Authority: Calcutta High Court, Constitutional Writ Jurisdiction, Bench of Justice Hiranmay Bhattacharyya

Order Date: 17 July 2026

Case Overview

  • Parties: M/s Century Extrusions Limited & Anr (petitioner) vs West Bengal Industrial Infrastructure Development Corporation (WBIIDC) & others (respondents); IFCI Limited also involved.
  • Background:
  • A lease of 4.4921 acres in Mouza Sadatpur J.L. No. 89, Kharagpur Industrial Park was executed on 29‑11‑1982 in favour of M/s Bhubansri Plastic Industries Ltd.
  • Bhubansri defaulted on loans from IFCI Ltd.; IFCI, as secured creditor, invoked SARFAESI Act Sec.13(4), auctioned the lease‑hold rights, and Century Extrusions emerged as the successful purchaser, receiving a Sale Certificate.
  • WBIIDC, by letter dated 16‑08‑2010, demanded a transfer fee of Rs 10,33,183 and outstanding maintenance/service charges; the petitioner paid the amount.
  • A draft deed of assignment was first forwarded on 21‑01‑2011. Subsequent show‑cause notices were issued on 21‑12‑2021 (non‑utilisation) and 17‑10‑2023 (failure to execute deed, alleged encroachment).
  • WBIIDC issued a cancellation/termination notice on 06‑06‑2024 alleging failure to execute the deed and to utilise the land.
  • Petitioner’s Contentions: Ready and willing to execute the deed; requested IFCI’s presence for registration (denied by IFCI); paid Rs 2,17,063 ground rent plus GST on 12‑06‑2023; submitted project implementation schedule and written undertaking; argued that delay was not solely its fault.
  • Respondent’s Contentions (WBIIDC): Deed unnecessary after Sale Certificate; petitioner guilty of laches and non‑utilisation; alleged encroachment; claimed natural justice was observed.
  • IFCI’s Position: Initially stated execution of deed was beyond its purview (email 04‑06‑2024); later, through counsel, agreed to execute the deed (recorded on 07‑04‑2026).
  • Court Findings:
  • The petitioner had indeed paid all demanded fees and complied with show‑cause notices.
  • The deed of assignment forwarded on 31‑05‑2023 required execution by IFCI, WBIIDC, and the petitioner; delay could not be attributed solely to the petitioner.
  • The timeline for construction and commercial production commences only after execution of the deed; therefore, penalising the petitioner for non‑utilisation before execution was untenable.
  • WBIIDC exceeded its jurisdiction by cancelling the allotment based on the original 1982 lease terms after directing execution of a new deed.
  • The precedent K. Chidambara Manickam vs. Shakeena (AIR 2008 Mad 108) regarding SARFAESI sale does not apply because WBIIDC specifically required execution of a deed.

Final Outcome

  • The cancellation/termination notice dated 06‑06‑2024 issued by the Chief Executive Officer, WBIIDC, is set aside.
  • WBIIDC and IFCI are directed to execute the deed of assignment of lease (draft dated 31‑05‑2023) within four weeks of receipt of a server copy of this order.
  • WPA 16816 of 2024 is allowed with the aforesaid directions; pending applications are disposed; no order as to costs.
  • Urgent certified copies may be supplied upon compliance with formalities.

Topics: Land Lease Dispute, Deed Assignment