In Brief
Central Warehousing Corporation (CWC), a government-owned statutory body operating a warehouse on leased land within a Special Economic Zone (SEZ), challenged a High Court order directing settlement with Adani Ports Special Economic Zone Limited (APSEZL). The Supreme Court held that courts cannot impose unfavorable settlement terms on statutory corporations while exempting private entities from agreed obligations. The Court found the High Court wrongly compelled CWC to accept partial settlement terms while allowing APSEZL to renege on a revenue-protection condition. The judgment emphasizes that when balancing statutory and private interests, courts must be impartial and cannot thrust settlements causing financial detriment to public bodies. The case was remitted to the trial court for fresh consideration.
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