Authority: Supreme Court of India

Order Date: 25 September 2026

Case Overview

  • Parties: Petitioner – Smart City Kochi Infrastructure Private Limited (private‑sector developer); Respondent – Musthafa and Almana International Consultants.
  • Background: Under a tripartite agreement with the Government of Kerala, the petitioner established the SmartCity SEZ on land leased for 99 years. The respondent obtained a sub‑lease on 25‑Jan‑2017 to set up a unit, but the unit never became operational.
  • Dispute: The respondent failed to commence operations by the deadline of 30‑Apr‑2019, leading to arrears of sub‑lease rent and maintenance charges. The petitioner filed a Rent Control Petition for eviction. Key legal questions concerned the applicability of the Special Economic Zones Act, 2005 versus the Kerala Buildings (Lease and Rent Control) Act, 1965, and whether the Public Premises (Eviction of Unauthorized Occupants) Act, 1971 applied.
  • Procedural history: The Rent Control Court and the High Court issued divergent opinions on maintainability. The High Court stayed further leasing of the premises. The Supreme Court was approached via Special Leave Petition (C) No.28782 of 2025.

Final Outcome

  • The respondent must vacate the premises; the petitioner may re‑sub‑lease to another qualified entrepreneur.
  • Former Supreme Court Judge K.M. Joseph is appointed as arbitrator to adjudicate monetary claims, including rent, maintenance, interest, damages, and evaluation of any improvements made by the respondent.
  • The parties must within two weeks approach the arbitrator, who will appoint an Advocate Commissioner to supervise removal of the respondent’s movables and an Evaluator (architect/engineer) to assess any fit‑out work; costs to be shared.
  • Relevant SEZ authorities are directed to permit entry for inspection, inventory, and removal.
  • After removal and inventory, the vacant premises shall be taken over by the petitioner.
  • The writ petition W.P. (C) No.6234 of 2020 is closed; any pending applications are rejected.

Topics: SEZ, Lease Dispute, Arbitration