The division bench of Chief Justice S.N. Variava and Justice S.K. Mahajan said that any ``unsavoury'' incident could scare the guests away and destroy a hotel's image. Therefore, the trade unions could not hold protest demonstrations in front of hotels, it was stated. The judges were hearing an appeal by the Asian Hotel Employees Union (AHEU) challenging the court's earlier order whereby the agitating hotel employees were asked to protest beyond 80 metres of hotel Hyatt Regency's boundary.

The employees are agitating against the alleged sacking of some union leaders and suspension of certain workers for trade union activities. On October 8, a single bench had allowed the union to hold a peaceful demonstration outside the 80-metre limit of Hyatt's boundary without disturbing the entry and exit of people.