Supreme Court Sets Aside Gujarat HC Order Favouring Adani Ports SEZ – Surprised With Observations Made By High Court

The Supreme Court in the case Central Warehouse Corporation vs Adani Ports Special Economic Zone Limited (APSEZL), while setting aside the Gujarat High Court order observed that it is surprised with the observations made by the High Court in the case.
The bench comprising of Justice BR Gavai and Justice CT Ravikumar observed and has stated that the approach of the High Court ought to have been a balanced one and that the settlement could not have been thrust upon that of a statutory corporation to its detriment and to the advantage of a private entity.
In the present case, the Gujarat High Court had effectively allowed Adani Ports Special Economic Zone Ltd (APSEZL) to acquire 34 acres of land adjacent to Mundra Port in Gujarat if the CWC failed to obtain approval or waiver of its warehousing facility as an SEZ-compliant unit within the period of three months. Thus, aggrieved with this order, the CWC approached the Apex Court contending that the order of the High Court is almost thrusting a part of the settlement on the CWC.
The bench observed that when an issue involved the balancing of interests of a statutory corporation and a private company, the High Court approach ought to have been a balance one. However, the High Court ought to have taken into consideration that, unless all the three conditions were complied with and the interest of the appellant-CWC, which is a statutory corporation, could not have been safeguarded. Therefore, if a settlement was to be arrived at, unless the same was found to be in the interest of both the parties and it could not have been thrust upon that of a statutory corporation to its detriment and to the advantage of a private entity.
Accordingly, the bench set aside the High Court order.