In Brief
The State of Himachal Pradesh challenged interim orders from the High Court directing the Municipal Corporation to lease out a property (restaurants at the Ridge, Shimla) previously let to HPTDC at a much lower rate than market rates. The Supreme Court held that the High Court's orders exceeded the scope of judicial review. Without first deciding the validity of the subsisting contract between the Municipal Corporation and HPTDC, the court could not mandate a tender process. The Court stressed that statutory procedures under the Municipal Corporation Act must be followed. The only proper relief would have been directing recovery of outstanding dues. The court set aside the High Court's orders, disposed of the writ petition, and directed refund of earnest money (Rs. 10 lakhs) paid by N & S Resorts with interest."
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