High Court allows tourism corp to run 9 hotels till March 31 next year

The HP High Court today reviewed its order in which it had ordered the closure of 18 hotels of the Himachal Pradesh Tourism Development Corporation (HPTDC) due to a low occupancy rate.

The court reviewed its order and allowed the HPTDC to run nine of the 18 hotels, namely The Palace, Chail; The Chanderbhaga, Keylong; Hotel Devdar, Khajiar; Hotel Meghdoot, Kiarighat; Log Huts, Manali; Kunzum, Manali; The Bhagsu, McLeodganj; the Castle, Naggar; and Hotel Dhauladhar, Dharamsala, till March 31, 2025.

Justice Ajay Mohan Goel clarified that the continuation of the order qua the above said properties would be reviewed thereafter based on their performance. The court stated that, however, the order passed on November 19 would continue to remain in operation qua other nine properties/units of the HPTDC.

The court passed the order on an application filed by the HPTDC for the recall/modification of the order passed by the court on November 19 in terms whereof, the court had directed the Tourism Development Corporation to forthwith stop operation with regard to 18 properties, on the basis of the data placed before it by the HPTDC were having occupancy of less than 40 per cent per annum.

During the course of hearing, the senior counsel appearing for the HPTDC submitted that taking a cue from the court order, the corporation was taking serious steps to ensure that its properties were put to maximum use and they start making profits rather than remain just “white elephants”.

It was further contended in the court that some of the properties of the HPTDC, which had been ordered to be closed, had some forthcoming obligations in the mode of room bookings as well as event bookings. Advances had been received from the parties and under these circumstances, the modification of the order had been prayed for.

It was brought to the notice of the court that some of the 18 units, which besides offering hotel rooms were providing the facilities of restaurant and banquet halls, had started earning income. Besides, units like The Palace Hotel, Chail; and The Castle, Naggar; are also earning income from the gate entry ticket.

It HPTDC contended that as it indeed stood chastened by the court order and shall be making all-out efforts to pull itself out of the red. It would also ensure that the dues of its retired employees were paid in time and such a situation did not arise in future.

After hearing the matter for some time and taking on record the compilation that was handed over by the HPTDC counsel, Justice Goel observed that “this court is not modifying its order of November 19 in totality but is permitting the corporation to run nine of its properties till March 31, 2025, with a rider of their performance.

In its earlier order, the court had ordered the closure of 18 properties of the HPTDC — The Palace Hotel, Chail; Hotel Geetanjali, Dalhousie; Hotel Baghal, Darlaghat; Hotel Dhauladhar, Dharamsala; Hotel Kunal Dharamsala; Hotel Kashmir House, Dharamsala; Hotel Apple Blossom, Fagu; Hotel Chanderbhaga, Keylong; Hotel Devdar, Khajiar; Hotel Giriganga, Kharapatthar; Hotel Meghdoot, Kiarighat; Hotel Sarvari, Kullu; Hotel Log Huts, Manali; Hotel Hadimba Cottage, Manali; Hotel Kunzum, Manali; Hotel Bhagsu, McLeodganj; Hotel the Castle, Naggar; and Hotel Shivalik, Parwanoo.