The court also directed the Greater Cochin Development Authority (GCDA) to deposit Rs 25 lakh with the Ernakulam district collector within a week for compensating the loss due to the exercise.
"The administration shall be entitled to close down the premises and the petitioners shall cooperate in the said exercise," Justice K Vinod Chandran said.
The court gave the order on a plea by business establishments challenging a notice issued by the GCDA directing that the units inside the stadium complex be closed for the specific period for smooth conduct of the FIFA U-17 World Cup football tournament in October.
In their petition, the business establishments had said the closure of the units will cause heavy financial liabilities to them.
If the GCDA is bent on implementing the direction, they should be adequately compensated, the petition had said.
The GCDA, which owns the stadium, had submitted that it was in fact only a temporary suspension of the right of the tenants to use the premises.
The GCDA said more than 50,000 people are likely to assemble in the stadium to watch the football matches.
"Functioning of shops/offices within the Jawaharlal Nehru International (JNI) stadium complex can cause hindrances to safety and the security arrangements to be facilitated," the GCDA had said.
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