India, June 12 -- In a setback for HLV Limited, the parent company of The Leela Mumbai hotel, the Bombay high court on Tuesday upheld the Airports Authority of India's (AAI's) right to evict it from three leased plots near the Chhatrapati Shivaji Maharaj International Airport (CSMIA).

A single-judge bench of justice Somasekhar Sundaresan ruled that the leased land was "public premises" owned by AAI, and despite HLV constructing a hotel and flight kitchen on it, disputes related to eviction are excluded from the arbitration agreement signed between the parties.

HLV Limited, formerly Hotel Leelaventure Limited, had leased three parcels of land near the Mumbai airport from the AAI. Two of the deeds were executed in October-November 1983 fo...