Himachal Court Issues Stay On Closure Of 9 HPTDC Hotels Due To Low Occupancy

In a recent legal development, the Himachal Pradesh High Court has temporarily stayed the order to close nine hotels under the Himachal Pradesh Tourism Development Corporation (HPTDC). The division bench, comprising Justices Vivek Singh Thakur and Rakesh Kaithala, passed an interim order after hearing an appeal from HPTDC challenging the earlier decision of a single-judge bench.

On November 19, Justice Ajay Mohan Goel had issued an order for the closure of 18 HPTDC hotels due to low occupancy levels. The decision was made in light of poor performance and occupancy at these properties.

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However, the court provided a relief on November 22, allowing nine of the properties to continue operating until March 31, 2025, while the remaining nine hotels were set for closure.

HPTDC had promptly filed an application seeking a recall or modification of the order, highlighting that the corporation was taking proactive steps to ensure better utilization of its properties. Additionally, HPTDC argued that several properties earmarked for closure had ongoing room and event bookings, with advance payments already received, making an immediate shutdown complicated.

The matter will be revisited with a further hearing set for January 3, 2025. Until then, the hotels in question remain open, providing a temporary reprieve for the state’s tourism sector, which has been impacted by fluctuating occupancy levels.

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