NDLI: Central Warehousing Corporation Vs. Adani Ports Special Economic Zone Limited (apsezl) and Others

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Infrastructure Project – Special Economic Zone
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Infrastructure Project – Special Economic Zone – Gujrat Maritime Board (GMB) executed Lease and Possession Agreement thereby granting lease of undeveloped land to Gujarat Adani Port Limited (GAPL) for 30 years – GMB also granted development rights under a Concession Agreement to GAPL to develop port and other facilities – GAPL vide agreement dated 2nd June, 2004 sub-leased a plot of land admeasuring about 34 acres to appellant-CWC, a statutory Corporation under the 1962 Act, for setting up a warehouse for storage and handling of foodgrains, notified commodities and related activities – CWC set up two Godowns and also made payments for development of infrastructure – Meanwhile, the Special Economic Zones Act, 2005 came into force and vast area of the leased land came to be notified as a Special Economic Zone (SEZ) vide notification issued by Ministry of Commerce and Industry, Government of India (Ministry of C & I) – Appellant-CWC made representation to Ministry of C & I for de-notification of said 34 acres of land from the SEZ – Meanwhile, respondent no.1-Adani Ports Special Economic Zone Limited (APSEZL) addressed communication to appellant-CWC informing that it would not permit the latter to continue warehouse activities and declined to issue gate pass for transportation stating that it had violated conditions enumerated in agreement dated 2nd June, 2004 – CWC filed writ petition – Single Judge of the High Court did not grant interim relief while issuing notice – CWC filed LPA – Division Bench granted ad-interim relief and directed respondents to allow CWC to carry out activities and to issue gate pass for transportation – In the meantime, request of CWC for delineation / de-notification of 34 acres of land rejected by Ministry of C & I – Appellant filed another writ petition – Attempts made by parties to amicably settle the matter – Proposal for settlement made by APSEZL that equivalent plot of land outside the SEZ zone would be earmarked, whereupon a godown of similar size would be constructed – Board of Directors of CWC accepted the settlement proposal on three conditions – APSEZL agreed on all the three conditions – However, it unilaterally resiled from the 3rd condition subsequently – Both parties thereafter informed the High Court that settlement was not possible – High Court held that though CWC was bound by the first two conditions as agreed between the parties, the second respondent was not bound by the 3rd condition offered by APSEZL and subsequently retracted by it – High Court held that, since there was a consensus on the first two conditions and no consensus on the 3rd condition, CWC was bound by the first two conditions and insofar as the 3rd condition was concerned, it was open for the parties to settle the same amicably between themselves or through mediation – On appeal, held: Approach adopted by High Court was not tenable – Offer given by respondent no.1-APSEZL was a composite one so also acceptance thereof by appellant-CWC was also composite – Acceptance of the first two conditions was also dependent upon the third condition – If High Court was so concerned about settlement of the dispute, then, while compelling appellant-CWC to accept the first two conditions, it also ought to have compelled respondent no.1-APSEZL to accept the third condition – 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 balanced – The High Court ought to have taken into consideration that, unless all the three conditions were complied with, the interest of appellant-CWC, which is a statutory Corporation, could not have been safeguarded – Judgment of High Court not sustainable – Warehousing Corporation Act, 1962. Statutory Corporation – Dispute between statutory corporation and a private entity – Settlement – Effect of – Held: Unless the settlement arrived is found to be in the interest of both the parties, it cannot be thrust upon a statutory Corporation to its detriment and to the advantage of a private entity. Government litigation – 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 conflicting stands are taken by different departments, they should be resolved at the governmental level itself
Judge	Hon'ble Mr. Justice Bhushan Ramkrishna Gavai
Neutral Citation	2022 INSC 1082
Petitioner	Central Warehousing Corporation
Respondent	Adani Ports Special Economic Zone Limited (apsezl) And Others
SCR	[2022] 9 S.C.R. 1003
Judgement Date	2022-10-13
Case Number	7277-7278

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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