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Supreme Court of India · 13/10/2022

CENTRAL WAREHOUSING CORPORATION versus ADANI PORTS SPECIAL ECONOMIC ZONE LIMITED (APSEZL) AND OTHERS

[2022] 9 S.C.R. 1003 · 2022 INSC 1082

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

CWC, a statutory corporation, ran a warehouse on 34 acres sub-leased to it at Mundra in 2004. The land was later included in APSEZL's notified SEZ, and in 2017 APSEZL stopped gate passes. CWC filed two writ petitions, one against that action and one against the Commerce Ministry's refusal to delineate the land. APSEZL had offered an alternative site, a new godown and underwriting of CWC's revenue at its published tariff. CWC's Board accepted all three terms, but APSEZL then withdrew the third. Deciding the LPA, the Division Bench made CWC accept the first two terms or obtain SEZ approval, and left the third to mediation. The Supreme Court held that a composite settlement could not be split and forced on a statutory body for a private party's benefit. It set the order aside and remitted the writ petitions.

Issues

  1. Whether the High Court in an intra-court appeal could compel a statutory corporation to accept part of a composite settlement offer the private party had partly withdrawn
  2. Whether the High Court's adverse remarks about CWC were justified
  3. Whether two Ministries of the Union may take contradictory stands on delineation of the land from the SEZ

Provisions considered

Held

Result

Appeals allowed. The Division Bench judgment was set aside and both writ petitions remitted to the Single Judge for decision, preferably within six months. The Division Bench's interim order continues until then, and the parties remain free to settle.

Judgment PDF: Supreme Court of India, [2022] 9 S.C.R. 1003.