'Surprised With Observations Made By High Court' - Supreme Court Sets Aside Gujarat HC Order Granting Relief To Adani Ports SEZ
While setting aside the Gujarat High Court order in a case of dispute between Adani Ports Special Economic Zone Ltd (APSEZL) and Central Warehousing Corporation (CWC), the Supreme Court observed that it is surprised with the observations made by the High Court.The bench of Justices BR Gavai and CT Ravikumar said that the approach of the High Court ought to have been a balanced one and that...
The bench of Justices BR Gavai and CT Ravikumar said that the approach of the High Court ought to have been a balanced one and that the settlement could not have been thrust upon a statutory Corporation to its detriment and to the advantage of a private entity.
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 three months. Aggreived 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.
"When an issue involved the balancing of interests of a statutory Corporation and a private company, the approach of the High Court ought to have been a balanced one. The High Court ought to have taken into consideration that, unless all the three conditions were complied with, the interest of the appellant-CWC, which is a statutory Corporation, could not have been safeguarded. If a settlement was to be arrived at, unless the same was found to be in the interest of both the parties, it could not have been thrust upon a statutory Corporation to its detriment and to the advantage of a private entity.", the bench observed.
Observing thus, the bench set aside the High Court order. The matter was remitted back to the Single Judge of the High Court for consideration afresh, to be decided as expeditiously as possible and preferably within a period of six months.
Also read: Departments Of Union Of India Should Not Take Contradictory Stands , Says Supreme Court
Case details
Central Warehouse Corporation vs Adani Ports Special Economic Zone Limited (APSEZL) | 2022 LiveLaw (SC) 839 | SLP(C) 15548-49 of 2021 | 13 October 2022 | Justices BR Gavai and CT Ravikumar
Counsel: Sr. Adv Maninder Singh for the appellant , Sr. Adv Shyam Divan for respondent
Headnotes
Practice and Procedure - It does not augur well for the Union of India to speak in two contradictory voices. The two departments of the Union of India cannot be permitted to take stands which are diagonally opposite - Union of India to evolve a mechanism to ensure that whenever such conflicting stands are taken by different departments, they should be resolved at the governmental level itself. (Para 52-53)
Summary - Appeal against Gujarat HC order in a dispute between Adani Ports Special Economic Zone Ltd (APSEZL) and Central Warehousing Corporation - Allowed - When an issue involved the balancing of interests of a statutory Corporation and a private company, the approach of the High Court ought to have been a balanced one. The High Court ought to have taken into consideration that, unless all the three conditions were complied with, the interest of the appellant-CWC, which is a statutory Corporation, could not have been safeguarded. If a settlement was to be arrived at, unless the same was found to be in the interest of both the parties, it could not have been thrust upon a statutory Corporation to its detriment and to the advantage of a private entity.
Click here to Read/Download Judgment