Hotels and Resorts signed a long term hotel management agreement to brand and manage the Palm Jumeirah hotel in 2013. The resort officially opened on 31 March 2017.
FIVE Holdings took over operation of the Viceroy Palm Jumeirah hotel last month, removing all Viceroy-branded signs from the hotel entrance.
At the time, FIVE Holdings said in a statement: “We believe now is the right time to disrupt the hospitality industry.”
Viceroy fought back by successfully acquiring an injunction from DIFC Courts prohibiting FIVE Holdings from preventing Viceroy from managing and operating the hotel.
Viceroy claimed the owner’s actions at that time breached the existing hotel management agreement, and pledged to take steps to ensure FIVE complied fully with the terms of the court order and management agreement.