Special provision for judicial reviews and audit reviews
5.—(1) Section 2(1) does not apply for the purposes of determining any question arising on—
(a)an application for judicial review, or
(b)an audit review,
as to whether a district council had power to enter into a contract (or exercised any power properly in entering into a contract).
(2) Section 2(1) has effect subject to any determination or order made in relation to a certified contract on—
(a)an application for judicial review, or
(b)an audit review.
(3) Where, on an application for judicial review or an audit review relating to a certified contract entered into by a district council, a court—
(a)is of the opinion that the district council did not have power to enter into the contract (or exercised any power improperly in entering into it), but
(b)(having regard in particular to the likely consequences for the financial position of the district council, and for the provision of services to the public, of a decision that the contract should not have effect) considers that the contract should have effect,
the court may determine that the contract has (and always has had) effect as if the district council had had power to enter into it (and had exercised that power properly in entering into it).
(4) In this section and sections 6 and 7 references to an application for judicial review include any appeal (or further appeal) against a determination or order made on such an application.