Krishna Institute of Medical Sciences Limited (KIMS Hospitals) announced the dismissal of a Special Leave Petition by the Hon’ble Supreme Court on October 27, 2026. This ruling pertains to proceedings questioning the administration of the Andhra Mahila Sabha Trust, which had granted KIMS Hospitals a long-term lease for land in Chennai. The court’s decision allows the company to proceed with its project without further legal impediment.
Supreme Court Upholds Lease Agreement
Krishna Institute of Medical Sciences Limited (KIMS Hospitals) has received a significant update regarding its long-term lease agreement for land in Chennai. On October 27, 2026, the Hon’ble Supreme Court dismissed a Special Leave Petition filed by parties seeking to challenge the lease. This dismissal brings a crucial phase of legal proceedings to a close, allowing the company to advance its planned development.
Background of the Proceedings
The legal challenges originated from proceedings initiated under Section 92 of the Code of Civil Procedure, 1908, questioning the administration of the Andhra Mahila Sabha Trust. The Trust had entered into a Leave and Licence Agreement with KIMS Hospitals for approximately 1.168 acres of land in Raja Annamalai Puram, Chennai, for establishing a Super Speciality Hospital. The company was named as Defendant No. 12 in the suit. While a Single Judge granted leave to institute the suit, the Trust’s appeal was dismissed by the Division Bench on September 15, 2026. An interim stay was vacated, permitting the suit to continue until the Supreme Court’s final order.
Current Status and Project Viability
In its update, KIMS Hospitals clarified that the aforementioned proceedings were related to the Trust’s administration and that no final determination has been made on the allegations. Importantly, the proceedings did not result in any order of injunction or stay that would prevent the Company from proceeding with its project. The company’s rights under the Leave and Licence Agreement remain intact, ensuring the project’s commercial viability and underlying value are preserved.
Source: BSE
