In Brief
A public spirited person filed a writ petition in the High Court challenging a lease between the Municipal Corporation Shimla and HPTDC (a state tourism corporation) as being at rates much lower than market value, causing financial loss. The High Court issued interim orders directing the Corporation to conduct a public auction, which resulted in a third party offering substantially higher rent. On appeal, the Supreme Court held that the High Court's interim orders violated the scope of judicial review and ignored the subsisting lease contract between the parties. The Court set aside the High Court's orders, holding that mandatory orders cannot be passed at the interlocutory stage without first examining the validity of existing contractual obligations. The Court directed the Municipal Corporation to refund earnest money with interest to the intervener.
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