Eviction under KBLR Act not allowed for SEZ premises; disputes must follow SEZ Act Section 42 arbitration rules
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....The HC held that eviction proceedings under the KBLR Act were not maintainable against the petitioner firm occupying premises within an SEZ, as the tenancy was incidental to the entrepreneur-developer relationship governed exclusively by the SEZ Act. Section 42 of the SEZ Act mandates arbitration as the sole dispute resolution mechanism for such disputes, excluding ordinary rent control remedies. The court found no repugnancy between the SEZ Act and KBLR Act due to their distinct legislative domains and purposes, applying the doctrine of pith and substance. The premises, being part of an Industrial Township, fall outside the KBLR Act's ambit per relevant state legislation. The respondent's attempt to evict under the KBLR Act was thus improper; instead, disputes must be resolved via SEZ Act arbitration. The petition was allowed, setting aside the impugned eviction order.....
TaxTMI